nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2021‒08‒09
25 papers chosen by

  1. TARGET2 - The European system for large-value payments settlement By Paolo Bramini; Matteo Coletti; Francesco Di Stasio; Pierfrancesco Molina; Vittorio Schina; Massimo Valentini
  2. Catch me (if you can): assessing the risk of SARS-CoV-2 transmission via euro cash By Tamele, Barbora; Zamora-Pérez, Alejandro; Litardi, Chiara; Howes, John; Steinmann, Eike; Todt, Daniel
  3. Cash and COVID-19: The impact of the second wave in Canada By Heng Chen; Walter Engert; Marie-Hélène Felt; Kim P. Huynh; Gradon Nicholls; Daneal O'Habib; Julia Zhu
  4. The impact of machine learning and big data on credit markets By Eccles, Peter; Grout, Paul; Siciliani, Paolo; Zalewska, Anna
  5. Online Supplements: Combining Crowd and Machine Intelligence to Detect False News in Social Media By Wei, Xuan; Zhang, Zhu; Zhang, Mingyue; Chen, Weiyun; Zeng, Daniel Dajun
  6. A digital euro: a contribution to the discussion on technical design choices By Emanuele Urbinati; Alessia Belsito; Daniele Cani; Angela Caporrini; Marco Capotosto; Simone Folino; Giuseppe Galano; Giancarlo Goretti; Gabriele Marcelli; Pietro Tiberi; Alessia Vita
  7. Freelance platform work in the Russian Federation 2009-2019 By Shevchuk, Andrey.; Strebkov, Denis.
  8. The Positive Case for a CBDC By Andrew Usher; Edona Reshidi; Francisco Rivadeneyra; Scott Hendry
  9. Understanding the Costs and Benefits of Digital Platforms and the Implications for Policymaking and Regulation By Serafica, Ramonette B.; Oren, Queen Cel A.
  10. Implementing the BBE Agent-Based Model of a Sports-Betting Exchange By Dave Cliff; James Hawkins; James Keen; Roberto Lau-Soto
  11. Cross-Border Issues for Digital Platforms: A Review of Regulations Applicable to Philippine Digital Platforms By Serzo, Aiken Larisa O.
  12. Designing Digital Actor Engagement Platforms for Local High Streets: An Action Design Research Study By Christian Bartelheimer
  13. From Oligopolistiic Digital Platforms to Open/Cooperative ones ? By Julienne Brabet; Lucy Taska; Corinne Vercher-Chaptal
  14. Financial intermediation and risk in decentralized lending protocols By Carlos Castro-Iragorri; Julian Ramirez; Sebastian Velez
  15. Determinants of ICO Success and Post-ICO Performance By Aylin Aslan; Ahmet Sensoy; Levent Akdeniz
  16. Digital transformation, COVID-19, and the future of work By Schilirò, Daniele
  17. Attention economics of Instagram stars: #instafame and sex sells? By Gänßle, Sophia
  18. Systematizing the Lexicon of Platforms in Information Systems: A Data-Driven Study By Christian Bartelheimer
  19. Towards Measuring the Platform Economy: Concepts, Indicators, and Issues By Albert, Jose Ramon G.
  20. Serving the Underserved: Microcredit as a Pathway to Commercial Banks By Sumit Agarwal; Thomas Kigabo; Camelia Minoiu; Andrea F. Presbitero; André F. Silva
  21. The Influence of Top Management Team (TMT) Characteristics Toward Indonesian Banks Financial Performance During The Digital Era (2014-2018) By Mojambo, Gabriel A.M.; Tulung, Joy Elly; Saerang, Regina Trivena
  22. Empirical Studies on the Role of Input Control on Digital Platforms By Croitor, Evgheni
  23. Partisan selective exposure in news consumption By Sylvain Dejean; Marianne Lumeau; Stéphanie Peltier
  24. Fake News Acceptance by Demographics and Culture On Social Media By Sheikh, Muhammad Ammad; Mumtaz, Talha; Sohail, Nabeel; Ahmed, Bilal; Noor, Zain
  25. Examining the Impact of Social Capital Scales on Brand Commitment In An Online Brand Community By Minhaj, Rutaba; Tasneem, Abdul Rafe; Farrukh, Maira; Ziarab, Mohammad; Raza, Muhammad Ali

  1. By: Paolo Bramini (Bank of Italy); Matteo Coletti (Bank of Italy); Francesco Di Stasio (Bank of Italy); Pierfrancesco Molina (Bank of Italy); Vittorio Schina (Bank of Italy); Massimo Valentini (Bank of Italy)
    Abstract: TARGET2 is the main European platform for the settlement of large-value payments in central bank money open to Central banks and commercial banks participation. TARGET2 was a prerequisite of the Monetary Union establishment and is a pillar for its functioning, for the single monetary policy conduct and the financial integration of the euro area. This publication explains its genesis and functioning, and outlines its possible future developments.
