Financial Economics Letters

oa Open Access

E-ISSN: 2972-3426

Financial Economics Letters (FEL) is a scholarly peer-reviewed journal invited submissions in all areas of financial economics, broadly defined. FEL’s emphasis is on theoretical developments and their implementation, empirical, applied, and policy-oriented research in financial economics.

Papers are invited in the following areas: Asset Management; Asset Pricing; Bankruptcy and Liquidation; Behavioural Finance; Bitcoin Investment; Banking; Corporate Finance; Corporate Governance; Commodities; Contagion, Crises and Interdependence; Derivatives; Energy Finance; FinTech; Fund Management; Financial Econometrics; Financial markets and marketplaces; Financial Mathematics and Econophysics; Forecasting; International Finance; Market Efficiency; Mergers, Acquisitions and the Market for Corporate Control; Micro Finance Institutions Microstructure; Networks; Performance Analysis; Political Risk; Portfolio Optimization; Regulation of Financial Markets and Institutions; Risk Management and Analysis; Systemic Risk; Term Structure Models; Venture Capital.

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Open Access Journal Article
How Shopping Platforms Play a Role in the Credit Card Industry
by Sipeng Zeng
FEL  2024, 27; 3(2), 27; 10.58567/fel03020002 - 15 June 2024
We develop a four-party model involving banks, merchants, consumers, and platform firms to explain why large shopping malls can offer interest-free installment services to consumers. Using a collaboration between an online shopping platform firm and multiple banks to issue co-branded credit cards as a natural experiment, we find that consumers’ spending on the platform fu [...] Read more

Open Access Journal Article
COVID-19 and SMEs deposits with commercial banks: evidence from African economies
by Abdulazeez Y.H. Saif-Alyousfi
FEL  2024, 19; 3(1), 19; 10.58567/fel03010006 - 15 March 2024
This paper examines the impact of COVID-19 on Small and medium-sized enterprises (SMEs) deposits across 13 African nations from 2016 to 2022, using a seven-year dataset and Ordinary Least Squares estimator. Notably, it uncovers a significant positive link between the pandemic and SMEs deposits, indicating heightened reserves amidst economic uncertainty, potentially driven by ri [...] Read more

Open Access Journal Article
Investigating the Joint Impact of Exchange Rate and Foreign Direct Investment Inflows on Domestic Interest Rate in Nigeria
by Innocent Chile Nzeh , Uche Collins Nwogwugwu , Maria Chinecherem Uzonwanne , Christopher Urua Kalu  and  Emmanuel Chinonye Akalazu
FEL  2024, 26; 3(2), 26; 10.58567/fel03020001 - 05 February 2024
The sensitive nature of interest rate has spurred empirical interests on the factors that determine it. This paper examined the joint impact of exchange rate and foreign direct investment inflows on interest rate in Nigeria over the period from 1981-2022. The study made use of the auto regressive distributed lag (ARDL) bounds test and results of findings reveal that in both the [...] Read more
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Open Access Journal Article
Nexus Between Asset Class Volatility and the Output Gap in Nigeria: A Bayesian Var Approach
by richard umeokwobi , Abayomi Awujola , Emeka Nkoro  and  Marvelous Aigbedion
FEL  2024, 25; 3(1), 25; 10.58567/fel03010004 - 19 January 2024
Excessive volatility in financial markets can disrupt economic activity, affect investor and consumer confidence, and potentially lead to financial crises in an economy. Due to this backdrop, this study examined the link between asset class volatility and the output gap in Nigeria. The asset classes were categorized into stock, crude, gold, and bitcoin. The study adopted the GA [...] Read more

Open Access Journal Article
African exchange rates amidst the COVID-19 pandemic
by Turki Rashed Alshammari
FEL  2024, 24; 3(1), 24; 10.58567/fel03010005 - 17 January 2024
The study investigates the impact of COVID-19 on African exchange rates, employing a panel dataset over the period 2016-2022 from 13 African economies and employing pooled OLS estimator. The findings reveal a noteworthy positive correlation between COVID-19 levels and exchange rates within the region. However, this association necessitates deeper exploration due to its multifac [...] Read more

Open Access Journal Article
The Impact of Economic Policy Uncertainty on Systemic Risk in the Fintech Industry: Evidence from Crisis Events and the COVID-19 Pandemic
by Aktham Maghyereh  and  Jinxin Cui
FEL  2024, 23; 3(1), 23; 10.58567/fel03010003 - 16 January 2024
This paper investigates the effect of economic policy uncertainty (EPU) on the systemic risk of the fintech industry. To achieve this goal, we first estimate the evolution of system-wide systemic risk using the CatFin method. We further examine whether EPU significantly affects systemic risk. Our findings demonstrate that the systemic risk of the fintech industry is time-varian [...] Read more

Open Access Letter
Asymmetric Efficiency: Contrasting Sustainable Energy Indices with Dirty Cryptocurrencies
by Rosa Galvão  and  Rui Dias
FEL  2024, 22; 3(1), 22; 10.58567/fel03010002 - 16 January 2024
This paper examines the efficiency, in its weak form, of the clean energy stock indices, Clean Coal Technologies, Clean Energy Fuels, and Wilderhill, as well as the cryptocurrencies classified as "dirty", due to their excessive energy consumption, such as Bitcoin (BTC), Ethereum (ETH), Ethereum Classic (ETH Classic), and Litecoin (LTC), from January 2020 to May 30, 2023. In ord [...] Read more

Open Access Journal Article
How do financial regulations and economic freedoms affect bank profitability? Empirical Evidence from the OIC Region
by Ousman Mohammed Yimam
FEL  2024, 21; 3(1), 21; 10.58567/fel03010001 - 15 January 2024
Banks operating within a free economic environment and with constructive regulatory frameworks can function with enhanced efficiency, augmenting their profitability. This study aimed to examine the influence of economic freedom and financial restrictions on banks' profitability within the Organization of Islamic Cooperation member nations. The study used a sample of 1453 banks, [...] Read more

Open Access Journal Article
A study on the perception towards the impact of inflation of people of Gujarat state
by Kalpesh Gandhi
FEL  2024, 20; 2(3), 20; 10.58567/fel02030005 - 15 January 2024
Economy has various stages which have been described as economic cycle and due to that the circulatory movement observed, some have faster cycle some have longer cycle which depends on numbers of factors and from that inflation is an important segment. Various terms have been described for inflation, in simple meaning when price of different commodities have been raised compare [...] Read more

Open Access Journal Article
Digital Currency and Financial Markets in Nigeria: Impact and Policy Implications
by Chioma Nwosu Peace , Bosha Ernest Oryiman  and  Abubakar Ibrahim Sani
FEL  2023, 18; 2(3), 18; 10.58567/fel02030003 - 01 December 2023
The rise of privately issued digital currencies, which primarily serve as alternative investment assets poses a challenge to the traditional financial instruments traded in the financial market. This study examines the dynamic relationship between the major privately issued digital currency (Bitcoin) and two financial market securities in Nigeria. The paper employed Vector Auto [...] Read more