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Economic and Financial Implications of COVID-19
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Economic and Financial Implications of COVID-19

A special issue of Journal of Risk and Financial Management (ISSN 1911-8074). This special issue belongs to the section "Economics and Finance".

Deadline for manuscript submissions: closed (30 June 2023) | Viewed by 123093

Special Issue Editors

Dr. Irena Jindřichovská

E-Mail Website
Guest Editor
Department of Financial Management, Metropolitan University Prague, Prague, Czech Republic
Interests: accounting; corporate finance; international trade; sustainability
Special Issues, Collections and Topics in MDPI journals
Dr. Anna Białek-Jaworska

E-Mail Website
Guest Editor
Department of Banking, Finance, and Accounting, Faculty of Economic Sciences, University of Warsaw, 00-921 Warsaw, Poland
Interests: corporate finance; business economics; taxation; accounting; innovation economics
Dr. Mihaela Mocanu

E-Mail Website
Guest Editor
Department of Accounting and Auditing, Bucharest University of Economic Studies, 010374 Bucharest, Romania
Interests: risk disclosure; sustainability disclosure; financial audit
Prof. Dr. Erginbay Uğurlu

E-Mail Website
Guest Editor
Department of International Trade, Istanbul Aydın University, 34295 İstanbul, Turkey
Interests: times series econometrics; panel data econometrics; financial econometrics; energy economics

Special Issue Information

Dear Colleagues,

Before the COVID-19 crisis there was a relatively long period of economic stability and prosperity. Countries and established trading blocs more or less aspired to reach some stage of sustainable development. With the abrupt arrival of COVID-19, the situation has changed sharply and unexpectedly. Measured mainly through the protection of their inhabitants, some countries reacted to this shock more successfully than others. There is no doubt that the impact of COVID-19 will be damaging for economies, and therefore a push for innovative solutions to get out from the slowdown is anticipated.

In this Special Issue, we want to encourage scholars to look into problems of society from different, not only economic, perspectives. We want to explore the damaging effect of COVID-19 on economies, companies, municipalities (acting under fiscal constraints of debt capacity), and sectors. Additionally, we want to explore paths to recovery and the new opportunities that this crisis brings to our (as we believed) already very developed civilization.

This Issue is especially interested in the topic of financial stability in developed and emerging economies. The questions of following sustainable goals as announced in 2015 and the regime of crisis and recovery in SMEs and big multinationals are also of our concern. Furthermore, we are interested in information disclosures of firms and subsequent related market reactions.

We invite authors to contribute original research articles in theory and practice. All submissions must contain original unpublished work not being considered for publication elsewhere. Submissions are also open to scholars and participants of the conference IFRS Global Rules and Local Use—Beyond the Numbers 2021 organized jointly by the Metropolitan University Prague and the Anglo-American University in Prague.

Dr. Irena Jindřichovská
Dr. Anna Białek-Jaworska
Dr. Mihaela Mocanu
Prof. Dr. Erginbay Uğurlu
Guest Editors

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Journal of Risk and Financial Management is an international peer-reviewed open access monthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 1400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • emerging economies 
  • sustainable goals 
  • SMEs and multinationals 
  • crisis and recovery 
  • information disclosure 
  • market reaction 
  • government measures 
  • health care system

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Published Papers (22 papers)