    Keywords: payment systems, market infrastructures, gross settlement
    JEL: E42 E58
    Date: 2021–07
  2. By: Tamele, Barbora; Zamora-Pérez, Alejandro; Litardi, Chiara; Howes, John; Steinmann, Eike; Todt, Daniel
    Abstract: In the light of fears that the SARS-CoV-2 virus might be transmitted via cash – fears that were stoked by statements in the media and from public authorities – this paper aims to address the following issues: (1) to provide a descriptive account of the change in the circulation of euro banknotes and the use of cash in transactions during the pandemic; and (2) to assess the survivability of the virus on cash and the potential transmission risks. The pandemic has caused a significant increase in demand for cash as a store of value but a decrease in the use of cash in transactions. Although citizens reported using cash less in transactions partly out of fear of infection, research confirms that the risk of the virus being transmitted by banknotes and coins is very low. This supports the findings from the scientific community concluding that SARS-CoV-2 mainly spreads via respiratory fluids and airborne transmission, and that surfaces play a very minor role. JEL Classification: I10, I12, E41, E58
    Keywords: banknotes, cash demand, cash use, coins, COVID-19 pandemic, safety, SARS-CoV-2 virus, survivability, transferability
    Date: 2021–07
  3. By: Heng Chen; Walter Engert; Marie-Hélène Felt; Kim P. Huynh; Gradon Nicholls; Daneal O'Habib; Julia Zhu
    Abstract: We use consumer surveys conducted in April, July and November 2020 to study how the COVID-19 pandemic affected the demand for cash and the use of various methods of payment. Continuing from Chen et al. (2020, 2021), we use data from the Bank Note Distribution System (BNDS) to track how the amount of cash in circulation changed throughout 2020. The November 2020 survey included a three-day payment diary. We compare this diary with similar diaries from 2009, 2013 and 2017 to study long-term trends in cash use and payment methods.
    Keywords: Bank notes; Central bank research; Coronavirus disease (COVID-19); Digital currencies and fintech; Econometric and statistical methods
    JEL: C12 E4 O54
    Date: 2021–07
  4. By: Eccles, Peter (Bank of England); Grout, Paul (Bank of England); Siciliani, Paolo (Bank of England); Zalewska, Anna (University of Bath)
    Abstract: There is evidence that machine learning (ML) can improve the screening of risky borrowers, but the empirical literature gives diverse answers as to the impact of ML on credit markets. We provide a model in which traditional banks compete with fintech (innovative) banks that screen borrowers using ML technology and show that the impact of the adoption of the ML technology on credit markets depends on the characteristics of the market (eg borrower mix, cost of innovation, the intensity of competition, precision of the innovative technology, etc.). We provide a series of scenarios. For example, we show that if implementing ML technology is relatively expensive and lower-risk borrowers are a significant proportion of all risky borrowers, then all risky borrowers will be worse off following the introduction of ML, even when the lower-risk borrowers can be separated perfectly from others. At the other extreme, we show that if costs of implementing ML are low and there are few lower-risk borrowers, then lower-risk borrowers gain from the introduction of ML, at the expense of higher-risk and safe borrowers. Implications for policy, including the potential for tension between micro and macroprudential policies, are explored.
    Keywords: Adverse selection; banking; big data; capital requirements; credit markets; fintech; machine learning; prudential regulation
    JEL: G21 G28 G32
    Date: 2021–07–09
  5. By: Wei, Xuan; Zhang, Zhu; Zhang, Mingyue; Chen, Weiyun; Zeng, Daniel Dajun
    Abstract: This is the online supplements to paper "Combining Crowd and Machine Intelligence to Detect False News in Social Media", which is forthcoming at Management Information Systems Quarterly.
