Global Finance

Ensuring Global Economic Stability And The Promotion Of Healthy Investment.

A Head of State document by the Executive Office of the Head of State on 30/09/2025.

This Executive Order is enacted and promulgated to ensure global economic stability and the promotion of healthy investment throughout Earth's territory.

Exchange rate volatility is also one of the factors which determine the inflation of a country. Therefore, this study aims to analyze the relationship between the exchange rate volatility and inflation in Sri Lanka over the period 1977-2020. This study used inflation as the dependent variable. Exchange rate, export, import, money supply and foreign direct investment are used as the independent variable. Augmented Dicky-Fuller test is employed to identify the stationary of the variables. This result indicates that the variables are stationary in order one. Johansen Co-Integration test found that there is a positive and significant relationship between the exchange rate volatility and inflation, money supply and export and a negative correlation between the import. Adjustment toward the long-run equilibrium is ensured from the Vector Error Correction model result. But, there is no significant relationship in the short run between the exchange rate volatility and inflation. According to the CUSUM test result, the model is stable. From the Granger Causality test, exchange rate volatility has a one-way causal relationship with inflation. Therefore, this study concluded that exchange rate volatility and inflation have a long-run relationship and there is no significant correlation between the variables in the short-run. Hence, this study is recommended that the Sri Lankan government must try to stabilize the exchange rate and monitor the amount of money supply within the country.

We investigate the effect of uncertainty on investment. We employ a unique dataset of 25000 Greek firms’ balance sheets for 14 years covering the period before and after the eurozone crisis. A dynamic factor model is employed to proxy uncertainty. The investment performance of 14 sectors is examined within a dynamic investment model. Robust GMM estimates of the investment rate model reveal a high degree of heterogeneity among these sectors. Overall uncertainty affects negatively investment performance and this effect substantially increased in the years of crisis. Agriculture and Mining are the least affected and the most affected ones include Manufacturing, Real Estate and Hotels. Focusing on the response of investment to uncertainty, it emerges that (relative) smaller firms are affected more compared to larger ones. JEL classification: C23; D22; D81; D92; G31

Background: The MC4R gene harbours one of the strongest susceptibility locus for obesity, and its metabolic consequences. The objective of this study was to analyze whether dietary factors may attenuate the MC4R genotypes effects on obesity and its comorbidities.Methods: In 819 adult participants, genotyped for MC4R SNPs (rs17782313, rs12970134, rs633265, rs1350341) the anthropometric measurements, total body fat, visceral (VAT) and subcutaneous adipose tissue (SAT), blood glucose, insulin, total-, LDL-, HDL-cholesterol, and triglycerides concentrations were assessed. The daily macronutrient intake was calculated based on the three-day food intake records, and daily physical activity based on the validated questionnaire. The ANOVA or Kruskal-Wallis tests were used, and multivariate linear regression models were developed to evaluate the effects of diet on obesity and related factors in various genotypes carriers.Results: The CC genotype (rs17782313) carriers, being in the upper quan...

SAP S/4HANA Cloud Central Finance represent a strategic enabler for enterprises aiming to unify financial operations across fragmented SAP and non-SAP ERP environments. By centralizing financial data and processes within a single, cloud-based SAP S/4HANA instance, organizations can adopt a "Finance First" transformation path delivering immediate values without disrupting existing systems. This approach unlocks enterprise-wide financial visibility, accelerates close and reporting cycles and streamlines landscapes, offering a scalable and cost-effective foundation for full S/4HANA migration. It empowers finance leader with real-time insights, harmonized data, and enhance control to drive agile, data-driven decisions. However, to fully capitalize on these benefits, organizations must address critical challenges, including data harmonization, system integrations, and change management

The Dow Jones Sustainability Index (DJSI) was the world's first index to track corporate sustainability. We compared 36 banks listed on the DJSI with 36 non-DJSI banks in 15 countries from 2006 to 2015, using stochastic frontier analysis (SFA) and the stochastic metafrontier approach (SMF) and measuring the technology gap ratio (TGR) and metafrontier cost efficiency (MCE). Our results indicate that DJSI banks have higher cost efficiency than non-DJSI banks, although DJSI banks experienced greater fluctuation during the 2008 financial crisis. DJSI banks also outperform non-DJSI banks in TGR and MCE.

