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on Payment Systems and Financial Technology |
| By: | Carlos Alberto Durigan Junior; Mauro De Mesquita Spinola; Rodrigo Franco Gon\c{c}alves; Fernando Jos\'e Barbin Laurindo |
| Abstract: | Central Bank Digital Currency (CBDC) can be defined as a virtual currency based on node network and digital encryption algorithm issued by a country which has a legal credit protection. CBDCs are supported by Distributed Ledger Technologies (DLTs), and they may allow a universal means of payments for the digital era. There are many ways to proceed, they all require central banks to develop technological expertise. Considering these points, it is important to understand the new IT governance in the financial markets due to CBDC and digital economy. Information Technology is an essential driver that will allow the new financial industry design. This paper has the objective to answer two questions through an updated Systematic Literature Review (SLR). The first question is What IT resources and tools have been considered or applied to set the governance of CBDC adoption? The second; Identify IT governance models in the financial market due to CBDC adoption. Bank for International Settlements (BIS) publications, Scopus and Web of Science were considered as sources of studies. After the strings and including criteria were applied, fourteen papers were analyzed. This paper finds many IT resources used in the CBDC adoption and some preliminary IT design related to the IT governance of CBDC, in the results and discussion section the findings are more detailed. Finally, limitations and future work are considered. Keywords: Blockchain, Central Bank Digital Currency (CBDC), Digital Economy, Distributed Ledger Technology (DLT), Information Technology (IT), IT governance. |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2407.07898 |
| By: | Clément Landormy |
| Abstract: | This study comprehensively analyses Bitcoin’s price dynamics amidst the volatility of 2017-2018, considering various influencing factors. Drawing from Fisher’s Equation of Exchange (1911), Keynes’ liquidity preference theory (1936), and prior research insights, we formulate an Equation of Bitcoin Exchange, setting the stage for empirical testing. Employing autoregressive distributed lag models in both linear (ARDL) and nonlinear (NARDL) frameworks, we scrutinise daily data from 2017 to 2018. Our findings underscore the predominant impact of internal factors, driven by market dynamics and technological advancements, on Bitcoin prices, with investment attractiveness following closely behind. Surprisingly, macroeconomic and financial variables demonstrate relatively less influence. While Bitcoin may not serve as a direct store of value like gold or offer complete hedging against US dollar fluctuations, its potential as a diversification tool in stock markets becomes apparent, barring short-term disruptions associated with Bitcoin price crashes. Moreover, factors related to investment attractiveness frequently exert downward pressure on Bitcoin prices, emphasising the speculative nature inherent in cryptocurrencies. Noteworthy is the positive short-term connection between Bitcoin prices and tether transactions, coupled with the positive long-term interaction between Bitcoin prices and crypto fundraising efforts at the peak of the ICO boom, signalling a pre-crash surge in 2017. Conversely, the long-term negative relationship between Bitcoin prices and Tether transactions suggests that Tether acts as a hedge against Bitcoin price crashes. |
| Keywords: | MBitcoin, NARDL, Market forces, Safe haven, Tether. |
| JEL: | E42 E44 G11 G12 G15 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ulp:sbbeta:2024-31 |
| By: | Breen, Casey; Fatehkia, Masoomali; Yan, Jiani; Zhao, Xinyi; Leasure, Douglas R. (Leverhulme Centre for Demographic Science, University of Oxford); Weber, Ingmar (Qatar Computing Research Institute); Kashyap, Ridhi |
| Abstract: | The digital revolution has ushered in many societal and economic benefits. Yet access to digital technologies such as mobile phones and internet remains highly unequal, especially by gender in the context of low- and middle-income countries. While national-level estimates are increasingly available for many countries, reliable, quantitative estimates of digital gender inequalities at the subnational level are lacking. These estimates, however, are essential for monitoring gaps within countries and implementing targeted interventions within the global sustainable development goals, which emphasize the need to close inequalities both between and within countries. We develop estimates of internet and mobile adoption by gender and digital gender gaps at the subnational level for 2, 158 regions in 118 low- and middle-income countries (LMICs), a context where digital penetration is low and national-level gender gaps disfavoring women are large. We construct these estimates by applying machine-learning algorithms to Facebook user counts, geospatial data, development indicators, and population composition data. We calibrate and assess the performance of these algorithms using ground-truth data from subnationally-representative household survey data from 31 LMICs. Our results reveal striking disparities in access to mobile and internet technologies between and within LMICs, with implications for policy formulation and infrastructure investment. These disparities contribute to a global context where women are 21% less likely to use the internet and 17% less likely to own mobile phones than men, corresponding to over 385 million more men than women owning a mobile phone and over 360 million more men than women using the internet. |
| Date: | 2024–08–15 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:qnzsw |
| By: | Pierre C. Boyer; Germain Gauthier; Yves Le Yaouanq; Vincent Rollet; Benoît Schmutz-Bloch |
| Abstract: | We propose a theory of protest dynamics with heterogeneous protest technology and intensity. The ability to mobilize online reduces the likelihood of coordination failures at both the extensive (engagement) and intensive (violence) margins. Social media can initially help launch massive protests, but then encourage radical factions to turn violent and drive out moderates. Using both online and offline data, we show that the 2018 Yellow Vest uprising in France followed such a crowd-in-then-crowd-out sequence: early online and offline mobilizations reinforced each other, but online discussions quickly radicalized, moderates left, and a handful of violent protesters took over the streets. |
| Keywords: | protests, learning traps, crowding-out, violence, social media, NLP |