    Date: 2021–07–04
  6. By: Emanuele Urbinati (Bank of Italy); Alessia Belsito (Bank of Italy); Daniele Cani (Bank of Italy); Angela Caporrini (Bank of Italy); Marco Capotosto (Bank of Italy); Simone Folino (Bank of Italy); Giuseppe Galano (Bank of Italy); Giancarlo Goretti (Bank of Italy); Gabriele Marcelli (Bank of Italy); Pietro Tiberi (Bank of Italy); Alessia Vita (Bank of Italy)
    Abstract: In the last decade, the advent of new technologies has dramatically changed the banking and financial ecosystem. Financial operators have transformed their services in the context of the Fintech phenomenon; households’ payment habits are rapidly changing as well, embracing the revolution brought by the digital innovations. In this context, a number of central banks are devoting significant resources to examining the feasibility of introducing a digital currency as a complement to physical money. After an introduction that illustrates the main characteristics defining a Central Bank Digital Currency (CBDC), the paper presents ongoing CBDC-related work around the globe, discusses how a digital currency could support a central bank in performing its functions, and analyses its key features. The paper then illustrates a possible digital euro solution based on the integration of an account-based platform with a DLT-based one. The integration of these two components would make it possible to reap the benefits of two complementary solutions, reciprocally balancing their advantages and disadvantages, as regards, for instance, privacy. Finally, the paper presents the findings of experiments on the digital euro carried out by experts of the euro-area National Central Banks and the ECB; according to the results of those experiments, the integration of an account-based platform with a DLT-based one may provide a sound basis on which to build a fully-fledged solution, capable of meeting both regulatory and retail users’ needs.
    Keywords: digital euro, payment systems, financial market infrastructure, blockchain
    JEL: E42
    Date: 2021–07
  7. By: Shevchuk, Andrey.; Strebkov, Denis.
    Abstract: This paper traces the development of freelance platform work in the Russian Federation based on unique data from four online surveys conducted over the period 2009 and 2019 via the leading platform for creative and knowledge- based work and analyses the working conditions and well-being of the workers.
    Date: 2021
  8. By: Andrew Usher; Edona Reshidi; Francisco Rivadeneyra; Scott Hendry
    Abstract: In this paper we discuss the competition and innovation arguments for issuing a central bank digital currency (CBDC). A CBDC could be an effective competition policy tool for payments. On innovation, we argue that a CBDC could be necessary to support the vibrancy of the digital economy by helping solve market failures and fostering competition and innovation in new digital payments markets. Overall, competition and innovation are supporting arguments for issuing a CBDC.
    Keywords: Digital currencies and fintech; Financial institutions; Financial stability
    JEL: E58 L5
    Date: 2021–07
  9. By: Serafica, Ramonette B.; Oren, Queen Cel A.
    Abstract: This paper examines how digital platforms work and reviews their impacts across different sectors. It looks at the experience of the Philippines and other countries focusing on e-commerce and ride-hailing/delivery service platforms. Government-initiated platforms and applications in agriculture were also discussed. <p>The review of the literature highlights the various positive and negative effects of digital platforms in achieving inclusive and sustainable economic development. The emergence of various digital platforms and the technologies that drive them will continue to shape our economy and society in ways that we cannot yet fully anticipate. How well we manage the risks and exploit the opportunities will largely depend on finding the appropriate role of the government in the platform economy and the quality of regulatory governance. <p> Comments to this paper are welcome within 60 days from date of posting. Email
    Keywords: digital platforms, platform economy, multisided platforms
    Date: 2020
  10. By: Dave Cliff; James Hawkins; James Keen; Roberto Lau-Soto
    Abstract: We describe three independent implementations of a new agent-based model (ABM) that simulates a contemporary sports-betting exchange, such as those offered commercially by companies including Betfair, Smarkets, and Betdaq. The motivation for constructing this ABM, which is known as the Bristol Betting Exchange (BBE), is so that it can serve as a synthetic data generator, producing large volumes of data that can be used to develop and test new betting strategies via advanced data analytics and machine learning techniques. Betting exchanges act as online platforms on which bettors can find willing counterparties to a bet, and they do this in a way that is directly comparable to the manner in which electronic financial exchanges, such as major stock markets, act as platforms that allow traders to find willing counterparties to buy from or sell to: the platform aggregates and anonymises orders from multiple participants, showing a summary of the market that is updated in real-time. In the first instance, BBE is aimed primarily at producing synthetic data for in-play betting (also known as in-race or in-game betting) where bettors can place bets on the outcome of a track-race event, such as a horse race, after the race has started and for as long as the race is underway, with betting only ceasing when the race ends. The rationale for, and design of, BBE has been described in detail in a previous paper that we summarise here, before discussing our comparative results which contrast a single-threaded implementation in Python, a multi-threaded implementation in Python, and an implementation where Python header-code calls simulations of the track-racing events written in OpenCL that execute on a 640-core GPU -- this runs approximately 1000 times faster than the single-threaded Python. Our source-code for BBE is freely available on GitHub.
