Browsing by Author "Balli HO"

Now showing 1 - 6 of 6
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    Contemporaneous and lagged 𝑅2 decomposed connectedness approach: New evidence from the energy futures market
    (Elsevier Inc, 2023-11) Balli F; Balli HO; Dang THN; Gabauer D
    In this study, we investigate the return propagation mechanism across six energy futures, namely, Crude Oil, Heating Oil, Gasoline, Natural Gas, Kerosene, and Propane ranging from November 21st, 2014 until April 6th, 2023 by using a novel R2 decomposed connectedness approach. This framework allows to efficiently decompose connectedness measures into contemporaneous and lagged components. We find that the dynamic total connectedness is heterogeneous over time and economic-event dependent. Furthermore, the empirical results highlight that the contemporaneous effects are more pronounced on average while a significant amount of lagged spillovers occur in the case of Kerosene and Propane. We find that Heating Oil is the main net transmitter of shocks followed by Gasoline and Crude Oil while the main net receiver of shocks is Kerosene followed by Propane and Natural Gas. Finally, robust R2 connectedness measures are provided.
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    Cross-listing flows under uncertainty: an international perspective
    (Taylor and Francis Group, 2024) Agyemang A; Balli F; Gregory-Allen R; Balli HO
    The impact of policy uncertainty on corporate decisions and strategies continues to receive significant interest in recent discussions. As a contribution, this study examines how economic policy uncertainty (EPU) in the domestic and global markets impacts corporate cross-listing decisions. To this end, we employ firm and country-level data from 1990 to 2016 from 13 countries. We implement a Granger Causality, Quantile on Quantile Regression (QQR), and Wavelet Coherence approaches and show that monthly local and global EPU influence the cross-listing decisions of firms, with stronger influence for firms from smaller domestic markets. We suggest that firms from smaller domestic markets seek more cross-listing in the face of high local EPU and reduce or avoid cross-listing during high global EPU periods. Our findings suggest that policy transparency could have important implications for current and future corporate decisions.
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    Demographic-governance factors shaping cryptocurrency holding behavior
    (Elsevier B.V., 2025-11) Dang THN; Balli F; Balli HO; Kilic I
    Employing cross-sectional data of 142 countries worldwide, this paper examines the macroeconomic factors in shaping cryptocurrency adoption. We find that the aggregate impact of inflation volatility on crypto adoption is dependent on the level of corruption control in higher-income countries. The control of corruption appears to discourage cryptocurrency adoption, emphasizing the role of institutional trust in financial choices. We also find that higher emigrant ratios in non-high-income and lower-income countries are associated with increased cryptocurrency usage, which suggests that migrants tend to use cryptocurrencies for faster, cheaper remittances compared to traditional services. Last, we find that internet penetration plays a key role in crypto adoption, particularly in higher-income countries with advanced digital infrastructure.
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    Firm productivity in the Energy-electricity sector over the last two decades with crisis: The role of cross-listing
    (Elsevier B V, 2024-02) Dang TH-N; Balli F; Balli HO; Nguyen H
    Novel to the literature, this study examines how cross-listing impacts firms’ productivity in Energy sector. Annual data of firm cross-listing over the last two decades with crisis (2002-2022) is employed for our analyses. We find evidence of significant drop in productivity after Energy firms (including electricity firms) cross-list in the US market. Meanwhile, we do not find strong evidence of significant decreases in firm productivity from other sectors in our sample. We note one possible explanation for this finding is that after cross-listing, Energy firms appear to utilize their increased capital to heavily invest in infrastructure, equipment, and plants for expansion, which might eventually damage their productivity. To seek for more thorough explanations for such decreases in Energy firms' productivity after cross-listing, we identify the determinants of firm productivity in Energy sector. Our results provide strong evidence that the increases in capital expenditures after Energy firms cross-list appear to be associated with the decreases in firm productivity. Notably, we note that negative impacts of capital expenditures (after cross-listing) and state ownership on firm productivity become much stronger and more statistically significant in developed countries than in emerging countries. Last, corporate governance and firm liquidity are found to be two determinants that help improve firm productivity in both electricity firms and other energy firms.
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    Payouts smoothing and income growth
    (Taylor and Francis Group, 2025-09-01) Balli F; Nguyen H; Chowdhury MIH; Balli HO
    We quantify the extent and drivers of payout smoothing by employing 34,966 US firms’ data from 1975 to 2022. We report that payout growth is almost insensitive to year-by-year net income growth, in line with preceding literature suggesting payout smoothing. Novel to the literature, we incorporate the dynamics of payout smoothing, permanent, and aggregate net income growth into the depiction. Though payout growth is mostly immune to annual income growth shocks, it is significantly affected by net income growth of 5- or 10-year periods. Firms also consider the aggregate-sectoral and/or country-level-income growth in payout decisions. Since both permanent and aggregate income growths take over the role of year-by-year income growth, we further investigate if firms’ financial positions impact the magnitude of the smoothing. Annual payout growth depends more on permanent income growth for firms with higher profits and lower leverage positions. Notably, more financially vulnerable firms with higher leverage adjust payouts more in line with aggregate economic conditions.
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    Sectoral uncertainty spillovers in emerging markets: A quantile time–frequency connectedness approach
    (Elsevier Inc, 2024-06) Dang THN; Balli F; Balli HO; Gabauer D; Nguyen TTH
    This study investigates the sectoral expected uncertainty connectedness in emerging markets across different frequencies and quantiles using the novel quantile time–frequency connectedness approach of Chatziantoniou et al. (2022a). The employed dataset spans from January 1st, 2003 to October 4th, 2022, encompassing 10 key sectors. The findings reveal a robust and notable interconnection among these sectors, with a substantial total connectedness index of 91.01%. We also note that the largest proportion of the sectoral total connectedness is associated with long-term spillovers. Consumer Cyclicals emerges as the primary source of net risk transmission. Conversely, the Communications & Networking and Healthcare appear to be the greatest net receivers of shocks at the median level. Furthermore, we find that the degree of interconnectedness substantially varies over time, frequency, and quantile, and by economic events. In addition, we find suggestive evidence of asymmetric sectoral uncertainty connectedness effects as the uncertainty spillovers are higher during turbulent market conditions than normal market conditions. A positive relationship between uncertainty measures and sectoral connectedness is also observed during periods of smooth and normal market conditions. Besides, we also conduct different portfolio analyses illustrating the importance of risk diversification to reduce investment uncertainty. This has important implications for international investors and policymakers in forming optimal investment portfolios reducing adverse risk spillovers.