The article examines the issues of developing ecotourism on Lake Baikal, in particular in the village of Tankhoi, located on the border with the Baikal Nature Reserve. In the last decade, the Russian government decided on the need to develop educational tourism in specially protected areas, in particular in the village of Tankhoi. As a result of the search for promising solutions and the development of a project for the development of tourist and recreational activities, the local administration and the directorate of the reserve found solutions for the development of environmental and educational tourism in the territory adjacent to the village. Introduction: In the last decade, the Russian Government decided on the need to develop educational tourism in specially protected areas, in particular in the village of Tankhoi. As a result of the search for promising solutions and the development of a project for the development of tourist and recreational activities, the local administration and the directorate of the reserve found solutions for the development of environmental and educational tourism in the territory adjacent to the village. The main initiative in this direction, with the support of the Ministry of Natural Resources and Ecology of the Russian Federation, was the creation of a media project for the development of ecotourism, which made it possible to increase the number of national parks, reserves, and other forms of protected areas. Results: The novelty of the work lies in the analysis of the development of ecotourism on Lake Baikal, due to which environmental knowledge is popularized and attention is drawn to the problems of conserving natural resources. Analyzing the development of ecotourism on Lake Baikal is an important task, given the unique nature of this region and its importance for the conservation of biodiversity, which requires an integrated approach that takes into account various aspects of nature conservation and the development of ecological and educational tourism in this unique region. Conclusions: The development of the Baikal Nature Reserve and the implementation of the program for the introduction of educational ecological tourism facilities should have a positive impact on the development of the entire region and, in particular, the village of Tankhoi. This will make it possible to find new ways of cooperation with scientific and public organizations in Russia, and to draw attention to solving environmental and social problems of the Tankhoiskoe municipality. The ideas, educational programs for tourists and events for the local population, demonstrate the government's commitment to raising awareness and active participation of all stakeholders in nature conservation. In addition, the use of modern technology and international cooperation highlight the common desire for effective management and access to natural resources. Key words: ecotourism, informational and educational tourism, Tankhoi village, Baikal Nature Reserve, specially protected areas, tourist and recreational activities, visitor center, Baikal Nature Reserve, ecological routes. В России в последнее время наблюдается повышенное внимания к охраняемым природным территориям (ООПТ). Этот тренд связан с растущим осознанием важности сохранения природных территорий и биоразнообразных экосистем для будущих поколений. Благодаря повышенному вниманию властей к развитию особо охраняемых природных

This study empirically investigates the financial impact of ESG factors and market dynamics on service sector firm excess returns using a 2012-2021 panel dataset of 14 firms. Panel regression and time series analysis, along with machine learning models, were employed. Findings indicate that traditional Fama-French factors significantly influence returns, while a higher aggregated ESG score unexpectedly correlates negatively with excess returns. Marketlevel ESG factors show dynamic interdependencies with market returns but no Granger causality. Machine learning models demonstrate high predictive accuracy for future return direction, with financial and ESG features as key predictors. These exploratory findings are useful for understanding complex ESG-financial relationships in the service sector, guiding nuanced corporate sustainability strategies and investment decisions, and contributing to the ongoing debate on ESG materiality.

All microfinance institutions whether Islamic or Conventional provide small loans to poor people. Islamic microfinance institutions provide small (Riba Free) loans to (people) women to start their businesses. The purpose of this study is to compare the Islamic and Conventional Microfinance banks of Hyderabad in terms of level of satisfaction, age, type of financing, loan size, and time of repayment. We received 51 questionnaires from Islamic and Conventional Microfinance Banks through a convenient sampling technique. They analyzed the satisfaction level of women members of both microfinance institutions by using a questionnaire as a tool and derived data from women members of Islamic and conventional microfinance institutions of Hyderabad city. For data analysis, we used descriptive statistics to calculate the normality of distribution. Moreover, the Satisfaction level between Islamic Microfinance Banks and Conventional Microfinance banks is compared by using the Mann-Whitney U-test and computing the Chi-square test to determine the significant difference between categorical variables (age, type of loan, loan size, and time of repayment) and satisfaction. The findings of the study conclude that Islamic Microfinance is popular among women aged 31 years or above who borrow small amounts of loans for the short term. In contrast, Medium to Large amount of loan is borrowed mostly by women between 21-31 years from conventional banks for medium to longer term.

