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Owusu Junior P, Tetteh JE, Nkrumah-Boadu B, Adjei AN. Comovement of african stock markets: Any influence from the COVID-19 pandemic? Heliyon 2024; 10:e29409. [PMID: 38707459 PMCID: PMC11066148 DOI: 10.1016/j.heliyon.2024.e29409] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Download PDF] [Figures] [Journal Information] [Subscribe] [Scholar Register] [Received: 11/13/2023] [Revised: 03/28/2024] [Accepted: 04/08/2024] [Indexed: 05/07/2024] Open
Abstract
Utilising daily data from twelve Sub-Saharan stock markets we investigate the co-movements and information transmission among African stock markets as a result of the impact of COVID while employing multiple wavelet techniques and applying the Complete Ensemble Empirical Mode Decomposition with Adaptive Noise (CEEMDAN) to Renyi's and Shannon's effective transfer entropy analysis. The results infer that some number of co-movements exist among stock markets in Africa and that during periods of uncertainties, diversification through the creation of portfolios in African markets is not conducive since they tend to comove strongly during such periods. The study discovered that, a few of the markets responded to the pandemic in leads lags in the pre-, during and post-COVID era, as well as reacted to information transmission. Our findings generally show that information transmission/spillovers are more predominant in the short term than in the medium- and long-term horizons. The Renyi's effective transfer entropy recorded more negative information flows between African stock market than positive information flows, both during the COVID period and after. On the other hand, Shannon's entropy showed non-negative information flow across various time horizons. We conclude that even though most African stock markets were not prone to the contagion effect of the pandemic, it is of vital importance to re-evaluate the notion that African stock markets are immune to contagion of stock market co-movements, especially in times of global uncertainties.
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Affiliation(s)
| | | | | | - Abigail N.K. Adjei
- School of Business Administration, Data Link Institute of Business and Technology, Tema, Ghana
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Karim S, Naeem MA, Tiwari AK, Ashraf S. Examining the avenues of sustainability in resources and digital blockchains backed currencies: evidence from energy metals and cryptocurrencies. ANNALS OF OPERATIONS RESEARCH 2023:1-18. [PMID: 37361090 PMCID: PMC10155668 DOI: 10.1007/s10479-023-05365-8] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Figures] [Subscribe] [Scholar Register] [Accepted: 04/17/2023] [Indexed: 06/28/2023]
Abstract
The sustainability issues have been surmounted in the last decades. The digital disruption caused by blockchains and other digitally backed currencies has raised several serious concerns for policymakers, governmental agencies, environmentalists, and supply chain managers. Alternatively, sustainable resources are environmentally sustainable and naturally available resources which are employable by several regulation authorities to reduce the carbon footprint and attain energy transition mechanisms to support sustainable supply chains in the ecosystem. Using the asymmetric time-varying parameters vector auto-regressions approach, the current study examines the asymmetric spillovers between blockchain-backed currencies and environmentally supported resources. We find clusters between blockchain-based currencies and resource-efficient metals, highlighting similar-class dominance of spillovers. We portrayed several implications of our study for policymakers, supply chain managers, the blockchain industry, sustainable resources mechanisms, and regulatory bodies to emphasize that natural resources play a significant role in attaining sustainable supply chains servicing the benefits to society at large and to other stakeholders.