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Research

10 pages, 424 KiB  
Article
Financial Well-Being and Financial Capability among Low-Income Entrepreneurs
by Baorong Guo and Jin Huang
J. Risk Financial Manag. 2023, 16(3), 181; https://doi.org/10.3390/jrfm16030181 - 8 Mar 2023
Cited by 7 | Viewed by 5794
Abstract
Financial well-being is a key component of quality of life and overall well-being and is likely to affect other aspects of quality of life, such as health and health care. The COVID-19 pandemic presents an immense crisis of financial well-being among low-income entrepreneurs [...] Read more.
Financial well-being is a key component of quality of life and overall well-being and is likely to affect other aspects of quality of life, such as health and health care. The COVID-19 pandemic presents an immense crisis of financial well-being among low-income entrepreneurs and has left many small-scale entrepreneurs financially fragile. We argue that promoting the financial capability of low-income entrepreneurs is effective in protecting their financial well-being from a crisis. To examine the association between financial capability and the financial well-being of low-income entrepreneurs, we use the 2016 National Financial Well-Being Survey, which provides the latest and comprehensive measurement of financial capability, including financial knowledge, financial skills, and access to financial products and services. Our analyses show that, compared to their higher-income counterparts, low-income entrepreneurs have statistically lower levels of financial well-being, financial knowledge, financial skills, and access to mainstream financial products; they also have a statistically higher risk of using high-fee alternative financial products. In addition, low-income entrepreneurs have larger barriers to accessing mainstream financial products than low-income non-entrepreneurs. The results indicate that financial capability plays a significant role in promoting the financial well-being of low-income entrepreneurs. Full article
(This article belongs to the Special Issue Economic and Financial Implications of COVID-19)
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16 pages, 457 KiB  
Article
Syrian SMEs in Times of COVID-19 Pandemic: Challenges, Adaptation, and Policy Measures
by Bana Abdulmajid Akkad and Sulaiman Mouselli
J. Risk Financial Manag. 2023, 16(3), 142; https://doi.org/10.3390/jrfm16030142 - 21 Feb 2023
Cited by 3 | Viewed by 3718
Abstract
SMEs constitute the backbone of the Syrian economy and have suffered manifold challenges due to the continuous Syrian war. COVID-19 added further pressures on Syrian SMEs and forced them to take certain adaptation strategies to survive. This paper aims to investigate the main [...] Read more.
SMEs constitute the backbone of the Syrian economy and have suffered manifold challenges due to the continuous Syrian war. COVID-19 added further pressures on Syrian SMEs and forced them to take certain adaptation strategies to survive. This paper aims to investigate the main challenges that face Syrian SMEs during the pandemic and illustrate how they respond to adversities that emerged from governmental intervention to control the spread of the virus. It also discusses the measures initiated by the government to support SMEs during the pandemic. Through interviewing persons from the Syrian SMEs’ ecosystem, we find that high interest rates on SMEs’ loans decline on demand as well as high inflation represent the main challenges. SMEs respond to these challenges by marketing products online, stock procurement, and strengthening connections with stakeholders. We recommend the Syrian authorities reduce lending rates and increase loan sizes available to SMEs to help them overcome the pandemic adversities. Innovative sources of funding, such as venture capital and equity partnerships, could reduce the funding costs of SMEs. Moreover, SMEs will immensely benefit from training in digital tools to enhance their expansion and survival opportunities. Furthermore, bazaars should be organized during the year to give SMEs the opportunity to gain continuous access to markets. In addition, incubation services should be revised, particularly to SMEs with great potential to grow, to create the suitable environment for them to scale and flourish. Full article
(This article belongs to the Special Issue Economic and Financial Implications of COVID-19)
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17 pages, 308 KiB  
Article
Do Foreign Investment Flow and Overconfidence Influence Stock Price Movement? A Comparative Analysis before and after the COVID-19 Lockdown
by Citra Sukmadilaga, Almaida Noor Fitri and Erlane K. Ghani
J. Risk Financial Manag. 2023, 16(1), 5; https://doi.org/10.3390/jrfm16010005 - 23 Dec 2022
Cited by 1 | Viewed by 3033
Abstract
This study examined whether foreign investment flow and overconfidence can influence stock price movement among the publicly listed companies in Indonesia. Subsequently, this study determined whether there was any significant difference in the influence of foreign investment flow and overconfidence on stock price [...] Read more.
This study examined whether foreign investment flow and overconfidence can influence stock price movement among the publicly listed companies in Indonesia. Subsequently, this study determined whether there was any significant difference in the influence of foreign investment flow and overconfidence on stock price movement before and after the COVID-19 lockdown in Indonesia. This study focused on the manufacturing companies listed on the Indonesian Stock Exchange for the 2020 period of which the data were taken in a period of 10 days before and 10 days after the implementation of the COVID-19 lockdown in Indonesia. Using content analysis on secondary data, this study showed that there was a significant difference between the stock prices before and after the COVID-19 lockdown. However, this study showed that foreign investment flow and overconfidence were not the main factors influencing stock price movement before and after the lockdown. The findings indicate that there are other factors that contribute to stock price movement in Indonesia. This study contributes to the existing literature on whether foreign investment flow and overconfidence influence stock price movement in a pandemic world. Full article
(This article belongs to the Special Issue Economic and Financial Implications of COVID-19)
21 pages, 2482 KiB  
Article
