Naoyuki Yoshino, Farhad Taghizadeh-Hesary and Farhad Nili
Deposit insurance is a key element in modern banking, as it guarantees the financial safety of deposits at depository financial institutions. It is necessary to have at least a…
Abstract
Purpose
Deposit insurance is a key element in modern banking, as it guarantees the financial safety of deposits at depository financial institutions. It is necessary to have at least a dual fair premium rate system based on creditworthiness of financial institutions, as considering singular premium system for all banks will have moral hazard. This paper aims to develop theoretical and empirical model for calculating dual fair premium rates.
Design/methodology/approach
The definition of a fair premium rate in this paper is a rate that covers the operational expenditures of the deposit insuring organization, provides it with sufficient funds to enable it to pay a certain percentage share of deposit amounts to depositors in case of bank default and provides it with sufficient funds as precautionary reserves. To identify and classify healthier and more stable banks, the authors use credit rating methods that use two major dimensional reduction techniques. For forecasting nonperforming loans (NPLs), the authors develop a model that can capture both macro shocks and idiosyncratic shocks to financial institutions in a vector error correction model.
Findings
The response of NPLs/loans to macro shocks and idiosyncratic innovations shows that using a model with macro variables only is insufficient, as it is possible that under favorable economic conditions, some banks show negative performance due to bank level reasons such as mismanagement or vice versa. The final results show that deposit insurance premium rate needs to be vary based on banks’ creditworthiness.
Originality/value
The results provide interesting insight for financial authorities to set fair deposit insurance premium rate. A high premium rate reduces the capital adequacy of individual financial institutions, which endangers the stability of the financial system; a low premium rate will reduce the security of the financial system.
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Keywords
Farhad Taghizadeh-Hesary, Naoyuki Yoshino and Yugo Inagaki
One of the key drivers behind the recent growth in the global solar energy market is the decline in solar module prices. Many empirical analyses have been carried out to identify…
Abstract
Purpose
One of the key drivers behind the recent growth in the global solar energy market is the decline in solar module prices. Many empirical analyses have been carried out to identify the mechanism behind this price reduction. However, studies on the price reduction mechanism of solar modules over the years have focused purely on the technological aspect of manufacturing. The purpose of this study is to consider the influence of economic and monetary factors such as the interest rate and exchange rate on solar module pricing in addition to other factors that considered in earlier studies including technology, wage rate and other energy prices.
Design/methodology/approach
In this paper, an oligopolistic model and econometric method are used to determine the economic factors that have an influence on solar module prices. The paper constructs a solar module pricing model and conducts a fully modified ordinary least squares analysis to estimate the influence of each factor. Analysis is conducted for the top five solar module producing countries in the world from 1997 to 2015. The five countries are the People’s Republic of China, Germany, Japan, the Republic of Korea and the USA.
Findings
Empirical analysis provides several findings concerning the solar module pricing mechanism. These vary for each country. However, generally the interest rate has a positive correlation with solar module prices, while the exchange rate, knowledge stock and oil price have a negative correlation with solar module prices.
Practical implications
First, the government must expand channels for renewable energy funding. As renewable industries are high-tech, the influence that capital cost has on technology price is significant. Government efforts to provide industries with low-interest finance will accelerate renewable business. There have been many attempts to lower interest rates for renewable energy technology to accelerate growth in the green technology market. Second, the government must expand research and development (R&D) expenditures focused on renewable energy technology. The technological advancements acquired through R&D enhance module performance efficiency, thereby reducing costs. Therefore, government policies aimed at increasing targeted R&D expenditure will be an effective means of expanding the installation of renewable energies.
Originality/value
Studies on the price reduction mechanism of solar modules over the years have focused purely on the technological aspect of the manufacturing. This is the first research to bring economic, monetary and technological factors of solar module pricing together.
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Naoyuki Yoshino and Muhammad Zubair Mumtaz
This study proposes a theoretical model for measuring the greenness factors of a firm. We develop the multifactor utility function and find that the proportion of investment in…
Abstract
This study proposes a theoretical model for measuring the greenness factors of a firm. We develop the multifactor utility function and find that the proportion of investment in green bonds is higher if greenness factors account for by a firm and vice versa. Moreover, we further develop the global aspects of greenness measures which identify how much level of greenness is maintained by a firm to make the environment green. In terms of reduction in emissions based on global measures, we report that the proportion of investment in green bonds is higher. This study argues that the difference between firm-related and global measures of greenness refers to distortion in portfolio allocation. Lastly, we compare the results of five Asian countries and report that Japanese firms are appropriately following the greenness measures while the firms operating in developing countries including Indonesia, Malaysia, Pakistan, and Thailand are far behind in implementing the greenness measures.
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Stephanos Papadamou, Costas Siriopoulos and Nikolaos A. Kyriazis
This paper presents an integrated overview of the empirical literature on the impact of all forms of unconventional monetary policy on macroeconomic variables and on markets.
Abstract
Purpose
This paper presents an integrated overview of the empirical literature on the impact of all forms of unconventional monetary policy on macroeconomic variables and on markets.
Design/methodology/approach
This survey covers the findings concerning portfolio rebalancing, signaling, liquidity, bank lending and confidence channels.
Findings
The positive effect of QE announcements on stock and bond prices seems to be unified across studies. A contagion effect from US QE to other emerging markets is identified, while currency devaluation is present in most cases for the country that its central bank adopted such policies. Moreover, impacts of non-conventional practices on GDP, inflation and unemployment are examined. The studies presenting weak instead of strong positive effects on inflation are more, and these studies, also, present weak positive effects on GDP growth.
Originality/value
Based on the large body of research on non-conventional action taking, this is the first survey including effects of each country that adopted quantitative easing (QE) measures and that provides results from every methodology employed in order to estimate unconventional practices' impacts.
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This study aims to highlight the key aspects of sustainable finance using bibliometric analysis of the relevant literature extracted from two separate databases, Scopus and…
Abstract
Purpose
This study aims to highlight the key aspects of sustainable finance using bibliometric analysis of the relevant literature extracted from two separate databases, Scopus and Dimensions.ai. The present study contributes towards the achievement of sustainable development by providing directions to align financial decision-making with different sustainability aspects.
Design/methodology/approach
The author conducted bibliometric analysis for 1,220 articles from Scopus and 1,437 publications from Dimensions.ai. The most frequently occurring terms in sustainable finance research are explored and visualised using the VOSviewer.
Findings
Bibliometric findings revealed a dynamic evolution of research focus over time. The social component dominated from 2012 to 2016, however a shift to environmental and climate change considerations is noticed from 2016 to 2020. Recent studies (2020–2022) exhibited heightened attention to green finance and renewable energy. Overlay visualisations highlighted similar trends in both databases, indicating a contemporary emphasis on green finance.
Research limitations/implications
This study enriches theoretical discourse by mapping the trajectory of sustainable finance research, contributing to a deeper understanding of its evolution.
Practical implications
Insights from this study guide researchers and practitioners in identifying trends, that can help the integration of green finance principles into corporate strategies.
Social implications
Findings also raise awareness among stakeholders, and help facilitate socially responsible corporate cultures and informed policymaking.
Originality/value
The originality of this study lies in its comprehensive bibliometric analysis of sustainable finance research in management studies, drawing data from two major databases and spanning over three decades.