| JEL: | D72 D74 L82 Z13 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11257 |
| By: | Kishore Mullangi (Visa Inc.) |
| Abstract: | This study uses accelerated testing and modern technology to improve payment processing system security and efficiency. The primary goals are to identify and evaluate blockchain, AI, machine learning, and biometric authentication advances in protection and performance. The study uses secondary data to demonstrate the revolutionary power of these technologies and the importance of automated, continuous, and AI-driven testing. Main findings: blockchain is secure and decentralized, AI and ML improve real-time fraud detection, and biometric authentication lowers unwanted access. Faster testing methods identify and fix vulnerabilities, ensuring system integrity and meet changing regulatory demands. The study emphasizes the need for constant monitoring and investment in advanced testing technologies despite cybersecurity threats, regulatory compliance, interoperability, scalability, and user experience. Policy implications show that integrating these technologies and tackling associated problems can considerably improve payment processing system resilience and reliability, ensuring a secure and seamless user experience in a digital financial ecosystem. |
| Keywords: | Payment Processing, Blockchain, Accelerated Testing, Security Enhancement, Financial Transactions, Risk Management, Fraud Prevention, Machine Learning, Automation |
| Date: | 2023–07–27 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04647281 |
| By: | Kang, Gusang (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | This study examines how 'killer acquisitions' in the digital platform market have impacted innovation performance post-merger. This analysis focuses particularly on M&As among various types of corporate consolidations by digital platforms. It estimates factors influencing the probability of M&A by digital platforms and uses the technological similarity index between the acquiring digital platform and the acquired company as a key explanatory variable. Then, using the technological similarity index, the analysis categorizes the M&A cases involving digital platforms into 'killer acquisitions' and 'non-killer acquisitions' and compares innovation performance by type of acquisition. The analysis focused on identifying "killer acquisitions" by examining the technology similarity index between firms before and after M&As conducted by GAFAM. Killer acquisitions were defined as those with minimal change in the technology similarity index pre- and post-transaction. The study found that killer acquisitions negatively impact innovation, as measured by a significant decline in the number of patent applications from acquired companies, compared to non-killer acquisitions where patent applications tended to increase post-acquisition. These findings highlight the need for methodologies, such as the technological similarity index, to better identify and regulate such anti-competitive acquisitions in the digital platform sector. |
| Keywords: | Corporate Innovation; killer acquisitions; non-killer acquisitions; M&A |
| Date: | 2024–08–10 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kiepwe:2024_025 |
| By: | Wei-Ru Chen; A. Christian Silva; Shen-Ning Tung |
| Abstract: | This paper presents a comprehensive statistical analysis of the Web3 ecosystem, comparing various Web3 tokens with traditional financial assets across multiple time scales. We examine probability distributions, tail behaviors, and other key stylized facts of the returns for a diverse range of tokens, including decentralized exchanges, liquidity pools, and centralized exchanges. Despite functional differences, most tokens exhibit well-established empirical facts, including unconditional probability density of returns with heavy tails gradually becoming Gaussian and volatility clustering. Furthermore, we compare assets traded on centralized (CEX) and decentralized (DEX) exchanges, finding that DEXs exhibit similar stylized facts despite different trading mechanisms and often divergent long-term performance. We propose that this similarity is attributable to arbitrageurs striving to maintain similar centralized and decentralized prices. Our study contributes to a better understanding of the dynamics of Web3 tokens and the relationship between CEX and DEX markets, with important implications for risk management, pricing models, and portfolio construction in the rapidly evolving DeFi landscape. These results add to the growing body of literature on cryptocurrency markets and provide insights that can guide the development of more accurate models for DeFi markets. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2408.07653 |
| By: | Aneta Napieralska; Przemys{\l}aw K\k{e}pczy\'nski |
| Abstract: | In the digital era, where innovative technologies like blockchain are revolutionizing traditional organizational paradigms, Decentralized Autonomous Organizations (DAOs) emerge as avant-garde models of collective governance. However, their unique structure challenges existing legal frameworks, especially concerning the liability of participants. This study focuses on analyzing the legal implications of the decentralized nature of DAOs, with a particular emphasis on the aspects of participant liability. Such considerations are essential for understanding how current legal systems might be adapted or reformed to effectively address these novel challenges. The paper examines the specificity of DAOs, highlighting their decentralized governance structure and reliance on smart contracts, which introduce unique issues related to the blurring of liability boundaries. It underscores how the anonymity of DAO participants and the automatic execution of smart contracts complicate the traditional concept of legal liability, both within the DAO context and in interactions with external parties. The analysis also includes a comparison between DAOs and traditional organizational forms, such as corporations and associations, to identify potential analogies and differences in participant liability. It explores how existing regulations on partner liability might be insufficient or inapplicable in the DAO context, prompting the search for new, innovative legal solutions. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2408.04717 |
| By: | Anders Brownworth; Jon Durfee; Michael Junho Lee; Antoine Martin |