The Uneven Short-Run Effects of the COVID-19 Pandemic on Foreign Direct Investment
by Roxana Wright and Chen Wu
J. Risk Financial Manag. 2022, 15(10), 468; https://doi.org/10.3390/jrfm15100468 - 17 Oct 2022
Cited by 1 | Viewed by 3107
Abstract
This study examines short-run economic and business impacts of the COVID-19 pandemic as a global disruption event. The purpose is to build propositions about specific subnational FDI (Foreign Direct Investment) developments in the short-term of global disturbance. We approach the investigation by reviewing [...] Read more.
This study examines short-run economic and business impacts of the COVID-19 pandemic as a global disruption event. The purpose is to build propositions about specific subnational FDI (Foreign Direct Investment) developments in the short-term of global disturbance. We approach the investigation by reviewing FDI outcomes in the year prior and in the first year of the pandemic, at the U.S. national and subnational levels, and through the lens of local characteristics and FDI outcomes in the state of New Hampshire. Our methods include distribution and frequency analyses on two sets of data: secondary data on FDI and trade at the state level, and primary data as direct observations on firm activities in New Hampshire. Our leading method is the evaluation of data aimed at triangulating and consequently generating a set of propositions that explain phenomena observed in relation to short-term effects of disruption. Our methodological tools consist of an in-focus instance of the phenomena in one state, as a particular case for verifying the validity of our propositions, and comparisons with available data across states to establish the reliability of the proposed consequences. Our analysis provides evidence for subnational heterogeneity of global disruption impact. Our interstate trend analysis and unique data on FDI-related activities in New Hampshire reveal how foreign businesses respond to the external shock of global disruption in the short-run. We use our insights to propose that established regional supply chains and differences in local advantages determine varying FDI outcomes across subnational locations. As a result, we set forth three calls-to-action for regional policymakers: the development of initiatives to support strong trade and FDI-outcomes at all times and in preparation for global disruption; the promotion and facilitation of firms’ access to markets; and the implementation of actions that encourage the establishment of regional supply chains. Full article
(This article belongs to the Special Issue Economic and Financial Implications of COVID-19)
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18 pages, 365 KiB  
Article
Firm Performance during COVID-19 Pandemic: Does Ownership Identity Matter? Evidence from Indonesia
by Dian Perwitasari, Doddy Setiawan, An Nurrahmawati and Isna Putri Rahmawati
J. Risk Financial Manag. 2022, 15(10), 444; https://doi.org/10.3390/jrfm15100444 - 30 Sep 2022
Cited by 8 | Viewed by 3819
Abstract
This study aimed to examine the importance of shareholder identity in improving company performance during shock events such as the COVID-19 pandemic. The outbreak poses threats and opportunities for businesses in various countries including Indonesia. Subsequently, companies must adapt to address the consequences [...] Read more.
This study aimed to examine the importance of shareholder identity in improving company performance during shock events such as the COVID-19 pandemic. The outbreak poses threats and opportunities for businesses in various countries including Indonesia. Subsequently, companies must adapt to address the consequences of the economic disruption and lockdown policies imposed by the local government. The study sample comprised companies listed on the Indonesia Stock Exchange (IDX) during the COVID-19 pandemic from 2020 to 2021. Fixed effects model regression was employed to examine the effect of family, government, and institutional ownership on company performance. The results showed that family and institutional ownership positively affected company performance during the pandemic. The mechanisms of direct supervision and control by family members could potentially increase the benefits of their businesses. Furthermore, high institutional ownership makes the role of investors substantial in reducing business risk and increasing company performance. Furthermore, the results revealed that government ownership negatively affected company performance. As owners, the government has different strategic objectives, where companies are more oriented toward better public services than financial gains. Therefore, it is essential to consider the impact of shareholder involvement on company performance, especially during a pandemic because they are treated differently. The research suggests that organizations are responding and adapting to the uncertainties in the business environment they face through a variety of mechanisms, including developing public and corporate governance strategies to prepare for and respond to future emergencies. Full article
(This article belongs to the Special Issue Economic and Financial Implications of COVID-19)
14 pages, 315 KiB  
Article
Impact of the COVID-19 Pandemic on EU Convergence
by Josef Abrhám and Milan Vošta
J. Risk Financial Manag. 2022, 15(9), 384; https://doi.org/10.3390/jrfm15090384 - 26 Aug 2022
Cited by 7 | Viewed by 3113
Abstract
The effects of the COVID-19 pandemic were global and led to an economic decline in most countries of the EU. The development and values of economic indicators varied from country to country and showed significant regional differences. The study evaluates the coverage of [...] Read more.
The effects of the COVID-19 pandemic were global and led to an economic decline in most countries of the EU. The development and values of economic indicators varied from country to country and showed significant regional differences. The study evaluates the coverage of selected economic indicators in the Member States of the EU in the period 2010–2020. The analytical part is based on empirical statistical data. As a methodological procedure for testing the convergence of the EU, we compared the results of the coefficient of variation of GDP per capita in PPP and the unemployment rate. The findings of this study confirm the predicted development trends. The pandemic has reversed major convergence trends. Divergence within the EU was affected by a lower decline in GDP in the developed countries of the EU. The tendencies of social disparities in the unemployment rate were different from the development of the coefficient of variation of GDP per capita. The first year of the pandemic marked a decline in disparities between the countries of the EU. For future research, we recommend monitoring the development of convergence in the next pandemic period. Full article
