scholarly journals The Interdependence of Debt and Innovation Sustainability: Evidence from the Onset of Credit Default Swaps

2019 ◽  
Vol 11 (10) ◽  
pp. 2946
Author(s):  
Yixin Chen ◽  
Junrui Zhang

Innovation sustainability requires sustainable financing. Extensive research suggests that debt is a disfavored source of innovation financing. In this study, we show that a recent financial development, credit default swaps (CDSs), may change the institutional logics of debt, making debt useful to the financing innovation. To be specific, we find that with CDS protection, creditors become less concerned with a borrowing firm’s credit risk and risk taking, making debt tolerant of early failures and reducing the negative impact of debt on the process of Innovation. In addition, we find that the availability of CDSs is more likely to change the nature of long-term debt than that of short-term debt, making long-term debt a useful instrument for the financing of innovation. Finally, the mitigation effect of CDS on the relation between debt and innovation is more pronounced for CDS firms with higher pay sensitivity to stock price volatility (Vega) and less financial constraints, revealing that a CEO’s incentive, rather than the relaxed financing constraints, is the underlying channel for the reduced negative impact of debt on innovation after CDS trading.

2020 ◽  
Vol 3 (3) ◽  
pp. 51-64
Author(s):  
Ramzan Ali ◽  
Usman Ullah Butt ◽  
Muhammad Musa Khan ◽  
Muhammad Shaheer ◽  
Farhan Abbas Zaidi

Purpose- The prime objective of this study was to find the co-movement between the Canadian credit default swaps market, the Stock market and volatility index (TSX 60 Index) Design/ Methodology- To achieve this purpose, daily data containing 2870 observations starting from the 1st of January 2009 to the 30th of December 2019 were analyzed. This study employed the wavelet approach to present results in short-term, medium-term, long-term, and very long time. Findings- The findings of this study showed a negative correlation between the CDS market, stock market, and the TSX 60 index in the short-term as well as in the long-term term, while in medium-term and very long-term period correlation is strongly positive. The wavelet co-movement results in the short-term and long-term were negative, while this relationship in the medium-term and very long-term period was strongly positive. Practical Implications- This research provides simultaneous valuable information for investment decisions in the short, medium, and long term time horizons, as well as for the policymakers in the Canadian credit default swaps market, stock market, and the volatility index (TSX 60 Index).


2021 ◽  
Vol 21 (1) ◽  
Author(s):  
Laura Altweck ◽  
Stefanie Hahm ◽  
Holger Muehlan ◽  
Tobias Gfesser ◽  
Christine Ulke ◽  
...  

Abstract Background While a strong negative impact of unemployment on health has been established, the present research examined the lesser studied interplay of gender, social context and job loss on health trajectories. Methods Data from the German Socio-Economic Panel was used, which provided a representative sample of 6838 participants. Using latent growth modelling the effects of gender, social context (East vs. West Germans), unemployment (none, short-term or long-term), and their interactions were examined on health (single item measures of self-rated health and life satisfaction respectively). Results Social context in general significantly predicted the trajectories of self-rated health and life satisfaction. Most notably, data analysis revealed that West German women reported significantly lower baseline values of self-rated health following unemployment and did not recover to the levels of their East German counterparts. Only long-term, not short-term unemployment was related to lower baseline values of self-rated health, whereas, in relation to baseline values of life satisfaction, both types of unemployment had a similar negative effect. Conclusions In an economic crisis, individuals who already carry a higher burden, and not only those most directly affected economically, may show the greatest health effects.


2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Wenmin Wu ◽  
Chien-Chiang Lee ◽  
Wenwu Xing ◽  
Shan-Ju Ho

AbstractThis research explored the effects of the coronavirus disease (COVID-19) outbreak on stock price movements of China’s tourism industry by using an event study method. The results showed that the crisis negatively impacted tourism sector stocks. Further quantile regression analyses supported the non-linear relationship between the government’s responses and stock returns. The results present that the resurgence of the virus in Beijing did bring about a short-term negative impact on the tourism industry. The empirical results can be used for future researchers to conduct a comparative study of cultural differences concerning government responses to the COVID-19.