| Abstract: | Blockchain-based systems are run by a decentralized network of participants and are designed to be censorship-resistant. We use sanctions imposed by the U.S. Department of Treasury on Tornado Cash (TC), a smart contract protocol, to study the impact and effectiveness of regulation in decentralized systems. We document an immediate and lasting impact on TC following the sanction announcement, measured by market reaction, transaction volume, and diversity of users. Still, net flows into TC contracts recover to and surpass pre-announcement levels for most pools, supporting viability of TC. Evidence on cooperation at the settlement layer is mixed: the aggregate share of non-cooperative blocks increases over time, but a shrinking number of actors process Tornado Cash transactions, indicating a fragility to the sustainability of censorship-resistance. Non-cooperation is not explained by tokenomics, and changes in perception around legal authority and clarity of regulation appears to be a key factor for whether to cooperate. |
| Keywords: | Decentralized systems, Digital assets, Privacy, Regulation, Sanctions |
| JEL: | G18 G28 G29 D40 F51 O30 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:snb:snbwpa:2024-09 |
| By: | Ozili, Peterson K |
| Abstract: | Using six widely accepted indicators, this study compares the progress made in financial inclusion in Nigeria, Sub-Saharan Africa and the rest of the World, with a view to deducing lessons that each entity can improve upon. We find that Nigeria outperformed sub-Saharan Africa in three indicators of financial inclusion while sub-Saharan Africa did better than Nigeria in one metric. Nigeria and sub-Saharan Africa exceeded the World average in informal borrowings. We also constructed an index of financial inclusion and found that financial institution account ownership, formal borrowing, informal borrowing and debit or card ownership are significant positive determinants of the financial inclusion index. These findings indicate that policymakers in Nigeria and sub-Saharan Africa have significant room for improving their financial inclusion standings towards the global average. We make recommendations on the aspects where policymakers can place their focus in pursuit of this goal. |
| Keywords: | financial inclusion, Nigeria, Sub-Saharan Africa, digital financial inclusion |
| JEL: | G00 G20 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121527 |
| By: | Teng Ye; Jingnan Zheng; Junhui Jin; Jingyi Qiu; Wei Ai; Qiaozhu Mei |
| Abstract: | While small businesses are increasingly turning to online crowdfunding platforms for essential funding, over 40% of these campaigns may fail to raise any money, especially those from low socio-economic areas. We utilize the latest advancements in AI technology to identify crucial factors that influence the success of crowdfunding campaigns and to improve their fundraising outcomes by strategically optimizing these factors. Our best-performing machine learning model accurately predicts the fundraising outcomes of 81.0% of campaigns, primarily based on their textual descriptions. Interpreting the machine learning model allows us to provide actionable suggestions on improving the textual description before launching a campaign. We demonstrate that by augmenting just three aspects of the narrative using a large language model, a campaign becomes more preferable to 83% human evaluators, and its likelihood of securing financial support increases by 11.9%. Our research uncovers the effective strategies for crafting descriptions for small business fundraising campaigns and opens up a new realm in integrating large language models into crowdfunding methodologies. |
| Date: | 2024–04 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2407.09480 |
| By: | Tatsuru Kikuchi |
| Abstract: | Recently, the invention of quantum computers was so revolutionary that they bring transformative challenges in a variety of fields, especially for the traditional cryptographic blockchain, and it may become a real thread for most of the cryptocurrencies in the market. That is, it becomes inevitable to consider to implement a post-quantum cryptography, which is also referred to as quantum-resistant cryptography, for attaining quantum resistance in blockchains. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2407.18966 |
| By: | Chiara Belletti; Elizaveta Pronkina; Michelangelo Rossi |
| Abstract: | Do rating systems provide incentives to sellers when they are about to exit a market? Using data from Airbnb, this paper examines how end-of-game considerations affect hosts’ effort decisions. We take advantage of a regulation on short-term rentals in the City of Los Angeles to identify hosts who anticipated their imminent exit from the platform due to non-compliance with new eligibility rules. We focus on hosts who left the platform as a result of the regulation and measure their effort with listing’s ratings in effort-related categories such as check-in, communication and cleanliness. With a Difference-in-Differences and Event Study approach, we compare how listing’s effort-related ratings changed, compared to ratings on location, after the regulation announcement and during its implementation. We document a statistically significant decrease in effort in the last periods of the hosts’ career. Our findings provide insights for platform managers, highlighting the adverse effects of end-of-game considerations on how rating systems affect sellers’ incentives for the provision of high-quality services. |
| Keywords: | rating systems, online reputation, digital platforms |
| JEL: | D82 L14 L86 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11253 |
| By: | Jean-Michel Tobelem (EIREST - Équipe interdisciplinaire de recherches sur le tourisme - UP1 - Université Paris 1 Panthéon-Sorbonne); Marie Ballarini (DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Digital technology has had a profound impact on most contemporary organisations. Museums have also undergone significant transformations, both in terms of strategy definition and the implementation of their actions, particularly in the post-Covid world. This article has a twofold objective: first, to identify best practices in the use of digital technology within museums, whether big or small; second, to suggest practical and concrete ways to implement digital in loyalty, promotion, communications and fundraising policies. The following questions are addressed:How should a digital strategy be integrated into the museum's global strategy?How can social media be used to optimise fundraising campaigns?How important should crowdfunding campaigns be in the broader fundraising policy?How should digital technology be used in subscriber loyalty campaigns through Customer Relationship Management (CRM) techniques?How can a personal relationship be maintained with major donors while using digital resources?What structure is needed to implement these actions within museums? |