    Date: 2021–08
  11. By: Serzo, Aiken Larisa O.
    Abstract: This paper identifies certain policy issues in the current regulatory infrastructure of the Philippines, which may prevent digital platforms from innovating and participating in the global digital economy. <p>In brief, these policy issues relate to the incoherence between the national innovation strategy of the government and the mishmash of regulations that digital platforms are subjected to. In particular, this relates to investment regulations, as well as regulations on mass media, retail, advertising, logistics, telecommunications, and education. Such landscape has led to a regulatory environment that is unable to provide certainty as to the legality of the activities of Philippine-based digital platforms. <p>There is a plethora of constitutional, statutory, and policy support for innovation, e-commerce, digitization, and entrepreneurship in the Philippines. However, there is a disconnect between these policies and the environment created by the actual implementation of the regulations. <p> Comments to this paper are welcome within 60 days from date of posting. Email
    Keywords: regulatory reform, digital platforms, foreign direct investments, internet law, mass media, startups, internet economy
    Date: 2020
  12. By: Christian Bartelheimer (Paderborn University; Paderborn University; Paderborn University; Paderborn University)
    Abstract: Digital platforms are intermediating entities that enable interactions between distinct but interdependent groups of actors in two- or multi-sided markets. While research has investigated the management and economic effects of platforms, there is little design knowledge on digital platforms that constitute actor engagement ecosystems. We set out to design, implement, and evaluate DigiStreet—a digital actor engagement platform for local high streets, providing location-based advertising (LBA) via Bluetooth low-energy (BLE) beacons. DigiStreet is the first instantiation of a digital actor engagement platform connecting stores, service providers, and restaurants with consumers in a local high street. Based on detailed field evidence from three interventions—including 150 SMEs and over 2,300 citizens—we develop a design theory for a new class of IT artifacts: digital actor engagement platforms for local high streets. Our empirical analysis also provides unique insights on how digital actor engagement platforms impact on actors in a high street and thus assesses the prospects and limitations of providing LBA via BLE beacons, contextualizing previous insights on digital platforms.
    Keywords: Digital Platform, Action Design Research, Design Theory, Actor Engagement, Engagement Platform, Location-Based Advertising, Bluetooth Low-Energy
    JEL: C71 D85 L22
    Date: 2021–07
  13. By: Julienne Brabet; Lucy Taska; Corinne Vercher-Chaptal (CEPN - Centre d'Economie de l'Université Paris Nord - UP13 - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Based on a literature review, this paper explores the disruptive nature of digitalization and the oligopolistic digital platforms that embody it, as well as the promises and difficulties of emergent open cooperative platforms. Before analysing the main questions raised by those platforms, we first propose a brief analysis of the digitalization process as a socio-technical mutation, of its risks and opportunities through four prospective scenarios. We then build a typology of the oligopolistic platforms at the heart of the present phase of digitalization that cooperative/open platforms aim to supplant or at least to challenge. Could the combination of the new open source movement, with the principles developed for successful commons and those of the older cooperatives offer an alternative? The obstacles are huge, and the questions raised much more abundant than the answers brought by theory and/or experimentation. The development of alternative platforms is thus questioning modes of: Distribution of the bundles of rights and governance; Centralization and decentralization; Autonomy and synergy; Choice of activities; Growth; Differentiation, standardization, convergence and hybridization; Localisation, globalisation and glocalization; Fair pricing; Organization of work, protection of workers and more largely citizen; Inclusion and exclusion of stakeholders; Funding; Relationship to the State and private or public entities ... among other, often combined, dimensions. Most importantly, alternative platform development also questions the capacity for cooperation of a highly socialized human nature.