This is a Working Paper and the author(s) would welcome IMF WORKING PAPER any comments on the present text. Gtuioas should refer to a Working Paper of the International Monetary Fund, mentioning the author(s) f znd the date of issuance. The vicv/s

The study employs descriptive analysis which involves examining descriptive statistics for each variable to understand the data's characteristics and assess the dispersion of the data points from their mean, time series analysis, cointegration testing, Vector Autoregressive (VAR) modelling, and Vector error correction model (VECM), were also be used in the research. Findings: This research reveals that in Rwanda, the monetary base and overall monetary aggregates are primarily influenced by the extent of lending by commercial banks and demand deposits. It identifies a short-term causal relationship wherein the monetary base affects bank loans and the money supply. However, in the short term, the quantity of deposits, money supply, and the monetary base appear to have no direct impact on the volume of loans extended by commercial banks. The models validate that monetary indicators are chiefly influenced by the industrial production index, bank deposits, and the volume of loans issued by commercial banks Research Limitation/Implications: Establishing clear causality between money supply and economic variables such as output and inflation is challenging due to the potential for bidirectional causality. The money supply can influence these variables, and vice versa, making it difficult to identify the direction and magnitude of causal relationships. Practical Implications: The study's emphasis on the pivotal role played by commercial banks and their lending activities in the creation of money in Rwanda provides valuable insights into the country's banking sector dynamics. Social Implications: This knowledge can be used to design policies that promote financial inclusion, ensuring banks' activities contribute to wider economic goals. Originality/ Value: The use of a range of analytical techniques, including descriptive analysis, time series analysis, cointegration testing, Vector Autoregressive (VAR) modelling, and Vector error correction model (VECM), adds rigour to the analysis and enhances the robustness of the findings.

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One of the main concerns of investors is the evaluation of the return on investment, which is conducted using various models such as the CAPM (single-factor model), Fama-French three/five-factor models, and Roy and Shijin’s six-factor model and other models known as multi-factor models. Despite the widespread use of these models, their major drawbacks include sensitivity to unexpected changes, sudden shocks, high turbulence of price bubble, and so on. To eliminate such negatives, the multi-factor model using the penalty function method is used, in which, instead of averaging, the optimization and avoidance of the effects of abnormal changes and other factors affecting the capital market are considered. In order to evaluate stock returns, it is possible to select effective factors, to simulate and develop a model appropriate to the conditions governing the capital market in Iran. In the present study, by forming portfolios of investments and identifying and refining effective factors...

This paper examines the effects of ownership structure on dividend policy, specifically the role of controlling shareholders in shaping dividend policy in a sample of firms that pay dividends and issue new equity simultaneously. The results show that managers in weakly governed firms are more likely to initiate customized dividends to meet outside large shareholders' needs while simultaneously using costly external capital to finance new investment projects. This paper contributes to the existing literature on agency problems by explaining why firms engage in this suboptimal dividend policy: it allows large shareholders to extract private benefits.

Sharī ah compliance is a cornerstone of Islamic banking and finance. In Pakistan, the regulatory landscape for Islamic financial institutions (IFIs) has undergone substantial evolution since the issuance of the IBD 0 2 B F Circular No. 2 in 2008. This article traces the development of Sharī ah 0 2 B F governance from its early frameworks to the landmark Sharī ah Governance Framework (SGF) 2024, issued by the State Bank of Pakistan (SBP). By examining four key dimensions institutional structures, roles and responsibilities, regulatory requirements, and oversight mechanisms 0 2 B F this paper highlights the deepening integration of Sharī ah principles into Pakistan's financial system and the progressive alignment with international standards.