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Affiliation(s)
- Sitara Karim
- Department of Economics and Finance, Sunway Business School, Sunway University, Subang Jaya, Malaysia
| | - Muhammad Abubakr Naeem
- Accounting and Finance Department, United Arab Emirates University, P.O. Box 15551, Al-Ain, United Arab Emirates
| | | | - Sania Ashraf
- Dubai Business School, University of Dubai, Dubai, United Arab Emirates
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Naeem MA, Karim S, Yarovaya L, Lucey BM. Systemic risk contagion of green and Islamic markets with conventional markets. ANNALS OF OPERATIONS RESEARCH 2023:1-23. [PMID: 37361088 PMCID: PMC10112322 DOI: 10.1007/s10479-023-05330-5] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Figures] [Subscribe] [Scholar Register] [Accepted: 03/30/2023] [Indexed: 06/28/2023]
Abstract
Financial markets are exposed to extreme uncertain circumstances escalating their tail risk. Sustainable, religious, and conventional markets represent three different markets with various characteristics. Motivated with this, the current study measures the tail connectedness between sustainable, religious, and conventional investments by employing a neural network quantile regression approach from December 1, 2008 to May 10, 2021. The neural network recognized religious and conventional investments with maximum exposure to tail risk following the crisis periods reflecting strong diversification benefits of sustainable assets. The Systematic Network Risk Index spots Global Financial Crisis, European Debt Crisis, and COVID-19 pandemic as intensive events yielding high tail risk. The Systematic Fragility Index ranks the stock market in the pre-COVID period and Islamic stocks during the COVID sample as the most susceptible markets. Conversely, the Systematic Hazard Index nominates Islamic stocks as the chief risk contributor in the system. Given these, we portray various implications for policymakers, regulatory bodies, investors, financial market participants, and portfolio managers to diversify their risk using sustainable/green investments.
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Affiliation(s)
- Muhammad Abubakr Naeem
- Accounting and Finance Department, United Arab Emirates University, P.O. Box 15551, Al-Ain, United Arab Emirates
| | - Sitara Karim
- Department of Economics and Finance, Sunway Business School, Sunway University, Subang Jaya, 47500 Malaysia
| | - Larisa Yarovaya
- The Centre for Digital Finance, Southampton Business School, Southampton, UK
| | - Brian M. Lucey
- Trinity Business School, Trinity College Dublin, Dublin, Ireland
- University of Economics Ho Chi Minh City, Ho Chi Minh City, Vietnam
- Jiangxi University of Finance and Economics, Nanchang, China
- Abu Dhabi University, Abu Dhabi, United Arab Emirates
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Rehman MU, Naeem MA, Ahmad N, Vo XV. Global energy markets connectedness: evidence from time-frequency domain. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH INTERNATIONAL 2023; 30:34319-34337. [PMID: 36512274 PMCID: PMC9745292 DOI: 10.1007/s11356-022-24612-2] [Citation(s) in RCA: 2] [Impact Index Per Article: 2.0] [Reference Citation Analysis] [Abstract] [Key Words] [MESH Headings] [Track Full Text] [Figures] [Subscribe] [Scholar Register] [Received: 07/23/2022] [Accepted: 12/01/2022] [Indexed: 06/17/2023]
Abstract
We examine the presence of dependence across 51 energy markets classified into different regions from Jan 2007 to June 2021. In order to examine the presence of dependence across different energy markets, we apply standard and threshold dependence measures proposed by Diebold and Yilmaz, Int J Forecast 28:57-66, (2012) and Baruník and Křehlík, J Financ Econ 16(2):271-296, (2018). We highlight the presence of strong dependence between the energy markets at both regional level and across other regions. European and American energy markets are highly connected within the region over the long-run whereas Asia-Pacific and the African energy markets offer optimal diversification opportunities. Both short- and long-run dependence exists between Chinese and the Hong Kong energy markets and between the US and Canadian energy markets. We also witness substantial increase dependence across all the energy markets during different crisis periods.