(This article belongs to the Special Issue Economic and Financial Implications of COVID-19)
25 pages, 20706 KiB  
Article
Spatial Analysis and Modeling of the Housing Value Changes in the U.S. during the COVID-19 Pandemic
by Xinba Li and Chihwa Kao
J. Risk Financial Manag. 2022, 15(3), 139; https://doi.org/10.3390/jrfm15030139 - 15 Mar 2022
Cited by 9 | Viewed by 4889
Abstract
COVID-19 has affected almost all sectors of the economy, including the real estate markets across different countries in the world. A rich body of literature has emerged in analyzing real estate market trends and revealing important information. However, few studies have used a [...] Read more.
COVID-19 has affected almost all sectors of the economy, including the real estate markets across different countries in the world. A rich body of literature has emerged in analyzing real estate market trends and revealing important information. However, few studies have used a spatial perspective to investigate the impact of COVID-19 on property values. The main purposes of this study are as follows: (1) to explore the spatial distribution and spatial patterns of housing price changes during the COVID-19 pandemic crisis in the U.S. real estate market and (2) to model the spatially nonstationary relationships between the housing price change and COVID-19 characteristics. We find that housing price changes differ across space and appear associated with the spatial distribution of the COVID-19 case rates. The housing market volatility is amplified by the uneven distribution of some socioeconomic factors. The spatially uneven housing price changes may bring an uneven spillover effect to the rest of the economy and lead to divergence in economic growth across different areas. Full article
(This article belongs to the Special Issue Economic and Financial Implications of COVID-19)
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17 pages, 1007 KiB  
Article
From Fragility to Resilience—How Prepared Was the Romanian Business Environment to Face the COVID-19 Crisis?
by Suzana Demyen
J. Risk Financial Manag. 2022, 15(2), 59; https://doi.org/10.3390/jrfm15020059 - 27 Jan 2022
Cited by 4 | Viewed by 3342
Abstract
The issue of business resilience is a topical one, in the context of which a large number of the companies on the market have faced many challenges in the last two years, raising the issue of market survival. But was the Romanian business [...] Read more.
The issue of business resilience is a topical one, in the context of which a large number of the companies on the market have faced many challenges in the last two years, raising the issue of market survival. But was the Romanian business environment ready to face the COVID-19 crisis? How prepared is it to continue to face the obstacles posed by the pandemic? The purpose of this paper is to identify the main effects that the pandemic has generated on Romanian SMEs, while presenting the results of a study on this topic. We proceeded to determine the level of familiarity of respondents on the evolution of SMEs during the pandemic and the study of their level of interest, on the effects generated by the current epidemiological context, and on the evolution of the business environment, while analysing the level of optimism/pessimism of the respondents, regarding the general evolution of the Romanian business environment. Although some companies are open to implementing change, there is also a significant percentage of firms that, for various reasons, do not consider making major changes in the near future, either because they are not aware of the need for change or out of fear. Full article
(This article belongs to the Special Issue Economic and Financial Implications of COVID-19)
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20 pages, 1358 KiB  
Article
Effect of COVID-19 on International Trade among the Visegrad Countries
by Erginbay Ugurlu and Irena Jindřichovská
J. Risk Financial Manag. 2022, 15(2), 41; https://doi.org/10.3390/jrfm15020041 - 19 Jan 2022
Cited by 17 | Viewed by 5111
Abstract
The impact of the COVID-19 pandemic has been detrimental to all countries, despite the continuous efforts of governments on all continents to attempt to mitigate its damaging effects. All economic and social indicators have worsened. This study explores the impact of COVID-19 on [...] Read more.
The impact of the COVID-19 pandemic has been detrimental to all countries, despite the continuous efforts of governments on all continents to attempt to mitigate its damaging effects. All economic and social indicators have worsened. This study explores the impact of COVID-19 on international trade among the Visegrad Four (V4) countries. We employ data from Eurostat and FRED to explore this influence, using the monthly import and export data for the 2010 M1–2021 M4period. We estimate the trade model for each member country of the V4, exploring their trade relations with other V4 members. We employ a shift dummy and impulse dummy to show the effect of country lockdowns initiating possible structural change. After exploration, we found that the COVID-19 impact was evident in all countries, but not with the same strength. Looking outside the V4 group, we can also see that there are strong trade relations with Germany, which is the strongest European economy. For further exploration, we suggest investigating these outside links to complete the picture. Full article
(This article belongs to the Special Issue Economic and Financial Implications of COVID-19)
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19 pages, 1683 KiB  
Article
GARCH (1,1) Models and Analysis of Stock Market Turmoil during COVID-19 Outbreak in an Emerging and Developed Economy
by Budi Setiawan, Marwa Ben Abdallah, Maria Fekete-Farkas, Robert Jeyakumar Nathan and Zoltan Zeman
J. Risk Financial Manag. 2021, 14(12), 576; https://doi.org/10.3390/jrfm14120576 - 1 Dec 2021
Cited by 20 | Viewed by 7304
Abstract
COVID-19 pandemic has led to uncertainties in the financial markets around the globe. The pandemic has caused volatilities in the financial market at varying magnitudes, in the emerging versus developed economy. To examine this phenomenon, this study investigates the impact of COVID-19 pandemic [...] Read more.