| Keywords: | Economics, Finance, Business & Industry, Museum and Heritage Studies |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04662229 |
| By: | Juan Imbet (DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique); J. Anthony Cookson (Leeds School of Business [Boulder] - University of Colorado [Boulder]); Corbin Fox; Christoph Schiller; Javier Gil-Bazo |
| Abstract: | Social media fueled a bank run on Silicon Valley Bank (SVB), and the effects werefelt broadly in the U.S. banking industry. We employ comprehensive Twitter data toshow that preexisting exposure to social media predicts bank stock market losses inthe run period even after controlling for bank characteristics related to run risk (i.e., mark-to-market losses and uninsured deposits). Moreover, we show that social mediaamplifies these bank run risk factors. During the run period, we find the intensity ofTwitter conversation about a bank predicts stock market losses at the hourly frequency.This effect is stronger for banks with bank run risk factors. At even higher frequency, tweets in the run period with negative sentiment translate into immediate stock marketlosses. These high frequency effects are stronger when tweets are authored by membersof the Twitter startup community (who are likely depositors) and contain keywordsrelated to contagion. These results are consistent with depositors using Twitter tocommunicate in real time during the bank run. |
| Keywords: | Bank Runs, Social Media, Social Finance, FinTech |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04660083 |
| By: | Christopher J. Waller |
| Date: | 2024–08–19 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgsq:98691 |
| By: | Carlos Alberto Durigan Junior; Kumiko Oshio Kissimoto; Fernando Jose Barbin Laurindo |
| Abstract: | The fourth industrial revolution promotes the integration of Information Technology (IT) and strategic resources. New IT demands and uses have been leading to changes in business processes and corporate governance. Lately, the financial industry has adopted a new integrated banking model known as Open Banking (OB) and the advent of cryptocurrencies has led to the Digital Economy (DE) materialization. Considering these facts, this paper expects to point out through literature review some IT enabling factors that allow the conception of a new industry design (or governance) specifically in the financial industry illustrated by the cases of the Open Banking and Digital Economy. This paper is structured mostly on literature review, accompanied by results, discussions, and finally, conclusions are presented. It was found five potential enabling factors. Keywords: Digital Economy, Information Technology (IT), Open Banking. |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2407.09487 |
| By: | Hess, Sara; López Cabrera, Jesús Antonio; Romero, Indira |
| Date: | 2023–07–31 |
| URL: | https://d.repec.org/n?u=RePEc:ecr:col094:80460 |
| By: | Meriam MOUSSAHHIL (Faculté des sciences juridiques, économiques et sociales de Rabat Souissi); Lekbira ELFADI (Faculté des sciences juridiques, économiques et sociales de Rabat Souissi) |
| Abstract: | Aujourd'hui, le rôle que joue le digital dans le développement des services bancaires s'avère indéniable. Une course à l'introduction de nouvelles pratiques numériques est devenue un gage d'efficacité pour les banques. (Cherkaoui, 2020). Incontestablement, un des secteurs économiques le plus lourdement touché par ce phénomène est le secteur bancaire. Les banques proposent en effet un nombre croissant de services délivrés en ligne dont certaines étaient encore impossibles, ou tout de moins fort peu répandues, il y a quelques années. (Denoel, 2008). Le présent travail propose une étude théorique de l'impact des TIC et de la digitalisation des services bancaires sur les deux principaux acteurs en la matière, à savoir le client et la banque. En définitive, les résultats obtenus ont permis de démontrer que le digital représente l'une des plus importantes innovations technologiques dans le domaine des services bancaires, entrainant une transformation profonde de la relation entre le client et sa banque. Par conséquent, cette dernière se trouve alors dans l'obligation de s'adapter à ce changement en intégrant la dimension du digital dans la conception de son offre. Mots clés : Digitalisation - Services bancaires – Banque – TIC Abstract Today, the role of digital technology in the development of banking services is undeniable. A race to introduce new digital practices has become a guarantee of efficiency for banks (Cherkaoui, 2020). Undoubtedly, one of the most heavily impacted economic sectors by this phenomenon is the banking sector. Banks are offering an increasing number of online services, some of which were either impossible or very rare just a few years ago (Denoel, 2008). This work presents a theoretical study of the impact of ICT and the digitization of banking services on the two main stakeholders, namely the client and the bank. Ultimately, the results obtained have demonstrated that digital technology represents one of the most significant technological innovations in the field of banking services, leading to a profound transformation in the relationship between the client and the bank. Consequently, banks are compelled to adapt to this change by integrating digital dimensions into the design of their offerings. Keywords : Digitalization - Banking services – Banking – ICT |
| Keywords: | Digitalization, Banking services, Banking, ICT, Banque, TIC, Digitalisation, Services bancaires |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04649363 |
| By: | Gluschenko, Konstantin |
| Abstract: | Freezing the reserve assets of some countries and the danger of spreading it to other countries have made the existing international monetary system a very unreliable instrument of international financial relations. This will undoubtedly lead to its transformation, first of all, to a decrease in the role of the US dollar in international trade and finance. In this respect, it is interesting to trace the evolution of the international monetary system, looking at how the US dollar came to dominate it. This is the purpose of this paper. It examines the period before World War II and the emergence of the dollar on the world stage, the rise and fall of the Bretton Woods system, and the subsequent functioning of the international monetary system up to the present. |
| Keywords: | international monetary system gold standard Bretton Woods system International Monetary Fund Jamaica Accords exorbitant privilege |
