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Int. J. Financial Stud., Volume 5, Issue 2 (June 2017) – 4 articles

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592 KiB  
Review
The European Insurance Industry: A PEST Analysis
by Charmaine Barbara, Dominic Cortis, Roberta Perotti, Claudia Sammut and Antoine Vella
Int. J. Financial Stud. 2017, 5(2), 14; https://doi.org/10.3390/ijfs5020014 - 31 May 2017
Cited by 13 | Viewed by 24487
Abstract
The insurance industry plays an important role for European economic stability and the threats and opportunities it faces should be carefully determined. In this paper we highlight the main challenges by using a Political, Economic, Social and Technological (PEST) analysis. This work applies [...] Read more.
The insurance industry plays an important role for European economic stability and the threats and opportunities it faces should be carefully determined. In this paper we highlight the main challenges by using a Political, Economic, Social and Technological (PEST) analysis. This work applies conventional actuarial thought on this area by focusing strictly on the European sector. Full article
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281 KiB  
Article
Impacts of Capital Structure on Performance of Banks in a Developing Economy: Evidence from Bangladesh
by Md. Nur Alam Siddik, Sajal Kabiraj and Shanmugan Joghee
Int. J. Financial Stud. 2017, 5(2), 13; https://doi.org/10.3390/ijfs5020013 - 03 May 2017
Cited by 34 | Viewed by 14032
Abstract
The capital structure decision plays an important role in the performance of a firm. Therefore, there have been many studies inspecting the rapport of capital structure with the performance of firms, although the findings of these studies are inconclusive. In addition, there is [...] Read more.
The capital structure decision plays an important role in the performance of a firm. Therefore, there have been many studies inspecting the rapport of capital structure with the performance of firms, although the findings of these studies are inconclusive. In addition, there is a relative deficiency of empirical studies examining the link between capital structure and the performance of banks in Bangladesh. This study attempts to fill this gap. Using the panel data of 22 banks for the period of 2005–2014, this study empirically examined the impacts of capital structure on the performance of Bangladeshi banks assessed by return on equity, return on assets and earnings per share. The results of the pooled ordinary least square analysis showed that capital structure inversely affects bank performance. The findings of this empirical study are of greater significance for the developing countries like Bangladesh because it calls for the concentration of the bank management and the policy makers to pursue the policies that reduce reliance on debt to achieve the optimal level of capital structure. The results of this study are also analysed in the light of earlier studies. Full article
3720 KiB  
Article
The ECB’s Fight against Low Inflation: On the Effects of Ultra-Low Interest Rates
by Ad Van Riet
Int. J. Financial Stud. 2017, 5(2), 12; https://doi.org/10.3390/ijfs5020012 - 07 Apr 2017
Cited by 12 | Viewed by 8773
Abstract
Starting in June 2014, the European Central Bank (ECB) stepped up its monetary accommodation in order to counter a too prolonged period of low inflation in the euro area. This article offers a narrative of the monetary policy measures taken up to December [...] Read more.
Starting in June 2014, the European Central Bank (ECB) stepped up its monetary accommodation in order to counter a too prolonged period of low inflation in the euro area. This article offers a narrative of the monetary policy measures taken up to December 2016 and a review of the effects of ultra-low interest rates. The exceptional monetary stimulus transmitted to the economy broadly as intended. Moreover, it enhanced the financial capacity of economic agents to bear risks. At the same time, the ECB and the European micro- and macro-prudential authorities remained watchful of the unintended side-effects of an extended period of very low or negative interest rates for financial intermediation, financial stability and market discipline and took preventive or corrective measures as appropriate. A joint plan of action carried out by the 19 member countries with the aim to speed up balance sheet repair, accelerate the economic recovery and achieve higher productivity growth could have contributed to a more effective euro area macroeconomic and financial policy mix. Full article
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1190 KiB  
Article
Analysis of the Relationship between Ethanol Spot and Futures Prices in Brazil
by Derick D. Quintino, Sergio A. David and Carlos E. de F. Vian
Int. J. Financial Stud. 2017, 5(2), 11; https://doi.org/10.3390/ijfs5020011 - 01 Apr 2017
Cited by 9 | Viewed by 4688
Abstract
In this work, an investigation and analysis are carried out in order to observe the relationship between ethanol spot and futures prices in Brazil. We adopted the Engle and Granger co-integration approach. Also, we consider the information share method proposed by Hasbrouck in [...] Read more.
In this work, an investigation and analysis are carried out in order to observe the relationship between ethanol spot and futures prices in Brazil. We adopted the Engle and Granger co-integration approach. Also, we consider the information share method proposed by Hasbrouck in order to examine the market efficiency in price discovery and information transmission. Results show that although the futures market is efficient in price discovery and information transmission, the cash market leads the long-run price discovery process. This suggests that the underlying cause of the dominance of the available market over the futures market can be attributed to the market’s relative concentration in wholesale ethanol distribution due to the formation of marketing pools by the ethanol mills, as well as the small number of distributors that control a significant portion of the market share. Full article
(This article belongs to the Special Issue Energy Finance)
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