Following the Global Financial Crisis of 2008-9, there has been renewed interest in the diffusion and pluralization of financial ideas and practices, and in understanding how new ideas and practices can emerge to challenge the prevalence and diffusion of dominant ones. However, existing concepts and language in the broader literature on diffusion limit our ability to analyze and assess the contestation of ideas, especially as it is sustained and transformed over time. In this paper, we develop the concept of grafting as a post-equilibrium approach to analyze the ongoing contestation of global finance at the level of market practice. We apply our conceptual framework to analyze the complex dynamics of a class of financial assets that in recent years has made significant inroads in global financial markets: sukuk, often referred to as Islamic bonds. We highlight dynamic differences in the grafting of ideas and practices from Islam and conventional finance and suggest that the grafting of sukuk is an ongoing contestation of the diffusion of global finance that contributes to the emergence of an increasingly pluralistic global economy.

The article develops a critical analysis of gendered narratives of global finance. The post-subprime crisis equation of unfettered global finance with the excessive masculinity of individual bankers is read in line with a wider gender narrative. We discuss how hetero-normative relations between men and women underpin financial representations through three historical examples: war bond advertising, Hollywood films about bankers, and contemporary aesthetic representations of female politicians who advocate for austerity. A politics emerges whereby gender is used to encompass a/the spectrum between embedded and disembedded finance, approximate to the divide betweenoikonomiaandchrematistics. The apparently desirable ‘marriage’ between the state and finance that ensues carries several ambiguities – precisely along gender lines – that point to a pervasive limit: the myth of embedded liberalism in the imagination of global finance.

Agriculture is a cornerstone of South Asia's economy and food security, yet it faces challenges such as financial exclusion and inefficiencies in traditional financing models. This study explores the potential of Mugharasah (Agricultural Certificates), a Shariah-compliant ethical financing tool rooted in Islamic finance principles like Mudarabah and Musharakah, to address these issues. Mugharasah emphasizes risksharing and equitable profit distribution, offering an alternative to interest-based loans and rigid microfinance structures. This research evaluates Mugharasah's role in enhancing financial inclusion, improving food security, and promoting sustainable agricultural practices. A mixed-methods approach, including surveys and comparative analyses, highlights Mugharasah's advantages in terms of flexibility, reduced financial burdens on smallholder farmers, and its alignment with sustainability goals. While findings reveal no significant statistical differences between Mugharasah and microfinance regarding risksharing or sustainability perceptions, Mugharasah demonstrates potential as a more equitable and performance-linked financing model.

This paper applies a formula for the optimal hedge in a mean-variance framework to an investment in the Nikkei 225. It is shown that through hedging U.S. investors can construct a portfolio long in the Nikkei whose dollar excess return has the same volatility as the yen excess return of the Nikkei. There seems to be little gain from improving estimates of the exposure of the Nikkei to the dollaryen exchange rate; in contrast, the performance of portfolios can be enhanced substantially by obtaining better forecasts of exchange rate changes.

This paper examines the impact of country risk on international portfolio investment, using alternative country risk proxies in the context of a two-factor model. Based on the Mann-Whitney-Wilcoxon test, we provide empirical evidence that international portfolios' returns contain significant country risk premiums. Specifically, we find that international portfolios provide annualized risk premiums that range from 9.4% to 26.8%. Apart from confirming the traditional wisdom that international diversification pays, the results also provide support for the notion that international capital markets are partially segmented. Our results are also unique in that risk premiums are measured in the context of the Markowitz portfolio selection model rather than the traditional asset pricing framework.

This paper examines the impact of country risk on international portfolio investment, using alternative country risk proxies in the context of a two-factor model. Based on the Mann-Whitney-Wilcoxon test, we provide empirical evidence that international portfolios' returns contain significant country risk premiums. Specifically, we find that international portfolios provide annualized risk premiums that range from 9.4% to 26.8%. Apart from confirming the traditional wisdom that international diversification pays, the results also provide support for the notion that international capital markets are partially segmented. Our results are also unique in that risk premiums are measured in the context of the Markowitz portfolio selection model rather than the traditional asset pricing framework.