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Affiliation(s)
- Mobeen Ur Rehman
- Institute of Business Research, University of Economics Ho Chi Minh City, Ho Chi Minh City, Vietnam
- South Ural State University, 76, Lenin Prospekt, Chelyabinsk, Russian Federation
| | - Muhammad Abubakr Naeem
- South Ural State University, 76, Lenin Prospekt, Chelyabinsk, Russian Federation
- Accounting and Finance Department, United Arab Emirates University, P.O. Box 15551, Al-Ain, United Arab Emirates
| | - Nasir Ahmad
- Standard and Poor Global, Islamabad, Pakistan
| | - Xuan Vinh Vo
- Institute of Business Research and CFVG, University of Economics Ho Chi Minh City, Ho Chi Minh City, Vietnam
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Naeem MA, Karim S, Farid S, Tiwari AK. Comparing the asymmetric efficiency of dirty and clean energy markets pre and during COVID-19. ECONOMIC ANALYSIS AND POLICY 2022; 75:548-562. [PMID: 35789957 PMCID: PMC9243432 DOI: 10.1016/j.eap.2022.06.015] [Citation(s) in RCA: 2] [Impact Index Per Article: 1.0] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Figures] [Subscribe] [Scholar Register] [Received: 02/06/2022] [Revised: 06/16/2022] [Accepted: 06/16/2022] [Indexed: 06/15/2023]
Abstract
In the backdrop of the recent COVID-19 pandemic, the study examines the comparative asymmetric efficiency of dirty and clean energy markets pre and during the COVID-19 pandemic. For this purpose, we utilize an asymmetric multifractality detrended fluctuation analysis (A-MF-DFA). The study's findings uncover the presence of asymmetric multifractality in clean and dirty energy markets. In addition, multifractality in the energy markets is sensitive to trends, time horizon and major events. More importantly, the results suggest superior efficiency of clean-energy markets compared to conventional energies. We confirm the time-varying nature of market efficiency in the energy markets, and during the recent COVID-19 outbreak, market inefficiencies in the clean and dirty energy markets soared. In this way, the study holds meaningful insights for policymakers, energy policy practitioners, investors, and financial market participants to choose between clean (dirty) investments based on their asymmetric efficiency (inefficiency).
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Affiliation(s)
- Muhammad Abubakr Naeem
- Accounting and Finance Department, United Arab Emirates University, P.O. Box 15551, Al-Ain, United Arab Emirates
- South Ural State University, Lenin Prospect 76, Chelyabinsk 454080, Russian Federation
| | - Sitara Karim
- Nottingham University Business School, University of Nottingham Malaysia Campus, Semenyih, Malaysia
| | - Saqib Farid
- Dr Hassan Murad School of Management, University of Management and Technology, Lahore, Pakistan
| | - Aviral Kumar Tiwari
- Indian Institute of Management Bodh Gaya, Bodh Gaya, India
- Rajagiri Business School, Rajagiri Valley Campus, Kochi, India
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Naz F, Karim S, Houcine A, Naeem MA. Fintech Growth during COVID-19 in MENA Region: Current Challenges and Future prospects. ELECTRONIC COMMERCE RESEARCH 2022. [PMCID: PMC9295879 DOI: 10.1007/s10660-022-09583-3] [Citation(s) in RCA: 2] [Impact Index Per Article: 1.0] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 06/17/2023]
Abstract
In the wake of ongoing challenges faced by the disruption of COVID-19, the current study attempts to investigate fintech growth during COVID-19 in the Middle East and North African (MENA) region. The study applies descriptive analysis, content analysis, and keyword selection criteria to segregate current challenges and future prospects of fintech growth in the MENA region. Our study comprises 250 research articles, web reports, news articles, opinion papers, and commentaries. The study reported privacy issues, cybercrimes, financial disruption and instability, exploitation of social norms and values, rising inequalities, and non-compliance of regulatory authorities as major challenges posed by fintech startups in the MENA region. On the contrary, the future prospects of FinTech growth in the MENA region are employment opportunities, decentralization, cost-effectiveness, financial outreach, networking, and breaking traditional financial biases. The study recommended multiple implications for policymakers, regulation bodies, countries in the MENA region, and fintech developers.
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Affiliation(s)
- Farah Naz
- Department of Accounting and Finance, Kinnaird College for Women, Lahore, Pakistan
| | - Sitara Karim
- Nottingham University Business School, University of Nottingham, Malaysia Campus, Semenyih, Malaysia
| | - Asma Houcine
- GEF2A-Lab, Higher Institute of Management of Tunis (ISGT), University of Tunis, Tunis, Tunisia
- Dubai Business School (DBS), University of Dubai, Dubai, United Arab Emirates
| | - Muhammad Abubakr Naeem
- Accounting and Finance Department, United Arab Emirates University, P.O. Box 15551, Al-Ain, United Arab Emirates
- South Ural State University, Lenin Prospect 76, 454080 Chelyabinsk, Russian Federation
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