| JEL: | F01 F33 N10 |
| Date: | 2024–08–16 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121740 |
| By: | Eleonora Alabrese; Francesco Capozza; Prashant Garg |
| Abstract: | The study measures scientists’ polarization on social media and its impact on public perceptions of their credibility. Analyzing 98, 000 scientists on Twitter from 2016 to 2022 reveals significant divergence in expressed political opinions. An experiment assesses the impact of online political expression on a representative sample of 1, 700 U.S. respondents, who rated vignettes with synthetic academic profiles varying scientists’ political affiliations based on real tweets. Politically neutral scientists are viewed as the most credible. Strikingly, on both the ’left’ and ’right’ sides of politically neutral, there is a monotonic penalty for scientists displaying political affiliations: the stronger their posts, the less credible their profile and research are perceived, and the lower the public’s willingness to read their content. The penalty varies with respondents’ political leanings. |
| Keywords: | Twitter, trust in science, ideological polarization, affective polarization, online experiment |
| JEL: | A11 C93 D72 D83 D91 I23 Z10 Z13 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11254 |
| By: | Yaoyue Tang; Karina Arias-Calluari; Michael S. Harr\'e |
| Abstract: | This paper compares and contrasts stationarity between the conventional stock market and cryptocurrency. The dataset used for the analysis is the intraday price indices of the S&P500 from 1996 to 2023 and the intraday Bitcoin indices from 2019 to 2023, both in USD. We adopt the definition of `wide sense stationary', which constrains the time independence of the first and second moments of a time series. The testing method used in this paper follows the Wiener-Khinchin Theorem, i.e., that for a wide sense stationary process, the power spectral density and the autocorrelation are a Fourier transform pair. We demonstrate that localized stationarity can be achieved by truncating the time series into segments, and for each segment, detrending and normalizing the price return are required. These results show that the S&P500 price return can achieve stationarity for the full 28-year period with a detrending window of 12 months and a constrained normalization window of 10 minutes. With truncated segments, a larger normalization window can be used to establish stationarity, indicating that within the segment the data is more homogeneous. For Bitcoin price return, the segment with higher volatility presents stationarity with a normalization window of 60 minutes, whereas stationarity cannot be established in other segments. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2408.02973 |
| By: | Preißner, Stephanie; Raasch, Christina; Schweisfurth, Tim |
| Abstract: | This study investigates the sources of disruptive innovation. The disruptive innovation literature suggests that these do not originate from existing customers, in contrast to what is predicted by the user innovation literature. We compile a unique content-analytical dataset based on 60 innovations identified as disruptive by the disruptive innovation literature. Using multinomial and binomial regression, we find that 43% of the sample disruptive innovations were originally developed by users. Disruptive innovations are more likely to originate from users (producers) if the environment has high turbulence in customer preferences (technology). Disruptive innovations that involve high functional (technological) novelty tend to be developed by users (producers). Users are also more likely to be the source of disruptive process innovations and to innovate in environments with weaker appropriability. Our article forges new links between the disruptive and the user innovation literatures, and offers guidance to managers on the likely source of disruptive threats. |
| Keywords: | appropriability regime, disruptive innovation, environmental turbulence, functional novelty, radical innovation, user innovation |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifwkie:293964 |
| By: | Sean S. Cao; Lin William Cong; Baozhong Yang |
| Abstract: | To understand the disruption and implications of distributed ledger technologies for financial reporting and auditing, we analyze firm misreporting, auditor monitoring and competition, and regulatory policy in a unified model. A federated blockchain for financial reporting and auditing can improve verification efficiency not only for transactions in private databases, but also for cross-chain verifications through privacy-preserving computation protocols. Despite the potential benefit of blockchains, private incentives for firms and first-mover advantages for auditors can create inefficient under-adoption or partial adoption that favors larger auditors. Although a regulator can help coordinate the adoption of technology, endogenous choice of transaction partners by firms can still lead to adoption failure. Our model also provides an initial framework for further studies of the costs and implications of the use of distributed ledgers and secure multi-party computation in financial reporting, including the positive spillover to discretionary auditing and who should bear the cost of adoption. |
| JEL: | D21 D40 G32 G34 M42 M48 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32763 |
| By: | Michelle W. Bowman |
| Date: | 2024–08–20 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgsq:98699 |
| By: | Jean Nsonsumuna |
| Abstract: | Les recherches sont unanimes sur le rôle des PME dans toutes les économies et sur leurs contraintes d’accès au financement. Ces contraintes entravent bien entendu le développement des PME et donc leur croissance. Les acteurs de la finance entrepreneuriale proposent une gamme d’instruments, notamment en matière de capital-investissement. Au sein de ceux-ci, le crowdfunding s’est considérablement développé au cours des dernières années à travers le monde. Il est devenu une alternative viable à différents modes de financement et se présente comme un outil adapté de financement des PME dans les économies en développement. Notre thèse étudie les conditions de succès de lancement et/ou de faisabilité d’une plateforme de crowdfunding en RDC en répondant à la question « Est-il est possible de lancer une plateforme de crowdfunding en République démocratique du Congo (RDC) ?».Notre thèse se compose de trois articles qui y répondent progressivement. Le premier article répond à la question « quels sont les défis et opportunités du crowdfunding en Afrique ?». Adoptant une approche écosystémique et à travers une