    Keywords: Alternative Platforms,Oligopolist Platforms,Digitalization
    Date: 2020–12–04
  14. By: Carlos Castro-Iragorri; Julian Ramirez; Sebastian Velez
    Abstract: We provide an overview of decentralized protocols like Compound and Aave that offer collateralized loans for cryptoasset investors. Compound and Aave are two of the most important application in the decentralized finance (DeFi) ecosystem. Using publicly available information on rates, supply and borrow activity, and accounts we analyze different elements of the protocols. In particular, we estimate ex-post margins that give a comprehensive account of the cost of financial intermediation. We find that ex-post margins considering all markets are 1% and lower for stablecoin markets. In addition, we estimate quarterly indicators regarding solvency, asset quality, earnings and market risk similar to the ones used in traditional banking. This provides a first look at the use of these metrics and a comparison between the similarities and challenges to our understanding of financial intermediation in these protocols based on tools used for traditional banking.
    Date: 2021–07
  15. By: Aylin Aslan; Ahmet Sensoy; Levent Akdeniz
    Abstract: Initial coin offerings (ICOs) have emerged as an alternative way of raising funds for entrepreneurial ventures to develop a new project or product. In this study, a comprehensive analysis is conducted on the determinants of ICO success and aftermarket performance of ICOs. Our evidence suggests that ICOs with higher ratings, shorter planned token sale duration, smaller share for token sale, larger number of experts and more members in the developing team have a greater likelihood of success and raising more funds. We also show that offer price and market sentiment play a major role in explaining longer term post-ICO performance. Yet, key to a successful ICO and post-ICO performance differ between boom vs bust periods in the cryptocurrency markets.
    Keywords: Fundraising success, Initial coin offerings, Post-ICO performance, underpricing
    JEL: G24 L26 M13
    Date: 2021
  16. By: Schilirò, Daniele
    Abstract: The COVID-19 pandemic has caused an acceleration of digital transformation, forcing countries and organizations around the world to make big changes in people’s lives. This paper analyses the diffusion of the digital economy and highlights the capabilities and readiness of economies to undertake the process of digital transformation. It also points out that the digital transformation is profoundly changing the global economy and society, not necessarily benefiting everyone. The challenge is to avoid the risk that the new digital system creates a more “restricted” economic and social environment, with the digital divide affecting many people across the world. The study also explores the implications of both digitization and digital technologies on the labor market and future jobs. COVID-19 and digital transformation have overturned assumptions about how individuals work by demanding new tasks and skills from employees. The paper emphasizes that any process of automation involves substituting machines for labor and leads to the displacement of workers, although there are counterbalancing forces. At the same time, digital transformation and its processes offer opportunities to create new tasks and new professional figures. However, the key to success for a fair and inclusive digital transformation lies in the joint efforts of state, business, and people.
    Keywords: digital transformation; digital technologies; COVID-19; digital divide; smart working; job displacement; future jobs
    JEL: J2 J24 M53 M54 O33
    Date: 2021–06
  17. By: Gänßle, Sophia
    Abstract: Social media stars create stardom with uploads on social media pages like YouTube, TikTok or Instagram. One of the most popular platforms, especially designed to upload picture contents, is the service "Instagram" owned by Facebook. The growing social, cultural and economic power of social media star phenomenon raises the question about key drivers of success. Does body exposure drive Instagram success? Is there a difference between male and female content in this regard? This paper empirically analyses 500 top Instagram stars within the categories (1) fashion and beauty, (2) fitness and sports, (3) music, (4) photo and arts, (5) food and vegan. The unbalanced panel data set consists of 100 stars within each category over an observation period of five months. The data provides information on popularity measurements, such as subscribers, likes and comments, and most importantly, price estimates per post. Since influencers are not paid by the platform, but mainly by advertisers for promotion of their products, the estimated price per upload combined with the posting frequency serve as a valid proxy for weekly revenue and economic success. Mean comparison tests show that accounts with focus on female accounts have a significantly higher degree in body exposure, while the price per picture is higher for male content. Weekly revenues do not significantly diverge. Furthermore, using panel regressions, I estimate the effect of body exposure and sex on advertising revenue. The results show that body exposure has a positive effect, whereas the sex has no significant influence in the regression estimations. Eventually, this raises the question of a gender pay gap in social media.
