Do global financial crises validate assertions of fractal market hypothesis?

The frequent occurrence of crises in recent decades has triggered a debate between the proponents of Efficient market hypothesis and Fractal market hypothesis. While, the proponents of Efficient market hypothesis view crises as non-existent and highly improbable, the advocates of Fractal market hypothesis view crises as the dominance of certain investment horizons. We test whether the assertion of Fractal Market hypothesis regarding the dominance of certain frequencies during financial crises hold for the global stock markets. Following Kristoufek (Sci Rep 3:2857, 2013) the wavelet power spectra based on continuous wavelet framework are used to test the said hypothesis. It is shown that stock markets around the globe indicate the dominance of higher frequencies during the crises periods, hence, validate the assertions of Fractal market hypothesis. The results drawn are robust to the use of different countries as well as different crises.     

How well do EO measures and entrepreneurial behavior match?

The Entrepreneurial Orientation (EO) research stream is quite popular in investigating how companies act entrepreneurially and how EO relates to issues such as financial performance, innovation, and founder satisfaction. Part of EO’s popularity may be that it is measured using simple, widely-accepted items. Yet the idea of how to best measure EO has become a recent topic of debate. Part of that debate is that the items measure dispositions as much as behaviors and are self-reported, which means they are somewhat subjective. This paper investigates the relationship between subjectively-measured EO and actual entrepreneurial behavior as measured through objective data. To do so, the paper examines the relationship between EO dimensions and realized risk-taking behavior. Using a sample of 156 community banks headquartered in the southwestern United States, the paper uses banks’ risk-weighted asset ratio, which captures the riskiness of the bank’s portfolio, as a measure of sustained entrepreneurial behavior. The analysis finds that subjectively-measured EO risk-taking is strongly related to objectively-measured realized bank risk-taking. There was not a significant direct relationship with the other EO dimensions, though there was some evidence of a moderated relationship. The paper lends some credibility to current EO measures and suggests how additional research is needed to improve upon EO’s measurement.     

A partial least squares approach to digital finance adoption

In present times, the adoption and adaption of technology have become empirical. This paper helps in determining the factors of perceived risk and perceived benefits in order to understand the willingness or hesitance of people to adopt digital finance. An attempt is made to study the influence of perceived risk and benefit as the determinants of digital finance adoption. The data were collected from individuals of Northern India through a structured questionnaire. The study collected data from 411 respondents through a structured questionnaire. Partial Least Square Structural Equation Modelling has been adopted to analyze the data through SmartPLSv2. For better understanding, perceived risk constituted three constructs-Security risk, financial risk and performance risk, and perceived benefit included seamless transaction, economic benefit and convenience. The research concluded that both perceived risk and benefits influence the adoption of digital finance. Perceived benefit has more impact on digital finance adoption than perceived risk. The findings of the paper are beneficial for digital finance service providers and marketers to enhance the awareness and advantages of digital finance according to the needs of consumers. The present study adds value to the existing literature on the relationship between perceived risk, perceived benefit and adoption of digital finance.