Using Google searches for specific bank names, we construct the Bank Search Volume Index (BSVI) and investigate its predictive effect on banks' capital adequacy. Based on the US bank-level financial data spanning from quarter one 2004 to quarter one 2020 and employing fixed-effects panel data analysis, we find that higher BSVI predicts reductions in capital adequacy. Specifically, a one standard deviation increase in BSVI forecasts a decline in capital adequacy over the next one, four, and eight quarters of 0.016 percent, 0.018 percent, and 0.011 percent, respectively. While the short-term predictive effect of BSVI agrees with various extant studies, which typically report only transient predictive power of Google Search Volume, the long-lasting predictive impact of BSVI (quarters 4 and 8) contrasts with most. Moreover, we find that when investor concerns about economic conditions rise, as measured by the Finance Stress Index (FSI), the predictive relationship between BSVI and capital adequacy reverses, consistent with the 'flight-to-safety' phenomenon. IMPACT STATEMENT We create the Bank Search Volume Index (BSVI) using Google searches for specific bank names and study its predictive power on bank capital adequacy. We found that a higher BSVI predicts capital adequacy declines using US bank-level financial data from 2004 to 2020 and fixed-effects panel data analysis. BSVI's short-term predictive effect matches numerous studies showing that Google Search Volume is only temporarily predictive. However, BSVI's long-term predictive effect in quarters four and eight differs from most studies. When investors' economic concern rises, as measured by the Finance Stress Index (FSI), the predictive relationship between BSVI and capital adequacy reverses. Legislators, regulators, and supervisors are expected to acknowledge the importance of the internet, especially Google, in financial matters and improve their institutions' capacity to handle variations in search volume.

The urgency to address environmental degradation and climate change has placed significant pressure on financial institutions to adopt sustainable practices. As a primary facilitator of economic activity, the banking sector can mitigate its environmental impact through green banking initiatives. However, despite the increasing importance of sustainable finance, research on the trends, key contributors, and development of green banking still needs to be completed and expanded. This study addresses such issues by investigating the evolution of the green banking literature over an extended period from 1996 to 2021 to map the field's intellectual structure. Adopting an established bibliometric approach, this study uses a bibliometric analysis to identify research trends, publication patterns, key authors, and gaps in green banking. A dataset of 115 documents was sourced from the Scopus database, covering areas such as economics, finance, and environmental science. Using tools such as Harzing's Publish or Perish and VOSviewer, citation and co-authorship networks were examined along with keyword co-occurrences. The results show that green banking research has grown exponentially, with most contributions from Asia, particularly Malaysia. The analysis identified nine research clusters, highlighting key themes such as sustainable development and corporate social responsibility. Furthermore, the findings reveal limited collaboration between researchers and suggest that more crosscountry studies are needed to enhance global understanding of green banking practices. Overall, this study provides the first comprehensive bibliometric review of green banking, offering insights for researchers and policymakers into this growing field's current state and future directions.

This study investigates the concept of the Dividend Trap, a situation where investors are lured by high dividend yields only to suffer losses due to subsequent stock price declines. This research introduce the Dividend Trap Score, a practical tool for identifying potential dividend traps in stocks, and apply this tool to companies listed in the IDX High Dividend 20. Our findings reveal key indicators that can signal a potential dividend trap, offering valuable insights for both investors and traders. The study concludes with recommendations on how to mitigate the risks associated with dividend traps.

This paper explores the multifaceted relationship between board composition and firm performance in the Sultanate of Oman, with a focus on board size, board independence, and the role of Non-Executive Directors (NEDs). Drawing on data from non-financial firms listed on the Muscat Securities Market (MSM) over a decade (2012)(2013)(2014)(2015)(2016)(2017)(2018)(2019)(2020)(2021)(2022), the study employs Ordinary Least Squares (OLS) multivariate regression analysis to dissect the influence of these governance variables on a suite of financial performance metrics. The results indicate that larger board sizes are positively associated with firm liquidity, market valuation, and resilience to corporate failure, as evidenced by significant relationships with the current ratio, Tobin's Q, and Altman's Z score. In contrast, smaller boards are linked to higher profitability margins. The study also finds that the presence of NEDs has a positive and significant impact on firm performance, particularly in terms of liquidity, firm value, and risk management, challenging the traditional view that board independence is a primary driver of firm success. By contributing to the theoretical discourse on corporate governance, this research offers practical insights for corporate managers, investors, and policymakers in Oman and similar economies. It suggests that an optimal board composition is contingent upon the specific performance objectives of a firm and underscores the importance of strategic board structuring in enhancing firm performance. The study provides a foundation for future research in the field of corporate governance, emphasizing the nuanced roles of board size, independence, and NEDs in shaping firm outcomes.