analyse de 105 articles scientifiques, il synthétise l’état, les défis et opportunités du développement du crowdfunding en Afrique. Cette analyse ouvre des pistes de recherche notamment sur les conditions d’exploitation des plateformes qui font l’objet de notre deuxième article. Le deuxième article répond à la question « quelles sont les conditions de succès du lancement d’une plateforme de crowdfunding ?». Adoptant une approche qualitative basée sur la méthode d’analyse par théorisation ancrée et l’analyse de contenu, il développe un cadre d’analyse des conditions de succès de lancement d’une plateforme de crowdfunding en deux temps :(1) une consultation de 13 experts du crowdfunding à travers des entretiens semi-structurés, et (2) une enquête auprès de 115 plateformes à l’échelle internationale. Le cadre d’analyse s’est construit autour de quatre catégories des conditions de succès :infrastructure, offre et demande de financement et les modalités de mise en œuvre de la plateforme elle-même. Le test de ce cadre d’analyse en RDC a fait l’objet de notre troisième article. Le troisième article répond à la question « quelles sont les conditions de faisabilité et/ou de lancement d’une plateforme de crowdfunding en RDC ?». Adoptant une approche d’analyse qualitative sur base de 47 entretiens semi-structurés avec les acteurs clés de l’écosystème du crowdfunding congolais, il teste systématiquement toutes les conditions de succès d’une plateforme de crowdfunding. Les résultats de l’étude ont permis de constater que, sur le plan de la faisabilité d’une plateforme de crowdfunding, les conditions d’offre et de demande de financement sont satisfaisantes et valident l’intérêt d’une telle initiative. Cependant, les conditions d’infrastructure et de mise en œuvre sont moins satisfaisantes, notamment en ce qui concerne le cadre réglementaire, le fonctionnement des services financiers et le climat des affaires. Ces résultats apportent une réponse à notre question de recherche. Sur le plan d’offre et de demande de financement, il est possible de lancer une plateforme de crowdfunding en RDC. Par contre, les conditions d’infrastructure et de mise en œuvre de la plateforme elle-même sont moins satisfaites. Des adaptations sont nécessaires pour lancer une première plateforme de crowdfunding dans le pays. Ce qui nous permet de conclure en proposant un business modèle pour une plateforme de crowdlending en RDC ainsi que les étapes de son lancement. |
| Abstract: | Research is unanimous on the role of SMEs in all economies and their constraints in accessing financing. These constraints obviously hinder the development and thus the growth of SMEs. Players in entrepreneurial finance offer a range of instruments, particularly in private equity. Among these, crowdfunding has significantly developed over the past few years worldwide. It has become a viable alternative to various modes of financing and serves as a suitable financing tool for SMEs in developing economies.Our thesis studies the conditions for the successful launch and/or feasibility of a crowdfunding platform in the Democratic Republic of Congo (DRC) by addressing the question, "Is it possible to launch a crowdfunding platform in the Democratic Republic of Congo (DRC)?". Our thesis comprises three articles that progressively address this question.The first article answers the question, "What are the challenges and opportunities of crowdfunding in Africa?". Adopting an ecosystem approach and through an analysis of 105 scientific articles, it synthesizes the state, challenges, and opportunities of crowdfunding development in Africa. This analysis opens up research avenues, particularly on the operational conditions of platforms, which are the subject of our second article.The second article answers the question, "What are the conditions for the successful launch of a crowdfunding platform?". Adopting a qualitative approach based on grounded theory and content analysis, it develops a framework for analyzing the conditions for the successful launch of a crowdfunding platform in two stages: (1) a consultation of 13 crowdfunding experts through semi-structured interviews, and (2) a survey of 115 platforms at an international level. The analysis framework is built around four categories of success conditions: infrastructure, supply and demand for financing, and the implementation modalities of the platform itself. The testing of this analysis framework in the DRC is the subject of our third article.The third article answers the question, "What are the conditions for the feasibility and/or launch of a crowdfunding platform in the DRC?". Adopting a qualitative analysis approach based on 47 semi-structured interviews with key actors in the Congolese crowdfunding ecosystem, it systematically tests all the success conditions for a crowdfunding platform. The study results indicated that, in terms of the feasibility of a crowdfunding platform, the conditions of supply and demand for financing are satisfactory and validate the interest in such an initiative. However, the infrastructure and implementation conditions are less satisfactory, particularly regarding the regulatory framework, the functioning of financial services, and the business climate.These results provide an answer to our research question. In terms of supply and demand for financing, it is possible to launch a crowdfunding platform in the DRC. On the other hand, the infrastructure and implementation conditions are less satisfactory. Adaptations are necessary to launch the first crowdfunding platform in the country. This allows us to conclude by proposing a business model for a crowdlending platform in the DRC, along with the steps for its launch. |
| Keywords: | Crowdfunding; Plateformes; Conditions de succès; PME; RDC |
| Date: | 2024–08–20 |
| URL: | https://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/376678 |
| By: | Gong, Yaping; Khan, Muhammad Aamir; TAM, Kar Yan |
| Abstract: | Fintech, which refers to various technologies (e.g., apps and software) that improve the delivery and/or use of financial activities, is increasingly applied in the financial services industry. However, little is known about the competencies of employees working with fintech (hereafter, ‘fintech employees’). We developed a competency model for fintech employees and then generated and validated instruments for assessing their competencies. In Study 1, we developed a competency model with 13 competencies for fintech employees through interviews and a survey. In Study 2, we followed the standard scale development process (i.e., item generation, content validity assessment, exploratory factor analysis, confirmatory factor analysis, and predictive validity assessment) to develop and validate items for assessing seven selected competencies. In Study 3, we checked the predictive validity of these competencies by testing our hypotheses. In general, these competencies predicted different aspects of fintech employee performance outcomes. Overall, we demonstrated the reliability, validity, and incremental predictive validity of the seven competencies. |