    Keywords: cultural and creative industries,attention economics,superstar theory,social media stars,influencers,Instagram,gender pay gap
    Date: 2021
  18. By: Christian Bartelheimer (Paderborn University; Paderborn University; Hamm-Lippstadt University of Applied Sciences; Paderborn University)
    Abstract: While the Information Systems (IS) discipline has researched digital platforms extensively, the body of knowledge appertaining to platforms still appears fragmented and lacking conceptual consistency. Based on automated text mining and unsupervised machine learning, we collect, analyze, and interpret the IS discipline's comprehensive research on platforms—comprising 11,049 papers spanning 44 years of research activity. From a cluster analysis concerning these concepts’ semantically most similar words, we identify six research streams on platforms, each with their own platform terms. Based on interpreting the identified concepts vis-à-vis the extant research and considering a temporal perspective on the concepts’ application, we present a taxonomy and a lexicon of platform concepts, to guide further research on platforms in the IS discipline. Researchers and managers can build on our results to position their work appropriately, applying the platform concepts that fit their results best. On a community level, we contribute to establishing a more consistent view on digital platforms as a prevalent topic in IS research that keeps advancing to new frontiers.
    Keywords: platform; text mining; machine learning; data communications; interpretive research; systems design and implementation
    JEL: C71 D85 L22
    Date: 2021–07
  19. By: Albert, Jose Ramon G.
    Abstract: As digital platforms provide consumers opportunities to interact with suppliers of goods and services through the internet, these platforms have radically transformed business activities, as well as the nature of work. The disruptions from the novel coronavirus pandemic also show how platforms enable people to cope with disruptions and to increasingly produce goods and services themselves in some sectors, such as transportation services, food and accommodation, and culture and recreational industries. These platforms provide intermediary and financial services, either implicitly or explicitly, and it is important that policymakers, businesses, and people, in general, have a better sense of the platform economy. National statistical systems, however, hardly give a clear and integrated portrait of the role, nature and size of the platform economy in large part because of measurement issues. This paper defines platforms, typologies and related definitions and classifications, describes drivers of value creation and capture in platforms, and discusses policy implications. It also discusses the major challenges in data collection, arising from the cross-border nature of platforms, as well as the complex activities in a platform economy, among others. The paper also discusses, albeit briefly, some policy implications for the measurement of the platform economy to better understand the socioeconomic implications of increasing digitalization and the rise of the platform economy. <p>Comments to this paper are welcome within 60 days from date of posting. Email
    Keywords: indicators, digital economy, sharing economy, digital platforms, platform economy, data
    Date: 2020
  20. By: Sumit Agarwal; Thomas Kigabo; Camelia Minoiu; Andrea F. Presbitero; André F. Silva
    Abstract: A large-scale microcredit expansion program---together with a credit bureau accessible to all lenders---can enable unbanked borrowers to build a credit history, facilitating their transition to commercial banks. Loan-level data from Rwanda show the program improved access to credit and reduced poverty. A sizable share of first-time borrowers switched to commercial banks, which cream-skim less risky borrowers and grant them larger, cheaper, and longer-maturity loans. Switchers have lower default risk than non-switchers and are not riskier than other bank borrowers. Switchers also obtain better loan terms from banks compared with first-time bank borrowers without a credit history.
    Keywords: Access to credit; Microfinance; Unbanked; Credit bureau; Bank loans
    JEL: G21 O12 O55
    Date: 2021–07–15
  21. By: Mojambo, Gabriel A.M.; Tulung, Joy Elly; Saerang, Regina Trivena
    Abstract: Despite of the abundant opportunities in Indonesian bank industry, digital era began to challenge banks to fully embrace the use of technology (information) with the objective of prolong competitive advantage. An organization becomes a reflection of its top managers. In facing such challenges, Top Management Team (TMT) members initiative to overcome the current status quo, will be reflected to the company under their management. For this reason, an effective TMT structure is a mandatory during the digital era to digitalize banking firms. This research investigates the relationship between top management team characteristics and Indonesian banks financial performance during the digital era. For top management team characteristics, this research includes functional background, gender diversity, average age, level of education, IT Expertise, and experience in years. While to measure the performance of Indonesian banks financial performance the paper includes return on asset (ROA), capital adequacy ratio (CAR), and non-performing loan (NPL). The results show that gender diversity have positive significant influences on NPL, average age have positive significant influences on ROA, CAR, NPL, and IT expertise have positive significant influences on CAR.