Under the current global forces, economics muddled with politics is exerting undue pressures on the BRICS countries and is challenging the sustainability of their accord. Unanticipated problems are increasingly inhibiting economic and social prosperity. This paper analyzes the current difficulties that the BRICS are facing, scrutinizes their unique individual economic and political environments, and ventures to anticipate their prospects. Our consensus is that the future prosperity of these countries depends not only on their individual political and economic environments, but also on the major global powers. Furthermore, the current inevitable interconnectivity of politics and economics provides foresight into their future role on the world stage.

During the past decade we have witnessed a great deal of changes, many triumphs and tragedies. We have seen the rush to privatization and marketization of many centrally-planned economies, removal of trade barriers, trade pacts and economic unions, to integration of financial markets. Some of these changes have had dramatic impacts on the financial community and global economy. New technologies-especially in computers, electronics, and communications-have changed the global economy's landscape. The impact of such changes will be even more dramatic in the future. The Internet and multimedia have and are putting their marks on almost everything including, banking and financial services, education, marketing, engineering, sciences, medical technology, geography, art, and even zoology. We have witnessed financial crises, monetary and otherwise, that are so rampant all over the world, from Chile, to Mexico, to the Asian Tigers: Thailand,

This paper presents an analysis of the 2007-2010 Global Financial Crisis which started with the sub-prime crisis in the U.S. and became global very fast. It argues that the financial system in the United States is a complex interlocking structure of markets, institutions and regulators. The causes and culprits of the crisis, the misaligned incentives of participants and exogenous events such as the wars in Afghanistan and Iraq, precipitated failure in key markets: commodities, sub-prime housing, equities, and credit. One of the strategic consequences of this crisis is that the US will lose its dominance in world power, the frequent crises and vulnerabilities of the Neoliberalism and examines the future of capitalism. Of the alternatives to economic system, the capitalism is the most viable economic system. However, it must adopt real and efficient allocation of resources to maximize welfare of all parties and seriously address the income inequality. It must reject crony capitalism, enact true financial regulation of institutions and markets, end corporate socialism and address the system's structural deficiencies.

Under the current global forces, economics muddled with politics is exerting undue pressures on the BRICS countries and is challenging the sustainability of their accord. Unanticipated problems are increasingly inhibiting economic and social prosperity. This paper analyzes the current difficulties that the BRICS are facing, scrutinizes their unique individual economic and political environments, and ventures to anticipate their prospects. Our consensus is that the future prosperity of these countries depends not only on their individual political and economic environments, but also on the major global powers. Furthermore, the current inevitable interconnectivity of politics and economics provides foresight into their future role on the world stage.

The study aimed to investigate firm decisions of using interest rate derivatives and factors affecting this decision. Study is conducted by selecting data of 191 non-financial sector companies listed on PSX from 2010 to 2015. Logit model was employed to detect contribution magnitude of foreign sales, profitability, leverage, liquidity, price to earnings, interest coverage ratio and dividend payout towards decisions by a firm of using the interest rate derivatives. The expected users of interest rate derivatives for purpose of interest rate exposure management were the firms with high foreign sales, lesser leverage, low profits, low dividend payout ratio and low interest coverage ratio. The examination concludes that these derivatives are financial engineering tools and serve as immunization instruments for a firm from anticipated future financial risk.

Behavioural finance theories contend that market anomalies, driven by human biases and heuristics, link liquidity to investor sentiment in asset markets. The irrational investor underreaction increases liquidity and explains the time-series relationship between liquidity and market returns. Based on data from the Colombo Stock Exchange (CSE), this study examines the extent to which market-wide illiquidity and sentiment proxied by turnover measure can forecast the short-term expected returns of the frontier market Sri Lanka during the period 2010-2021, using OLS time series regression methodology. Research findings show that investor sentiment proxied by turnover is positively related to expected market returns, contrary to the observations based on the US market. Regression estimates indicate that expected illiquidity significantly negatively impacts expected returns in a value-weighted specification. Unexpected illiquidity shocks depress the contemporaneous market returns. Small-cap stock returns show greater sensitivity to market illiquidity indicating that they face greater illiquidity risk compared to large-cap stocks. These findings offer insight into how investor sentiment can influence market liquidity and the impact of liquidity risk pricing on market returns over time in a frontier market.