Author(s):  
سعدالله ألنعيمي

The study aims to analyzing the reciprocal relationship between the nominal exchange rate of the Turkish lira versus the U.S. dollar and the stock prices of the companies listed on the Istanbul Stock Exchange (ISE) expressed in the general market index for the period from 2005 to 2020 with 192 monthly observations, based on the traditional theory and the theory of portfolio balance model in theoretical interpretation for that relationship, aiming to identify the effect of the exchange rate on stock prices, as well as to analyze the causal relationship between those variables and to identify which of them is the cause or which is the result, using the Autoregressive Distributed Lag (ARDL) model. The research found that the exchange rate has a positive effect on stock prices in the long term, despite the emergence of the negative impact in the short term, but the long-term relationship has corrected the course of the short-term relationship with a time period not exceeding one month, in addition to proving that this relationship takes one direction. From the exchange rate towards stock prices, that is, the exchange rate is the reason and stock prices are the result, therefore the results of this research helps investors to predict future trends of stock prices depending on the exchange rate changes, and it also enables the companies, especially those with foreign transactions, to manage price risks the exchange rate in order to avoid its negative impact on its share price, as it represents an obstacle to achieving its main goal of maximizing the share price


2020 ◽  
Vol 3 (1) ◽  
Author(s):  
Grace Amin

Bullying is deliberate aggressive action, using an imbalance of strength physically or mentally by hurting physical, verbal, or emotional / psychological forms repeatedly. In the last decade, cases of bullying in Indonesia continue to increase and if not handled properly will increasingly have a negative impact on the development of the children of the nation's next generation. Bullying does not only affect children who are bullied but can also affect children who bully, children who witness bullying. Some of the effects of bullying include anxiety, depression, and low self-esteem. The purpose of community engagement is to socialize the impact of bullying and how to increase self-esteem to adolescents. Through psychoeducation programs in adolescents such as schools and teenagers religious communities in the Cikarang - Bekasi region, young people gain an in-depth understanding of bullying, its effects and how to increase their confidence. Through this psychoeducation, teenagers understand the understanding, types and effects of bullying both short term and long term so they promise to resist bullying starting from themselves. Teenagers learn that humans are social beings who need each other. They learn about the meaning of diversity and bhineka tunggal ika and try to implement it in their next lives by respecting the differences in their environment. These teenagers learn to respect themselves more, see the positive things that God has given them. They try to always believe in themselves that they are perfect and valuable beings in God's eyes so that even though the environment around them may not appreciate, they can still see positive things in themselvesABSTRAK:Bullying adalah tindakan agresif yang disengaja, menggunakan ketidakseimbangan kekuatan secara fisik atau mental dengan cara menyakiti bentuk fisik, verbal, atau emosional/ psikologis secara berulang – ulang. Dalam satu decade terakhir, kasus bullying di Indonesia terus meningkat dan bila tidak ditangani dengan baik akan semakin berdampak negative bagi perkembangan anak – anak generasi penerus bangsa. Tindakan bullying tidak hanya berdampak pada anak yang di-bully tetapi juga dapat berdampak pada anak yang mem-bully, anak yang menyaksikan bullying. Beberapa dampak bullying diantaranya kecemasan, depresi, serta rendahnya harga diri (self-esteem). Tujuan dari pengabdian kepada masyarakat ini adalah untuk mensosialisasikan dampak bullying serta cara meningkatkan self-esteem kepada para remaja. Melalui program psikoedukasi di lingkungan remaja seperti sekolah maupun komunitas keagamaan remaja wilayah Cikarang – Bekasi, para remaja mendapatkan pemahaman mendalam mengenai bullying, dampaknya serta bagaimana cara meningkatkan kepercayaan diri mereka. Melalui psikoedukasi ini, para remaja memahami pengertian, jenis serta dampak bullying baik jangka pendek maupun jangka panjang sehingga mereka berjanji untuk bersikap menolak bullying mulai dari diri mereka sendiri. Para remaja belajar bahwa manusia adalah mahluk social yang saling membutuhkan. Mereka belajar tentang makna keberagaman dan Bhineka Tunggal Ika serta berusaha mengimplementasikannya dalam kehidupan mereka selanjutnya dengan cara menghargai perbedaan yang ada di lingkungannya. Remaja ini belajar untuk lebih menghargai diri mereka, melihat hal positif yang telah diberikan Tuhan kepada mereka. Mereka mencoba untuk selalu menanamkan dalam diri bahwa mereka adalah mahluk yang sempurna dan berharga di mata Tuhan sehingga walaupun lingkungan di sekitar mereka mungkin tidak menghargai, mereka tetap dapat melihat hal positif dalam diri mereka.


