Dear Readers,
I am pleased to present the second issue of the eighth volume of the Journal of Capital Markets Studies (JCMS), showcasing six insightful articles that delve into critical aspects of finance, governance and economic performance in today's dynamic global landscape. These papers highlight emerging trends, empirical studies and innovative methodologies, offering valuable insights for researchers, practitioners and policymakers.
The first article, “Market resilience in turbulent times: a proactive approach to predicting stock market responses during geopolitical tensions,” written by Srivatsa Maddodi and Srinivasa Rao Kunte, presents an innovative predictive model for understanding stock market behavior amid geopolitical uncertainties. By integrating sentiment analysis from social media with traditional market indicators, the authors achieve an impressive prediction accuracy of 98.47%. The authors state that this model's originality lies in its focus on short-term impact, novel data fusion and high accuracy. Moreover, this study offers a novel approach to navigating market volatility, making it a valuable tool for investors seeking to make informed decisions in uncertain times.
The next paper, “Term structure of interest rate and macro economy: an empirical study on selected emerging countries sovereign bond,” written by Doddy Ariefianto, Citra Amanda and Zaafri Ananto Husodo examines the behavior of the term structure of interest rates in emerging markets. By analyzing the slope and curvature of the yield curve, the authors highlight the implications of interest rate changes for macroeconomic stability. The study employs a novel econometric approach, providing fresh insights into how short-term yield levels and macroeconomic variables interplay, ultimately influencing economic growth in these nations.
The third article, “Audit report lag and the cost of equity capital,” co-authored by Md. Borhan Uddin Bhuiyan, Yimei Man and David H. Lont, explores the relationship between audit report lag and the cost of equity capital. The authors demonstrate that an extended audit report lag can significantly increase the cost of equity by reducing the value of information available to investors. Utilizing a sample of USA firms from 2003 to 2018, the study finds that a one-standard deviation increase in audit report lag raises the cost of equity capital by 3.82 basis points. This research underscores the importance of timely financial reporting in maintaining investor confidence.
In the fourth article, “Interlinkages between public expenditures, non-tax government revenues and corruption in the transition economies,” co-authored by Alper Ozun, Hasan Murat Ertuğrul and Ergul Haliscelik, the authors investigate the relationship between public spending and corruption in eleven transition economies. The study uncovers a strong linkage between public expenditures and corruption, while the connection with non-tax revenue remains weak. Additionally, this research highlights the need for constitutional economic policies to control public spending and mitigate corruption, offering crucial policy implications for these economies.
The next article, “Corporate governance and capital market development in the GCC: a comparative literature review,” written by Mohamed A. Ateia Elhabib, offers a comprehensive analysis of corporate governance practices across Gulf Cooperation Council (GCC) countries. The findings reveal significant similarities and differences in governance frameworks, particularly regarding board structures and executive remuneration. By aligning corporate governance with sustainable practices, this review provides valuable perspectives on enhancing market performance and investor confidence in the region.
Finally, “Performance analysis of the Next Eleven countries regarding climate change for the selected years,” written by Nuray Tezcan, utilizes Grey Relational Analysis to evaluate the performance of N-11 countries in terms of energy use and climate change. The results indicate that while some countries like Bangladesh and the Philippines have shown strong performance, others like Mexico and Iran lag. Furthermore, this study is a significant contribution to understanding the challenges these emerging markets face in achieving the sustainable development goals (SDGs) related to energy and climate.
We hope you enjoy this issue of JCMS. Should you have any specific suggestions for future releases, please feel free to contact us. We value your input. JCMS’s website is available at: https://www.emeraldgrouppublishing.com/journal/jcms
Best Regards,
Professor Guler Aras
Editor-in-Chief, Journal of Capital Markets Studies