    Keywords: Bank, Top Management Team, Financial Performance
    JEL: G2 G21 G3
    Date: 2020–01
  22. By: Croitor, Evgheni
    Abstract: Digital platforms such as Android, Uber or Airbnb have become hotspots of economic interactions between complementors (i.e., producers) and end-users (i.e., consumers). As the number of complementors and offered complements on digital platforms grow, platform providers need to exercise control to align their interests and strategies with those of the complementors. To manage complementors and their complements, platform providers draw on control modes. In this thesis, control mode refers to set of mechanisms employed by platform provider to control (e.g., approve, guide and monitor) complementors and their complements on digital platforms. To advance the emergent research in the field of control modes on digital platforms, this thesis focuses on a control mode that is widespread in practice but has been largely overlooked in IS research so far, namely input control. Input control can be described as the set of mechanisms used by the platform provider to screen and sort out complementors and their complements before entering the digital platform. Within five articles, this thesis addresses the role and importance of input control on digital platforms by investigating the effects of input control in four different platform contexts (i.e., mobile applications, web-browsers, crowdfunding and e-marketplaces). The first article describes the development of an enhanced conceptual definition for input control and a corresponding measurement scale for questionnaire-based survey research that helps us measure input control more accurately and gauge its impact on platform complementors. The developed measurement scale was rigorously validated in the context of mobile application platforms (i.e., Android and iOS) based on the guidelines and recommendations in extant scale development literature. The second article deals with the distinction between complementor-related and complement-related input control mechanisms that address complementors and complements, respectively. Using a combination of quantitative (i.e., survey) and qualitative (i.e., interviews) methods applied in the context of web-browser platforms (i.e., Chrome and Firefox), the results revealed that both mechanisms affect complementors’ overall perception of input control on digital platforms. Moreover, the results showed that complementors’ perceived usefulness of and satisfaction with a digital platform served as an important driving force through which perceived input control affects complementors’ continuance intentions. Drawing on IS control literature and goal attainment theory, the third article addresses the effects of input control and self control on complementors’ intentions to stay on their respective digital platform. Results of an online survey with complementors from two major reward-based crowdfunding platforms (i.e., Kickstarter and Indiegogo) revealed that input control reduces and self control increases complementors’ willingness to stay. Interestingly, these effects can be explained through the comparison of associated usefulness and effort of using the digital platform. The fourth article investigates the impact of input control and clan control in the context of e-marketplace platforms (i.e., Amazon and Etsy). The results revealed opposing effects of input control and clan control on complementors’ beliefs, attitudes and behavioral outcomes. In particular, whereas input control had a negative effect on complementors’ perceived usefulness, satisfaction and continuance intention, clan control exerted a positive effect on the observed variables. The fifth and last article examines the influence of input control on complementors’ performance. Results of a field survey with sellers on Amazon indicated that input control reduces complementors’ intrinsic motivation, resulting in a lower performance on a digital platform. Surprisingly, the findings revealed that input control has no direct effect on complementors’ performance when accounting for intrinsic motivation. Taken together, this thesis showcases the role and importance of input control and provides a deeper and more comprehensive understanding of how complementors perceive and react to input control mechanisms on digital platforms. Furthermore, the findings shed light on the underlying explanatory mechanisms of why the effects of input control on digital platforms unfold. As such, this thesis answers several calls for research in platform governance and control literature, and lays the foundation for future studies on digital platforms. The overarching contributions of this thesis for research consists of (1) investigating the effects of input control on complementors’ behavior and performance outcomes on digital platforms, and (2) exploring input control in various platform contexts with unique circumstances and influences as well as in combination with other control modes. Additionally, this thesis provides crucial insights for platform providers on how and why input control mechanisms affect complementors behavior and performance outcomes. The findings therefore provide valuable impetus for platform providers to maintain platforms’ long-term success und sustainability.
