Vol. 27 No. 1 (2024)

Articles

• Open Access Article Financial Management

  8 Pages Download PDF: The Role of Strategic Financial Management in Enhancing Corporate Value and Competitiveness in the Digital Economy

  The Role of Strategic Financial Management in Enhancing Corporate Value and Competitiveness in the Digital Economy

  Israr Ahmad

  https://doi.org/10.36923/economa.v27i1.116

  This study examines how strategic financial management boosts SMEs' corporate value and competitiveness in the fast-changing digital economy. As digital technologies change market landscapes, SMEs face unique challenges and opportunities in aligning their financial strategies with digital transformation. This mixed-methods study combines quantitative regression analysis with qualitative interviews with senior management from technology, finance, retail, and manufacturing. Quantitative findings from 129 SMEs show a positive correlation between strategic alignment, innovation culture, and corporate value and financial performance, highlighting the complex but crucial role of digital technology investments and risk management. Qualitative insights emphasise the need to align these investments with strategic goals and foster innovation. This study contributes twice. First, it empirically shows how strategic financial management practises help navigate the digital economy, enriching strategic management and finance literature. Second, it advises SMEs to take a holistic approach to strategic financial management that prioritises digital technology investments and ensures they are strategically aligned, culturally ingrained, and risk-averse. This research shows how financial strategy and digital innovation interact to drive SME competitiveness and value creation in the digital age.

  pp. 1-08 Abstract views:3796 Downloads:648

• Open Access Article Financial Management

  9 Pages Download PDF: Adaptive Market Hypothesis And Overconfidence Bias

  Adaptive Market Hypothesis And Overconfidence Bias

  Manel Mahjoubi, Jamel Eddine Henchiri

  https://doi.org/10.36923/economa.v27i1.237

  This paper examines the effect of excessive investor confidence on market efficiency. We study this impact for 21 developed markets and 25 emerging markets for a period from January 2006 until June 2020. First, we estimate weak market efficiency using the auto-correlation test (Ljung-Box, 1978). Thus, based on the adaptive approach, we assume that the overconfidence of investors has a negative impact on market efficiency. Concerning the over-confidence variable; we use the transaction volume decomposition method of Chuang and Lee (2006). Finally, we used the logit panel model to study the impact the impact of investor overconfidence on market efficiency. The result shows that during our study period, the trust bias had no impact either on the efficiency of developed markets or on the efficiency of emerging markets. We attribute this result to successive crises during our study period, including the subprime crisis, the eurozone crisis, the stock market crash in China, and the COVID crisis, which likely caused investors to become pessimistic and lose confidence in the stock market.

  pp. 8-16 Abstract views:609 Downloads:842

• Open Access Article Economics

  10 Pages Download PDF: Impact of the COVID-19 virus on MENA stock market

  Impact of the COVID-19 virus on MENA stock market

  Sirine Ben yaala, Jamel Eddine Henchiri

  https://doi.org/10.36923/economa.v27i1.238

  This study examines the influence of contagious infectious diseases, specifically COVID-19, on stock market behavior. With the global emergence of COVID-19, we have witnessed not only the health implications of a pandemic but also its profound social and economic repercussions, exacerbated by the implementation of lockdown measures. Utilizing panel data analysis, we assess the impact of disseminated information regarding the virus on the stock markets of the MENA region. Our findings reveal that the daily increases in both total confirmed cases and total deaths attributable to COVID-19 have a consistently significant and negative effect on stock returns across all observed markets. In conclusion, our analysis confirms that the spread of COVID-19 has had a detrimental impact on stock market returns in the MENA region. This underscores the vulnerability of financial markets to global health crises and highlights the necessity for market participants to consider health-related information as a significant factor in risk assessment and investment decision-making processes.

  pp. 17-26 Abstract views:463 Downloads:220

• Open Access Article Economics Finance

  11 Pages Download PDF: Impact of Financial Behavior And Experience on Financial Literacy: A Study of Universities In Pakistan

  Impact of Financial Behavior And Experience on Financial Literacy: A Study of Universities In Pakistan

  Ali Raza, Turgut Tursoy, Erum Shaikh, Mumtaz Ali

  https://doi.org/10.36923/economa.v27i1.240

  The aim of this research is to investigate the impact of financial behavior and experience on the financial literacy of university students. The study employs a primary approach to data collection utilizing questionnaires. The targeted population consists of students from various universities in Pakistan, with a sample size of 250 students chosen through random sampling. Regression analysis reveals a positive and statistically significant relationship between financial behavior, financial experience, and financial literacy (p > 0.05). The conclusion drawn from the analysis suggests that enhancing financial behavior and providing practical financial experience can positively influence the financial literacy of university students. These findings have implications for educational institutions and policymakers, highlighting the importance of integrating financial education into university curricula to equip students with essential financial skills for navigating the complexities of modern financial systems.

  pp. 27-37 Abstract views:1141 Downloads:1743

• Open Access Article Economics

  18 Pages Download PDF: Does Peer Matters? How Peer Influence Firm Payout Policies: Evidence from Pakistan

  Does Peer Matters? How Peer Influence Firm Payout Policies: Evidence from Pakistan

  Sana Saleem, Arwah Asif, Mohammad Usman, Mohammad Haseeb Khokar

  https://doi.org/10.36923/economa.v27i1.242

  Payout decisions are receiving more interest from an investor’s point of view. The purpose of this study is to investigate the effect of peer payout policies on a firm payout policy in Pakistan. This study employs an instrumental variable technique to overcome the endogeneity issue, which is based on peers' idiosyncratic equity shocks. The peers' payout policies have a causal link with a firm payout policy. The effect of peer pressure on firm payout is more evident in companies that compete in a more competitive market and have a good information environment. The firms that are similar in size or resource, especially young and small firms, are more responsive to their industry peers. This study provides channels for managers or policymakers to become more optimistic about formulating the payout policy to attract investors' attention and to compete more fiercely in the market.

  pp. 38-55 Abstract views:511 Downloads:295