| Date: | 2024–07–30 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:g9e7j |
| By: | Ozili, Peterson K |
| Abstract: | I make an attempt to build a model that is relevant for a technologically sophisticated world and show that the impact of technology on users depends on how technology is used and users’ expectations about the impact of technology. It is important for anyone interested in the impact of technology to have an understanding of the need to transition from technology acceptance model to the technology impact model. |
| Keywords: | impact, technology acceptance model, technology impact model, society |
| JEL: | O31 O33 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121522 |
| By: | Thiago Christiano Silva; Carlos Eduardo de Almeida |
| Abstract: | The COVID-19 pandemic has profoundly disrupted global supply chains, necessitating a reconfiguration of traditional networks. This study investigates the impact of the pandemic on Brazil's supply chain by using a massive firm-to-firm payment dataset composed of identified fast payments, invoices, and wire transfers. Our analysis gauges the heterogeneous impacts across industries and reveals a marked shift towards a more diversified supply chain network following the COVID-19 outbreak. As firms redirected their connections away from heavily impacted urban centers toward inland cities, a more intricate and geographically dispersed network emerged, characterized by less negative assortativity, increased density, and reduced inequality among municipalities. The diversification allowed firms to mitigate the pandemic's effects, underscoring the adaptability and potential soundness of a more decentralized supply chain structure. The findings provide insights for public policymaking and can guide targeted industrial policy design and financial risk mitigation strategies in the face of future disruptions. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:bcb:wpaper:595 |
| By: | Angst, Mario |
| Abstract: | This essay provides an answer to the question ``What is digitalization policy?'', through the lens of policy integration. To do so, I introduce a core distinction between naive and encompassing understandings of digitalization policy. Then, I posit that digitalization policy does not have a singular policy domain but rather distributed impacts across different policy domains. Digitalization policy is therefore always policy integration. Combining this assertion with an encompassing understanding of digitalization policy, I arrive at a modern definition of digitalization policy as any policy that targets the direct regulation of digital communication and digital infrastructure, in conjunction with the impact of such regulation on any affected policy domain(s). From this perspective, I argue that drivers of digitalization policy can be found in established groups of drivers of policy integration, based on institutions, interests or ideas. The essay suggests a blueprint for constructively approaching research on policy related to digitalization. It concludes with an illustrative application of the blueprint to an empirical example of a digitalization policymaking process in Switzerland, a policy sprint on the contribution of artificial intelligence to sustainability. |
| Date: | 2024–08–09 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:xykej |
| By: | Filippo Bontadini; Francesco Filippucci; Cecilia Jona-Lasinio; Giuseppe Nicoletti; Alessandro Saia |
| Abstract: | The paper presents novel indicators to measure financial sector digitalisation that cover 21 OECD countries over the 1995-2018 period, showing a significant increase in digital penetration though at different speeds and intensities across countries. The indicators are used to study the impact of financial sector digitalisation on economic activity, highlighting significant positive effects on the productivity of downstream industries. A 10% increase in financial sector digitalisation is associated with a 0.1 percentage point increase in productivity growth for the average industry, with a stronger impact in intangible-intensive industries. Digitalisation in finance is also associated with an easing of credit constraints, particularly benefiting intangible-intensive industries and SMEs, via an improvement in credit allocation and market conditions. Results suggest that policy actions aimed at supporting digital infrastructure, promoting competition in communications, fostering finance innovation, and encouraging high-level skill formation (especially in STEM fields) could sustain and enhance productivity growth through financial sector digitalisation. |
| Keywords: | Credit Allocation, Financial Sector Digitalisation, Intangibles, Productivity |
| JEL: | G00 O33 G38 |
| Date: | 2024–08–09 |
| URL: | https://d.repec.org/n?u=RePEc:oec:ecoaaa:1818-en |
| By: | Verbouw, Jeroen (Tilburg University, School of Economics and Management) |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:tiu:tiutis:e9d46d8a-a254-4502-941c-ae47a2bcecec |
| By: | BANA Philbert |
| Abstract: | The rapid growth of technology and digitalization has revolutionized the way universities operate and conduct their academic activities. However, this progress has also exposed the Rwandan university sector to an ever-increasing range of cyber threats and vulnerabilities. The main objective of this research is to design and implement a robust model based on Virtual Private Network (VPN) technology to enhance cyber security in the Rwandan universities. The problem statement revolves around not only escalating cyber security challenges and loopholes at the Universities, but also issue of using a single security measure of currently using only firewall as a security measures which has some drawbacks, and all these may lead to data breaches, unauthorized access, and potential loss of sensitive information. To achieve the research objectives, a mixed-methods approach has been adopted, qualitative data have been gathered through interviews and focus groups with IT related personnel to gain insights into the existing security vulnerabilities and concerns. Additionally, quantitative data have been collected to assess the frequency and nature of cyber-attacks experienced by the Universities. The study used different tools including Eve-ng, AnyConnect, VMware workstation and Wireshark for network traffic analysis. In this project, a novel and practical model based on Virtual Private Network technology has been designed to reinforce the cyber security infrastructure of the University of Kigali. Secondly, the research findings shed light on the current cyber security landscape in the Rwandan university sector and provide valuable recommendations to other universities in the country to bolster their own security measures. Key words: Virtual Private Network, cybersecurity, Network Access Control, Intrusion Detection System |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:vor:issues:2024-50-03 |