COVID-19 pandemic has led to uncertainties in the financial markets around the globe. The pandemic has caused volatilities in the financial market at varying magnitudes, in the emerging versus developed economy. To examine this phenomenon, this study investigates the impact of COVID-19 pandemic on stock market returns and volatility in an emerging economy, i.e., Indonesia, versus developed country, i.e., Hungary, using an event-study approach methodology utilizing GARCH (1,1) model. In this study, the Jakarta Composite Index (JCI) and the b (BUX) data were obtained from Investing and Bloomberg, covering two global events observed within the selected period from 27 September 2006 to 31 August 2021. The data is compared with the stock market volatility data from the global financial crisis in 2007/08. Findings reveal that the recent COVID-19 pandemic had negative stock market returns at a greater magnitude compared to the global financial crisis, in both the emerging and developed economy’s equity market. Stock markets in Indonesia and Hungary have experienced volatility during the crisis. While comparing the result between COVID-19 and the global financial crisis, we found that the volatility on the stock markets is higher in the COVID-19 pandemic than during the global financial crisis. The higher stock market negative returns and volatility during the COVID-19 pandemic triggered the lockdown and limited economic activities, which impacted supply and demand shock. The virus’s propagation and mutation are continually evolving, reminding us that the pandemic is far from over. Developed countries with larger fiscal space seem to find it easier to make responsive policies than countries with a tighter financial budget. Fiscal and monetary policies seem to be a quick solution to stabilize the economy and maintain investor confidence in the Indonesian and Hungarian capital markets. Furthermore, the extension of stock market volatility understanding ensures relevant information for investors, which benefits to mitigate the risk and build sustainable investments of the unprecedented events and enables the promotion of Sustainable Development Goal number 8 (SDG8) to communities, with access to financial products including the stock market, especially during economic and financial uncertainties. Full article
(This article belongs to the Special Issue Economic and Financial Implications of COVID-19)
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23 pages, 2202 KiB  
Article
Assess the Impact of the COVID-19 Pandemic and Propose Solutions for Sustainable Development for Textile Enterprises: An Integrated Data Envelopment Analysis-Binary Logistic Model Approach
by Han-Khanh Nguyen and Mai-Nam Vu
J. Risk Financial Manag. 2021, 14(10), 465; https://doi.org/10.3390/jrfm14100465 - 2 Oct 2021
Cited by 13 | Viewed by 5605
Abstract
The COVID-19 pandemic impacted many socio-economic areas of countries around the world. It has made the production and business situations of enterprises face substantial difficulties. In this study, the authors used data envelopment analysis (DEA) models to assess the impact of the COVID-19 [...] Read more.
The COVID-19 pandemic impacted many socio-economic areas of countries around the world. It has made the production and business situations of enterprises face substantial difficulties. In this study, the authors used data envelopment analysis (DEA) models to assess the impact of the COVID-19 pandemic on Vietnam’s textile and garment enterprises. The authors have used the binary logistic model to determine the factors affecting employees’ decision to change jobs in the textile industry. The research results showed that the COVID-19 pandemic greatly affected the business performance of the textile and garment enterprises in Vietnam. Moreover, the results helped identify the factors affecting employee turnover and proposed solutions to help businesses stabilize their personnel situation and develop sustainable businesses in the post-COVID-19 era. Full article
(This article belongs to the Special Issue Economic and Financial Implications of COVID-19)
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38 pages, 979 KiB  
Article
Impact of Elimination of Dividend Distribution Tax on Indian Corporate Firms Amid COVID Disruptions
by Anshu Agrawal
J. Risk Financial Manag. 2021, 14(9), 413; https://doi.org/10.3390/jrfm14090413 - 1 Sep 2021
Cited by 2 | Viewed by 8260
Abstract
Economic fallouts from COVID-19 have been unprecedented across all industries, with a handful of exceptions. The present study attempts to capture the impact of dividend distribution tax elimination, introduced through the Indian Finance Act 2020, on corporate dividend behavior in India. It explores [...] Read more.
Economic fallouts from COVID-19 have been unprecedented across all industries, with a handful of exceptions. The present study attempts to capture the impact of dividend distribution tax elimination, introduced through the Indian Finance Act 2020, on corporate dividend behavior in India. It explores the determinants of dividend payouts, changing payout decisions, dividend behavior of regular payers, and the prevalence of factors associated with changing payouts. Out of the top 1000 firms, based on their market capitalization at the Bombay Stock Exchange, 509 non-financial firms pursuing consistent dividend payments from 2015 to 2019 are analyzed. The study also examines the dividend behavior of regular payers exhibiting a stable or step-up payout from 2015 to 2019. COVID’s impact on the firm’s financial performance and sentiments seems to dominate, suppressing investors’ expectations of enhanced payouts associated with dividend distribution tax advantages, with considerable reductions in payouts and omissions shown by regular and irregular payers in 2020 and 2021 vis-à-vis the preceding years. The findings signify that the dividend payouts of sample firms are positively associated with the firms’ size, MBV ratio, and past dividends, and negatively allied with free cash flows and the EBITDA margin. Regular payers are observed to be more sensitive to past dividends. The study lends credence to the conservatism and prevalence of signaling and catering theories in the dividend behavior of Indian corporate firms. Full article
(This article belongs to the Special Issue Economic and Financial Implications of COVID-19)