    Date: 2021
  23. By: Sylvain Dejean (CEREGE - CEntre de REcherche en GEstion - EA 1722 - Université de Poitiers - ULR - Université de La Rochelle - IAE Poitiers - Institut d'Administration des Entreprises (IAE) - Poitiers - Université de Poitiers); Marianne Lumeau (GRANEM - Groupe de Recherche Angevin en Economie et Management - Institut National de l'Horticulture et du Paysage - AGROCAMPUS OUEST - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UA - Université d'Angers); Stéphanie Peltier (CRHIA - Centre de recherches en histoire internationale et Atlantique - EA 1163 - ULR - Université de La Rochelle - UFR HHAA - Université de Nantes - UFR Histoire, Histoire de l'Art et Archéologie - UN - Université de Nantes)
    Abstract: The development of online social media has raised concerns about how individuals are overexposed to partisan news. However, social media are only a part of the daily media diet of an average consumer (Allcott and Gentzkow, 2017; Allen et al., 2020, Guess et al., 2019). The aim of this paper is therefore to examine partisan news exposure with respect to the entire media diet. We develop a partisan selective exposure index that indicates the over-representation of partisan political opinions in individual daily news consumption. Our analysis of data from a survey of 4000 representative individuals in France regarding their news consumption and political stance shows that on average, partisan exposure is low when social media are excluded. Among traditional media, online versions of newspapers and radio contribute most to partisan selective exposure. The introduction of social media increases the index, especially for the youngest consumers. Another striking result is that the index is higher for far-left and far-right news consumers, and increases to between 55% and 78% for far-left groups, and between 40% and 58% for far-right groups when social media consumption is included.
    Keywords: Echo Chamber,Partisan news,Internet and Social Media,Selective Exposure,Media
    Date: 2021–07–22
  24. By: Sheikh, Muhammad Ammad; Mumtaz, Talha; Sohail, Nabeel; Ahmed, Bilal; Noor, Zain
    Abstract: The objective for this research to find the effects of sub dimension of culture which is masculinity/femininity, individualism/collectivism, power distance and uncertainty avoidance but comprehensibility is a mediator so in which it effects social media usage. In our research the 4 sub dimension of culture, comprehensibility, fake news intension to social media usage and social media usage is an independent variable but on the other hand fake news and it all social media apps like Facebook, Instagram, Snapchat and WhatsApp which is a dependent variable. For this research, the data is collected from around 200 students in general from Karachi. The target population for this research are the Facebook and all social media users specifically in Karachi. The sampling technique that we chose is simple random probability design. PLS-SEM is the statistical technique used in our conducting research. The instrument used in this research is Questionnaire to collect data from the target audience. The findings of the research indicated that fake news intension to social media usage have a significant positive impact on social media usage. Similarly, comprehensibility has significant positive effect on fake news intension to social media usage. But individualism/collectivism has negative insignificant effect on comprehensibility. Power distance has negative insignificant effect on comprehensibility. Comprehensibility toward the sub dimension of culture which include masculinity/femininity and uncertainty avoidance has a significant positive effect on the sub dimension of culture. This study will help the society, senior management stakeholders, and policymakers in the country when it comes to the propagation of fake news on social media usage.
    Keywords: Masculinity/femininity, Individualism/collectivism, power distance, uncertainty avoidance, comprehensibility, fake news intension to social media usage, social media usage and fake news
    JEL: I3 I31 M1
    Date: 2021
  25. By: Minhaj, Rutaba; Tasneem, Abdul Rafe; Farrukh, Maira; Ziarab, Mohammad; Raza, Muhammad Ali
    Abstract: The Purpose of this study is to examine the relationship between interaction, trust, reciprocity, identification, language, vision, bonding and bridging on brand commitment in an online brand community. The sample size of our research is 250; the data was collected from the teachers and Students of the business university. In this research, data is analyzed using (PLS-SEM) model. The findings of our study will benefit retailers and marketers of Nestle, in the context of community engagement and brand knowledge by offering information on how they may enhance social connection. Our findings reveal that shared vision has a positive impact on brand commitment. Hence, company’s top management should share the vision with customers and colleagues so that they become more involved and committed to their growth as a brand. The results identified that there is a significant and direct effect of trust, shared value, shared language, shared vision, reciprocity and bridging on Brand commitment. Whereas, there is an insignificant and direct effect of bonding and identification on brand commitment in an online brand community. Furthermore, we found out that factors like trust, shared value, language and vision, bridging acts as a strong determinant of brand commitment and our findings add value to the area of literature where researchers seek to investigate the role of these variables in online brand communities.
    Keywords: Social capital, brand commitment, bonding, bridging, online brand community
    JEL: M1 M14
    Date: 2021

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.