2020 ◽  
Author(s):  
Christian Rück ◽  
David Mataix-Cols ◽  
Kinda Malki ◽  
Mats Adler ◽  
Oskar Flygare ◽  
...  

ABSTRACTBackgroundVarious surveys have documented a negative impact of the COVID-19 pandemic on the population’s mental health. There is widespread concern about a surge of suicides, but evidence supporting a link between global pandemics and suicide is very limited. Using historical data from the three major influenza pandemics of the 20th century, and recently released data from the first half of 2020, we aimed to investigate whether an association exists between influenza deaths and suicide deaths.MethodsAnnual data on influenza death rates and suicide rates were extracted from the Statistical Yearbook of Sweden from 1910-1978, covering the three 20th century pandemics, and from Statistics Sweden for the period from January to June of each year during 2000-2020. COVID-19 death data were available for the first half of 2020. We implemented non-linear autoregressive distributed lag (NARDL) models to explore if there is a short-term and/or long-term effect of increases and decreases in influenza death rates on suicide rates during 1910-1978. Analyses were done separately for men and women. Descriptive analyses were used for the available 2020 data.FindingsBetween 1910-1978, there was no evidence of either short-term or long-term significant associations between influenza death rates and changes in suicides. The same pattern emerged in separate analyses for men and women. Suicide rates in January-June 2020 revealed a slight decrease compared to the corresponding rates in January-June 2019 (relative decrease by −1.2% among men and −12.8% among women).InterpretationWe found no evidence of short or long-term association between influenza death rates and suicide death rates across three 20th century pandemics or during the first six months of 2020 (when the first wave of COVID-19 occurred). Concerns about a substantial increase of suicides may be exaggerated. The media should be cautious when reporting news about suicides during the current pandemic.


2021 ◽  
Vol 9 (4) ◽  
pp. 399-420
Author(s):  
Weiguo Chen ◽  
Shufen Zhou ◽  
Yin Zhang ◽  
Yi Sun

Abstract According to behavioral finance theory, investor sentiment generally exists in investors’ trading activities and influences financial market. In order to investigate the interaction between investor sentiment and stock market as well as financial industry, this study decomposed investor sentiment, stock price index and SWS index of financial industry into IMF components at different scales by using BEMD algorithm. Moreover, the fluctuation characteristics of time series at different time scales were extracted, and the IMF components were reconstructed into short-term high-frequency components, medium-term important event low-frequency components and long-term trend components. The short-term interaction between investor sentiment and Shanghai Composite Index, Shenzhen Component Index and financial industries represented by SWS index was investigated based on the spillover index. The time difference correlation coefficient was employed to determine the medium-term and long-term correlation among variables. Results demonstrate that investor sentiment has a strong correlation with Shanghai Composite Index, Shenzhen Component Index and different financial industries represented by SWS index at the original scale, and the change of investor sentiment is mainly influenced by external market information. The interaction between most markets at the short-term scale is weaker than that at the original scale. Investor sentiment is more significantly correlated with SWS Bond, SWS Diversified Finance and Shanghai Composite Index at the long-term scale than that at the medium-term scale.


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