This paper reports the empirical results of a questionnaire survey about corporate dividend policy addressed to finance directors of UK and Portuguese listed firms. Similar to other studies (for example, Brav et al., 2005 in the US and Dhanani, 2005 in the UK), we survey 313 finance directors in the UK and 48 in Portugal to examine their views of and understanding about the dividend decision in order to compare practice with theoretical propositions to be found in the literature and to examine cross-country determinants of dividend policy. Our survey results demonstrate similarities in the responses from the UK and Portugal, but also substantive differences, particularly in respect of the interaction between dividend and investment decisions and views about the signaling consequences of dividends.

Summary: The article analyses the protests against the Corona measures in German cities through their affective and narrative claims. Building on field research conducted during the rallies in Hamburg and the large demonstrations in Berlin, it carves out the narrative of a »great awakening« resonating in rightwing, spiritual and QAnon milieus. This narrative suggests an apolitical subjectivity that is in sharp contrast to the antiracist and climate activist struggles of our times.

This study investigates how global stock markets are integrated with respect to the U.S. macroeconomic news announcements. Although both investors on U.S. and non-U.S. stock markets are interested in those news releases their general importance to stock market investors can be expected to vary across economic regions as a result of differences in dependence on international trade, size of the market, foreign ownership and the industrial and economic structures. To investigate this issue we analyze the behavior of GARCH volatilities around ten important scheduled U.S. macroeconomic news announcements on 35 local stock markets that are divided in six regions. The results show that the G7 countries, the European countries other than G7 countries, developed Asian countries and emerging Asian countries are closely integrated with respect to the U.S. macroeconomic news, while Latin America and Transition economies are not affected by U.S. news. These results support the earlier findings, such as Bekaert and Harvey [Bekart, G. and Harvey, C., 1995, Time varying world market integration, Journal of Finance 50, 403-444.] and Rockinger and Urga [Rockinger, M. and Urga, G. 2001. A time-varying parameter model to test for the predictability and integration in the stock markets of Transition economies, Journal of Business and Economic Statistcs 19,[73][74][75][76][77][78][79][80][81][82][83][84], that the market integration is high among the major stock markets while some emerging markets are segmented. This implies that the international investors are able to obtain diversification benefit by investing in those segmented emerging regions.

We study the impact of changes in sovereign ratings and outlooks on international capital markets using a comprehensive database of 34 countries, covering the major regions in the world over the period 1990-2000. We find the rating agencies provide financial markets with new tradable information. Specifically, they affect not only the instrument being rated (bonds) but also stocks. Interestingly, bond markets react differently than stock markets in many respects. We find, only for bond market returns, a positive impact is significant when the economic outlook is upgraded and outlook changes appear to be at least as important as rating changes. In addition, downgraded ratings and economic outlooks occur mainly during bond market downturns, raising a possibility that rating agencies may exacerbate a bond bear market. Only downgrade has a discernible impact on equity and bond returns and the effects of rating announcement are significantly asymmetric. On equity returns, the market responses of downgrade are more pronounced in the cases of high inflation, low fiscal balance, and local currency debt; in contrast, the market responses of downgrade across class are more pronounced in the cases of low current account and foreign currency debt. On bond returns, the market responses of downgrade are more pronounced in the cases of a relatively ailing economy as proxied by emerging market, high inflation, and low current account; on the other hand, the market responses of downgrade across class are more pronounced in the cases of a relatively healthy economy as proxied by low inflation, high liquidity, and during non-crisis period. This study has important implications for investors' international asset allocation and for regulatory agents such as the Basel