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19 pages, 388 KiB  
Article
CSR Unconscious Consumption by Generation Z in the COVID-19 Era—Responsible Heretics Not Paying CSR Bonus?
by Radka MacGregor Pelikánová and Martin Hála
J. Risk Financial Manag. 2021, 14(8), 390; https://doi.org/10.3390/jrfm14080390 - 20 Aug 2021
Cited by 14 | Viewed by 4303
Abstract
The COVID-19 pandemic brought a myriad of challenges and opportunities and has influenced the modern concept of sustainability as projected into the Corporate Social Responsibility (CSR) and the underlying multi-stakeholder model. The new generation of consumers, Generation Z, has progressively increased its participation [...] Read more.
The COVID-19 pandemic brought a myriad of challenges and opportunities and has influenced the modern concept of sustainability as projected into the Corporate Social Responsibility (CSR) and the underlying multi-stakeholder model. The new generation of consumers, Generation Z, has progressively increased its participation in the market and its shopping trends have been impacting the entire CSR scenery. However, little is known about their attitudes, consumption preferences and expectations. In Spring 2021, this induced a pioneering case study survey involving members of Generation Z, students from a private university in Prague, focusing on their (lack of) readiness to pay any “CSR bonus”. The principal research aim was to study and understand the rather surprising unwillingness of a solvent part of the new generation of consumers to support CSR during the COVID-19 era by paying at least a symbolic CSR bonus. A formal survey involving a questionnaire, replied to by 228 students, out of which 18 totally rejected the CSR bonus, was assessed via contingency tables. It was accompanied by a complementary questioning via an informal interview and glossing. This plethora of data was processed by meta-analysis and lead to an unexpected proposition: prima facie sustainability heretics denying to pay any CSR bonus can be conscious consumers and responsible and progressive supporters of the sustainability and CSR. Their rejection is a deontological cry in a desert for more transparency, trust and the rule of law. Full article
(This article belongs to the Special Issue Economic and Financial Implications of COVID-19)
8 pages, 1270 KiB  
Communication
Modelling the Impact of Different COVID-19 Pandemic Waves on Real Estate Stock Returns and Their Volatility Using a GJR-GARCHX Approach: An International Perspective
by Mateusz Tomal
J. Risk Financial Manag. 2021, 14(8), 374; https://doi.org/10.3390/jrfm14080374 - 14 Aug 2021
Cited by 10 | Viewed by 3913
Abstract
This paper aims to investigate the impact of various COVID-19 pandemic waves on real estate stock returns and their volatility in developed (US, Australia), emerging (Turkey, Poland), and frontier (Morocco, Jordan) markets. A study using a GJR-GARCHX model revealed that the pandemic outbreak [...] Read more.
This paper aims to investigate the impact of various COVID-19 pandemic waves on real estate stock returns and their volatility in developed (US, Australia), emerging (Turkey, Poland), and frontier (Morocco, Jordan) markets. A study using a GJR-GARCHX model revealed that the pandemic outbreak had a limited impact on real estate company stocks. The first pandemic wave only in the US caused a decline in stock returns. In turn, this was the case in Poland and Jordan during the second and third waves. Furthermore, in the aftermath of the pandemic development, an increase in the volatility of stock returns can be observed in the Polish financial market. However, this effect mainly applies to the period of the first disease wave. Full article
(This article belongs to the Special Issue Economic and Financial Implications of COVID-19)
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16 pages, 2100 KiB  
Article
Empirical Evidence Regarding the Impact of Economic Growth and Inflation on Economic Sentiment and Household Consumption
by Larissa Batrancea
J. Risk Financial Manag. 2021, 14(7), 336; https://doi.org/10.3390/jrfm14070336 - 20 Jul 2021
Cited by 18 | Viewed by 7058
Abstract
The dynamics of the interconnected global market and consumption behavior has recently changed considerably. Using a sample of 28 nations within the European Union, the study examined the degree to which economic growth and inflation impacted economic sentiment and household consumption during the [...] Read more.
The dynamics of the interconnected global market and consumption behavior has recently changed considerably. Using a sample of 28 nations within the European Union, the study examined the degree to which economic growth and inflation impacted economic sentiment and household consumption during the time frame of December 2019 up to October 2020. The results estimated via panel generalized method of moments and panel least squares (with cross-section weights, time fixed effects) showed that economic sentiment and household consumption were significantly shaped by the proxies of economic growth and inflation. Moreover, in the case of economic sentiment, the negative impact of inflation was much stronger than the positive impact of economic growth. The reverse applied in the case of household consumption. The study draws policy implications regarding the strategies that public authorities, companies, and individual consumers could apply for stimulating national economies amid challenging times. Full article
(This article belongs to the Special Issue Economic and Financial Implications of COVID-19)
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14 pages, 1171 KiB  
Article
The Causal Nexus of Consumer and Business Confidence Indexes in Early Pandemic Period: Evidence from OECD Countries
by Inna Bielova, Jaroslav Halík and Lyudmila Ryabushka
J. Risk Financial Manag. 2021, 14(7), 311; https://doi.org/10.3390/jrfm14070311 - 7 Jul 2021
Cited by 2 | Viewed by 2509
Abstract
The COVID-19 pandemic has been shown dire consequences for the global economy, not only in the past and present but also in the future. These consequences are not only humanitarian but also financial and economic. This article raises the question of whether the [...] Read more.