| By: | Ravi Kashyap |
| Abstract: | We have designed an innovative portfolio rebalancing mechanism termed the Cascading Waterfall Round Robin Mechanism. This algorithmic approach recommends an ideal size and number of trades for each asset during the periodic rebalancing process, factoring in the gas fee and slippage. The essence of the model we have created gives indications regarding whether trades should be made on individual assets depending on the uncertainty in the micro - asset level characteristics - and macro - aggregate market factors - environments. In the hyper-volatile crypto market, our approach to daily rebalancing will benefit from volatility. Price movements will cause our algorithm to buy assets that drop in prices and sell as they soar. In fact, the buying and selling happen only when certain boundaries are crossed in order to weed out any market noise and ensure sound trade execution. We have provided several numerical examples to illustrate the steps - including the calculation of several intermediate variables - of our rebalancing mechanism. The Algorithm we have developed can be easily applied outside blockchain to investment funds across all asset classes at any trading frequency and rebalancing duration. Shakespeare As A Crypto Trader: To Trade Or Not To Trade, that is the Question, Whether an Optimizer can Yield the Answer, Against the Spikes and Crashes of Markets Gone Wild, To Quench One's Thirst before Liquidity Runs Dry, Or Wait till the Tide of Momentum turns Mild. |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2407.12150 |
| By: | Villarino, Resti Tito (Cebu Technological University); Villarino, Maureen Lorence |
| Abstract: | Background: In social sciences, an appreciable degree of instrument validation is intended to maintain scientific rigor and research quality. Objectives: To develop and evaluate an AI chatbot and website for instrument validation, assess their impact on instrument validity improvement, and analyze user perceptions. Methods: Adopting a quantitative design, the study was anchored on the developed RIVF of Villarino (2024). Moreover, it was evaluated through users' perceptions (n=100) by administering an online survey, whereby the employment of pairing t-tests used contrasting instrument validity-pre-vs post-RIVF scores, and one-way ANOVA was used to determine if a relationship existed between users' perceptions and total improvement in validity. A G*Power analysis showed that there was enough statistical power for the analyses: for paired t-tests, it was 99.73% (n = 100, dz = 0.5, α = 0.05), and for one-way ANOVA, 80.95% (n = 100, f = 0.25, α=0.05, four groups). All data were analyzed using IBM SPSS version 26. Results: Post-RIVF use, all the validity domains showed significant improvements (p-value greater than 0.001), but the maximum significant gain was seen in construct validity [Mean difference=1.20±0.60, t(49)=14.14]. Subjects perceived the AI chatbot as more useful [4.30±0.70 vs. 3.80±0.80, p-value greater than 0.001]. Conclusion: This AI-powered ecosystem indicates a potential for increasing the validity of research instruments in RIVF, while an AI chatbot is efficient in incrementing the construct validity. These results would infer that the use of AI technologies along with traditional validation methods will improve the quality of research instruments in the social sciences. Keywords: artificial intelligence (AI), instrument validation, research methodology, social sciences |
| Date: | 2024–07–29 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:rjyzg |
| By: | Amanda Dahlstrand; Nestor Le Nestour; Guy Michaels |
| Abstract: | Online delivery of one-to-one services offers potential cost savings and increased convenience, yet relatively little is known about its impacts on providers and consumers. This paper studies the online delivery of healthcare, focusing on primary care doctor consultations. We use novel data from Sweden and an effectively random assignment of patients to nurses, who differ in their propensity to direct patients to online versus in-person consultations. Our findings reveal that online consultations are delivered sooner, are shorter, and yield similar in-consultation outcomes, including rates of diagnosis, prescriptions, and specialist referrals, as well as patient satisfaction. However, in the short term, online consultations lead to more emergency department (ED) visits and additional in-person primary care visits, though no significant medium-term health effects are observed. We discuss the extent to which follow-ups reduce online’s cost savings, as well as online’s advantages for different patients and how to improve hybrid organizations’ cost effectiveness. |
| Keywords: | telehealth, remote work, online services |
| JEL: | J44 I11 O33 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11250 |
| By: | Daria Gritsenko; Jon Aaen; Bent Flyvbjerg |
| Abstract: | Digitalization is a core component of the green transition. Today's focus is on quantifying and pre-dicting the climate effects of digitalization through various life-cycle assessments and baseline sce-nario methodologies. Here we argue that this is a mistake. Most attempts at prediction are based on three implicit assumptions: (a) the digital carbon footprint can be quantified, (b) business-as-usual with episodic change leading to a new era of stability, and (c) investments in digitalization will be delivered within the cost, timeframe, and benefits described in their business cases. We problema-tize each assumption within the context of digitalization and argue that the digital carbon footprint is inherently unpredictable. We build on uncertainty literature to show that even if you cannot predict, you can still mitigate. On that basis, we propose to rethink practice on the digital carbon footprint from prediction to mitigation. |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2407.15016 |