We empirically test whether the change in minimum stock price variation (shifting from the eighth to sixteenth) in the late 90s in NYSE, followed by a system of full decimalization had any significant price improvement on the American Depository Receipts (ADRs). The trade data for August 1996 and August 1997 were included in the sample. Twenty-one trading days were selected in each year. Trades for each day in 1996 were matched with trades for each day in 1997. Price improvements were calculated before the change in minimum variation and after. The data was processed through a multi-stage filtering process: retrieve and filter raw data, match trades with quotes, calculate price improvements, perform paired t-tests, analyze the data and distribution graphs. The results did not reveal any consistent pattern of price improvement in the case of ADRs. Changing the minimum variation of stock pricing from 1/8 to 1/16 of a US dollar appears to have affected price improvement in almost 50% of the ADRs under analysis. No statistically significant connection is determined between the minimum price variation of ADRs and price improvement.

The combined economies of Brazil, Russia, India and China (BRICs) appear likely to become the largest global economic group by the middle of this century. Our paper summarizes the features of each economy that justify this forecast, and highlights some of the country-specific obstacles that could prevent its realization. Specifically, we contribute an analysis of the relative difficulty of doing business within each country and discuss how this, combined with a lack of long-term conditions to promote growth, affects the potential of these markets to lead the future world economy.

In a globalized economy, multinational enterprises (MNEs) engage in significant intercompany trade between related corporate entities, and there are usually no transactions between unrelated firms that are comparable to these related intercompany transactions. Furthermore, intercompany trade is between two corporate entities subject to different tax rates and regulations regarding international transactions. Given these differences, there are incentives for MNEs to manipulate the transfer prices of international transactions in order to control the geographic distribution of their profits. These issues have been examined extensively by Rugman and Eden (1985), , . Of course, there are diverse explanations for the existence of MNEs. Economic rents generated by opportunistic transfer pricing are unlikely, by themselves, to provide a sufficient rationale for the existence of an MNE. Rather, firms engage in foreign direct investment (FDI) because of other types of market imperfections. In particular, explanations of FDI cite both the market power enjoyed by firms in oligopolistic industries and the use of FDI as a strategic alternative to internalize transaction costs associated with market-based trade or licensing transactions. As

Previous "country risk" research concerning developing countries' difficulties in servicing their external debt has not included analyses of the period since the early 1980s. This is troublesome in light of significant economic changes since those studies were conducted; in particular, many of the largest and most heavily indebted developing countries have undertaken stabilization and structural reform programs, partly in order to improve their creditworthiness with foreign banks and international financial institutions. In addition, although it is widely agreed that political conditions, including political instability in particular, are important factors in countries' creditworthiness (Kennedy, 1987; Grosse, 1985), few empirical analyses of the effects of political factors on creditworthiness have been performed. This paper, therefore, tests traditional economic models of country risk on data for the late 1980s to determine if those models still have predictive power, despite the important changes in the world economy and in the economies of many of the borrowing countries during the 1980s. The paper also incorporates variables reflecting several different types of political instability to determine whether they add predictive power to the economic models. Our interest is in the risk of payment interruption by developing countries on their external debt. Therefore, we abstract from many other equally important types of country risk and focus only on that faced by a "hard currency" lender to a developing country. The next section of the paper reviews the studies on country risk, including both the studies that rely exclusively on economic conditions as predictive variables and the few studies that include political variables; in addition, studies of political risks associated with foreign direct investment are briefly reviewed because of their greater attention to the diverse types of political instability. Following the review of the literature, the paper discusses the research design, with special reference to the several measures of political instability that have been incorporated in the models, as well as the economic variables that have been

courages the development of financial institutions and instruments. Beyond that, by modifying the price structure and allocation mechanisms of real and financial resources, this form of government intervention transforms the decision making process on almost every level of the economy. Financial repression also influences financial decision making by firms. For example, managers shape a firm's financial structure under the influence of a complex set of factors that include riskiness of cash flows, growth potential, tax shields, agency costs, and the state of financial

courages the development of financial institutions and instruments. Beyond that, by modifying the price structure and allocation mechanisms of real and financial resources, this form of government intervention transforms the decision making process on almost every level of the economy. Financial repression also influences financial decision making by firms. For example, managers shape a firm's financial structure under the influence of a complex set of factors that include riskiness of cash flows, growth potential, tax shields, agency costs, and the state of financial