The COVID-19 pandemic has been shown dire consequences for the global economy, not only in the past and present but also in the future. These consequences are not only humanitarian but also financial and economic. This article raises the question of whether the state of the health system is a factor that determines the direction of changes in consumer and business sentiment during the COVID-19 or whether other factors are more significant. The goal is to find out whether there is real progress in the national health system of a particular country or a regression and on this base to answer the question: What is more important for the expectations of the population and industry during the spread of the pandemic; the dynamics of the development of the health system or other factors? To assess the dynamics of the development of the health care system in different countries, we used the annual data on individual health indicators of the OECD countries for 2006–2019. There were identified countries with dynamic development and a slowing/deteriorating health system. Based on Granger’s approach in EViews, we used the Augmented Dickey–Fuller test and admit that health care systems are not a determining factor in consumer and business sentiment during a pandemic, i.e., only economic factors. The research contributes to the developed COVID-19 research by examining the impact of the changes in the mutual influence of Confidence indexes and macro indicators during the pandemic. Full article
(This article belongs to the Special Issue Economic and Financial Implications of COVID-19)
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14 pages, 1261 KiB  
Article
Polish Culture in the Face of the COVID-19 Pandemic Crisis
by Angelika Kantor and Jakub Kubiczek
J. Risk Financial Manag. 2021, 14(4), 181; https://doi.org/10.3390/jrfm14040181 - 14 Apr 2021
Cited by 13 | Viewed by 4722
Abstract
Cancellation of the events offered by cultural institutions was caused by the restrictions introduced by the government and, at a critical moment, a national lockdown. The COVID-19 pandemic forced cultural institutions to adapt to the new reality. The aim of this article was [...] Read more.
Cancellation of the events offered by cultural institutions was caused by the restrictions introduced by the government and, at a critical moment, a national lockdown. The COVID-19 pandemic forced cultural institutions to adapt to the new reality. The aim of this article was to present the impact of the pandemic on the activities of cultural institutions, as well as to identify and systematize the activities of such institutions during the pandemic. The following classification, dividing the activities into three groups, has been proposed: virtualization of existing activities, expansion of activities with additional initiatives, and implementation of corporate social responsibility (CSR) initiatives. The greatest challenge was the virtualization of the existing activities and finding new customer markets. The pandemic has contributed to a significant deterioration in the financial situation of cultural institutions because of the reduced income. Long-term effects on cultural institutions may be difficult to predict and losses may be difficult to rebuild. Full article
(This article belongs to the Special Issue Economic and Financial Implications of COVID-19)
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19 pages, 2555 KiB  
Article
The Australian Stock Market’s Reaction to the First Wave of the COVID-19 Pandemic and Black Summer Bushfires: A Sectoral Analysis
by Samet Gunay, Walid Bakry and Somar Al-Mohamad
J. Risk Financial Manag. 2021, 14(4), 175; https://doi.org/10.3390/jrfm14040175 - 11 Apr 2021
Cited by 18 | Viewed by 6957
Abstract
In this study, we investigated the impact of the first wave of the COVID-19 pandemic on various sectors of the Australian stock market. Market capitalization and equally weighted indices were formed for eleven Australian sectors to examine the influence of the pandemic on [...] Read more.
In this study, we investigated the impact of the first wave of the COVID-19 pandemic on various sectors of the Australian stock market. Market capitalization and equally weighted indices were formed for eleven Australian sectors to examine the influence of the pandemic on them. First, we examined the financial contagion between the Chinese stock market and Australian sector indices through the dynamic conditional correlation fractionally integrated generalized autoregressive conditional heteroskedasticity (DCC-FIGARCH) model. We found high time-varying correlations between the Chinese stock market and most of the Australian sector indices, with the financial, health care, information technology, and utility sectors displaying a decrease in co-movements during the pandemic. The Modified Iterative Cumulative Sum of Squares (MICSS) analysis results indicated the presence of structural breaks in the volatilities of most of the sector indices around the end of February 2020, but consumer staples, industry, information technology and real estate indices did not display any break. Markov regime-switching regression analysis depicted that the pandemic has mainly affected three sectors: consumer staples, industry, and real estate. When we considered the firm size, we found that smaller companies in the energy sector exhibited gradual deterioration, whereas small firms in the consumer staples sector experienced the largest positive impact from the pandemic. Full article
(This article belongs to the Special Issue Economic and Financial Implications of COVID-19)
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17 pages, 336 KiB  
Article
Effects of the COVID-19 Global Crisis on the Working Capital Management Policy: Evidence from Poland
by Grzegorz Zimon and Hossein Tarighi
J. Risk Financial Manag. 2021, 14(4), 169; https://doi.org/10.3390/jrfm14040169 - 9 Apr 2021
Cited by 61 | Viewed by 14340
Abstract
The paper aims to investigate the effects of the COVID-19 pandemic on working capital management policies among Polish small and medium-sized enterprises operating in Group Purchasing Organizations (GPOs). The results show that the firms adopted a moderate–conservative strategy for their working capital management. [...] Read more.
