This investigation analyses the academic research development over the last 30 years on behavioural finance in the emerging markets. We use Web of Science database to collect the bibliographic material and a VOS Viewer software to identify similarities by using bibliometric techniques. The results show a significant growth of research in this area, especially after the subprime crisis and highlights the emergence of sub areas of interest to researchers which have arisen in a natural fashion and without a previously defined orientation. There is still no consensus in the literature regarding the causes of this phenomenon and new questions emerge to expand research on herd behaviour in the emerging markets.
This paper documents the relationship between advertising expenditures and stock prices. Using the data of non-financial firms from India, the paper shows that advertising expenditures of a firm are sensitive to its own stock prices and to stock prices of its peer firms during the period between 2000 and 2021. These findings remain qualitatively the same when we use different estimation procedures. The paper also shows that the relationship between advertising expenditures and stock prices depends on the level of product market competition. This relationship becomes more pronounced as product competition increases.
The COVID-19 pandemic affected all countries both in social and economic dimensions. Currently, vaccination is considered to be one of the most efficient solutions which can stop the further spread of the virus. Therefore, the paper aims to understand the factors that determined the social approval of the COVID-19 vaccines in Romania. To get a detailed picture on the situation, we looked not only at economic variables, but also at social and demographic components. Accordingly, the findings of the analysis list the variables that significantly influence the vaccination rate nationwide. The social approval (or the refusal) of these shots is a complex issue, thus it is essential that policymakers make decisions based on scientific evidence. The practical relevance of the paper lies in the two policy implications suggested (i.e., transparent and predictable policymaking and adjustments on the level of the education system in the long run for similar situations), which also highlight the importance of evidence-based decision-making processes in public health. Our analysis method consists of multivariate cross-sectional OLS regressions.
The paper addresses the problem of inflation measurement and the way it is affected by the choice of CPI weights. We focus on the bias resulting from using weights reflecting the past structure of consumption and the choice of the plutocratic index. The study is based on a comparison of the official consumer price index in Poland with superlative indices. Contrary to most literature, our findings indicate an understatement of the CPI. Additionally, in 2020 due to large changes in the pattern of household consumption, the underestimation increased. This results from the increase in the expenditure on the relatively more expensive goods which could not be accounted for in real time. In general, the lack of overstatement in the Polish CPI may result from frequent adjustments in the weights used for the calculation of CPI and a faster-than-CPI rise in the prices of those goods and services for which demand is relatively inelastic. Additionally, we deliver the estimates of the plutocratic gap, which indicates that the use of the plutocratic weights in the calculation of CPI leads to a lower price index than its democratic equivalent.
Micro-level risk awareness affects macro-level financial stability as well. Thus, the corporate risk management practice impacts the exposures and the potential fragility of an economy. While corporate risk management is accepted to create value in an imperfect market, the effect of the firm size is not straightforward. Smaller, financially constrained firms can benefit more by engaging in risk management programs, but larger corporations face more complex risks and have more resources for this activity. Empirical studies on risk management focusing mainly on the US market, highlight a positive relation between the firm size and the quality of risk management that includes not just the hedging of financial risks, but the concept of integrated risk management as well. The aim of this paper is two-fold: first, to summarize the existing literature on corporate risk management with a special focus on the effect of corporate size; second, to contribute to the existing literature by investigating a Central European market, Hungary. The findings are similar to those of the existing global literature, as derivatives usage, and applications of an integrated risk management concept increase with firm size. Although all firms in the sample manage their foreign exchange risk, interest rate hedging and more sophisticated derivatives, like options, are much less widespread in Hungary, compared to the US and Asian peers. The size effect is proven for the objective criteria of risk management quality by comparative analysis and a structured modelling framework, however, the subjective self-evaluation was uncorrelated to the size.
This paper shows how the three economic policy uncertainties (EPUs), namely global economic uncertainty, US economic policy uncertainty and German economic policy uncertainty, impact the industrial production of 8 Central and Eastern European countries. The investigation is done in both time and frequency domains, using the wavelet coherence and wavelet correlation approaches. The US EPU has the strongest effect on all industrial productions, while this effect was recorded during the global financial crisis and the corona virus pandemic. The most intense effect was found in the time-horizon between 4 and 8 months. The Czech Republic and Hungary suffer the strongest impact from EPU, probably because these two economies have relatively high ratio of export (import) vis-à-vis GDP. We fail to find very strong and wide areas of coherence in the Slovakian plot, although Slovakia has the highest level of export (import) to GDP. However, the wavelet correlation findings indicate that Slovakia has relatively high negative correlation at third wavelet scale, which is perfectly in compliance with its high export (import) share in GDP.
This paper examines the effect of factors of national competitiveness measured by the Global Competitiveness Index (GCI). It aims to identify the key factors that determine GCI of the European Union (EU-28) countries. We observe the composite indicator of GCI and the 12 factors of competitiveness in the period of 2008–2019 focusing on the links between the GCI and the factors of institutions, infrastructure, macroeconomic environment and its stability and market size. The GCI is determined using correlation and regression analyses and Structural Equation Model. A significantly positive relationship with the GCI is confirmed for institutions, infrastructure, macroeconomic environment and stability, labour market efficiency, market size, technological readiness in terms of information and communication technologies, and business sophistication and dynamism, but not for higher education and training and financial market development. The quality institutions are confirmed as a fundamental positive factor for the GCI together with macroeconomic environment and stability and market size. The study contributes with an empirical analysis that confirms the relationship between the selected factors of competitiveness and the GCI in the EU-28 countries.
I examine the relationship between the internationalisation of family firms and innovation. After the review of the relevant literature, I group together the narrow research topics addressed in the literature, which largely confirm the positive relationship between the two categories. Moreover, I demonstrate a theoretical framework which, according to the literature, can be implemented to put socio-emotional welfare and entrepreneurial orientation, which are restraining the internationalisation of family firms, on a common path, so that they can contribute to enhancing the innovative and international performance of family firms in a mutually supportive way.
The paper takes a special perspective to summarise what researchers have revealed on global value chains in Hungary. The ‘space-time’ structure is how the ‘force field’ of the amount of value added is shared and how the process it creates characterises specific global value chain networks. There is a growing literature that reveals the ‘dents’ of the GVC force field: the uneven distribution of value-added content, and mainly the controversial possibilities to upgrade in the network. Hungary is a typical example of a semi-peripheral or integrated periphery country. The paper discusses the lessons of different global value chain relations of the country in different geographical environments in terms of the two dimensions of ‘space’ and ‘time’; that is the potential and structure of value added and its dynamics, as well as compares them through an automotive industry case study.
This paper investigates Hungary's inflationary exposures to global price movements using a simple cost-push input-output price model and a database of inflation-to-output price elasticities (Global Inflation-to-Output Price Elasticity Database, GIOPED) developed on the basis of the OECD's Inter-Country Input-Output Tables. Inflation elasticities are decomposed into local, simple, and complex global value chain effects by applying Wang's decomposition scheme (Wang et al. 2017) to price movements and inflation. Our empirical analysis based on GIOPED elasticities shows that Hungary is highly exposed to global value chain price transmissions originating in Germany, Austria, and Russia; and in particular to changes in energy prices. The crude oil and natural gas price boom and the resulting energy crises caused a significant increase in consumer price levels in Hungary; however, this explains only a fraction of current inflation rates.