The paper aims to investigate the effects of the COVID-19 pandemic on working capital management policies among Polish small and medium-sized enterprises operating in Group Purchasing Organizations (GPOs). The results show that the firms adopted a moderate–conservative strategy for their working capital management. Moreover, the evidence confirms that the COVID-19 pandemic crisis did not change Working Capital Management (WCM) strategies significantly. The companies that have high financial security as a result of the high ratio of Liquidity, Quick, and cash conversion cycle (CCC) have tried to attract more new customers in the market by increasing the due date of accounts receivable so they can improve their sales performance, and also reduce the liabilities turnover to be able to work with more suppliers in the market. Moreover, among the various WCM strategies, the companies with a higher CCC ratio, along with those whose bulk of current assets consisted of accounts receivable and short-term investments, managed to have higher sales returns. Finally, our outcomes indicate that the firms operating in large cities have lower sales returns, meaning even Polish small and medium-sized enterprises’ ability within GPOs with the aid of the central unit can also get high return on sales (ROS) results. Full article
(This article belongs to the Special Issue Economic and Financial Implications of COVID-19)
12 pages, 795 KiB  
Article
Determinants of Differentiation of Cost of Risk (CoR) among Polish Banks during COVID-19 Pandemic
by Zbigniew Korzeb and Paweł Niedziółka
J. Risk Financial Manag. 2021, 14(3), 110; https://doi.org/10.3390/jrfm14030110 - 8 Mar 2021
Cited by 10 | Viewed by 4200
Abstract
The aim of the paper is to assess the evolution of the cost of credit risk (CoR) of Polish banks as a result of the COVID-19 pandemic in the first three quarters of 2020 as well as its microeconomic determinants. We analysed the [...] Read more.
The aim of the paper is to assess the evolution of the cost of credit risk (CoR) of Polish banks as a result of the COVID-19 pandemic in the first three quarters of 2020 as well as its microeconomic determinants. We analysed the structural diversity of the sample of the 13 largest Polish commercial banks in terms of the evolution of their CoR. For this purpose, a diagraphic method of Jan Czekanowski was used. It allowed us to distinguish two groups of banks displaying features characteristic of multi-object structures and three groups consisting of individual banks characterized by atypical CoR developments, significantly different from the structures of objects classified to the first and second groups. In the second part of the research, in order to identify the determinants of the observed trends, a multiple regression model was used in which the explanatory variable was the dynamics of CoR in the first three quarters of 2020. The parameters of return on capital (ROE) at the end of 2019, Non-Performing Loans (NPLs) at the end of 2019 and the dynamics of write-offs in the period 2017–2019 proved to be important explanatory variables. Full article
(This article belongs to the Special Issue Economic and Financial Implications of COVID-19)
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17 pages, 6385 KiB  
Article
Natural Resources Volatility and Economic Growth: Evidence from the Resource-Rich Region
by Arshad Hayat and Muhammad Tahir
J. Risk Financial Manag. 2021, 14(2), 84; https://doi.org/10.3390/jrfm14020084 - 19 Feb 2021
Cited by 79 | Viewed by 4458
Abstract
This research paper investigates the impact of natural resources volatility on economic growth. The paper focused on three resource-rich economies, namely, UAE, Saudi Arabia, and Oman. Using data from 1970 to 2016 and employing the autoregressive distributed lag (ARDL) cointegration approach, we found [...] Read more.
This research paper investigates the impact of natural resources volatility on economic growth. The paper focused on three resource-rich economies, namely, UAE, Saudi Arabia, and Oman. Using data from 1970 to 2016 and employing the autoregressive distributed lag (ARDL) cointegration approach, we found that both natural resources and their volatility matter from the perspective of growth. The study found strong evidence in favor of a positive and statistically significant relationship between natural resources and economic growth for the economies of UAE and Saudi Arabia. Similarly, for the economy of Oman, a positive but insignificant relationship is observed between natural resources and economic growth. However, we found that the volatility of natural resources has a statistically significant negative impact on the economic growth of all three economies. This study contradicts the traditional concept of the resources curse and provides evidence of the resources curse in the form of a negative impact of volatility on economic growth. Full article
(This article belongs to the Special Issue Economic and Financial Implications of COVID-19)
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19 pages, 1851 KiB  
Communication
E.U. and China Trends in Trade in Challenging Times
by Irena Jindřichovská and Erginbay Uğurlu
J. Risk Financial Manag. 2021, 14(2), 71; https://doi.org/10.3390/jrfm14020071 - 7 Feb 2021
Cited by 12 | Viewed by 7033
Abstract
The sudden and abrupt rise of COVID-19 became a challenge for the world economy. In this paper, we investigate the changes in a trend of mutual trade between the EU-15 countries and China during the demanding times of the COVID-19 crisis. We use [...] Read more.
The sudden and abrupt rise of COVID-19 became a challenge for the world economy. In this paper, we investigate the changes in a trend of mutual trade between the EU-15 countries and China during the demanding times of the COVID-19 crisis. We use monthly data for Chinese exports to the E.U. (2018:01–2020:05) and imports from the E.U. (2018:01–2020:07) relying on the data from the open-source TradeMap developed by the International Trade Centre UNCTAD/WTO (ITC). Overall, there is an obvious decline of 13–32 percent in worldwide trade as predicted by the WTO. This affected China as the main trading partner of electronic devices and medical supplies. The trade between the E.U. and China has decreased, but the major change in demand brought an alteration in commodities structures and the reorientation of Chinese export production. In the first five months of 2020, we witnessed the strong engagement of the Chinese economy in the production of goods newly in high demand—mainly articles strongly related to healthcare and medical equipment. Thus, we have observed that the Chinese were very flexible in changing the structure of their exports triggered by the COVID-19 crisis. This flexibility is worth further exploration, especially because the COVID-19 crisis is still not over and new data and changing results can be expected. Full article
(This article belongs to the Special Issue Economic and Financial Implications of COVID-19)
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