Conference Presentations by Florin Aliu
This paper aims capturing the short-and long-run effects of the factors affecting interest rate r... more This paper aims capturing the short-and long-run effects of the factors affecting interest rate risk in Kosovo banking industry through conducting ARDLBT approach to co-integration for covering data 2004Q1–2014Q4 and monthly based data. However, in the short-run, the effects are contrary to the theoretical expectations. In long run beside bank specific factors were included also macro indicators, most results were as expected where net profit (NP) and overall expenses (EXP) positively affect IRS while GDP and inflation appeared to have negative affect. However, Interest income (INI) showed to be moving differently from expectations where INI effects interest rate spread negatively. Findings shed light on the ongoing concern that followed the whole transition process of the banking industry in Kosovo. Policy makers would benefit not only to improve the current business environment but also conduct further steps in reducing interest rate spread in Kosovo banking industry.
Papers by Florin Aliu
This paper examines the impact of using qualitative and quantitative beta in the overall value of... more This paper examines the impact of using qualitative and quantitative beta in the overall value of the company. The company analyzed within the case study is private (nonpublic) company. Valuation of the private companies is an important element on price signals that are delivered in the market. Determining intrinsic value of private (nonpublic) companies is essential evidence, not just for mergers and acquisition, but also for banks, suppliers, customers and employees on the current and future outlook of the company. There are a lot of unclear inputs standing on the general theoretical concepts and practical applications that lie within the calculation of non-public companies. The results of the study shed light on a small part of the overall complex issue of the valuation process, where the valuation of the company with qualitative beta shows entirely dissimilar outcomes from the valuation of the company with accounting beta.Internal Grant Agency of Tomas Bata University in Zlin [I...
12th Annual International Bata Conference, 2016
Kosovo does not have a bond market which would enable companies, people and other economic agents... more Kosovo does not have a bond market which would enable companies, people and other economic agents to have access to it, that would have been a substitute for the companies to get other sources of funds beside banking sector. The Kosovo economy has only one source of institutional money injected into the economy and that is the banking industry. Bringing back the money of Kosovo Pension and Saving Trust (KPST) to Kosovo would have been a huge injection for the economy to raise GDP and lower unemployment. Since the companies in Kosovo contain a lot of asymmetric information within their financial statements, clearing the way for KPST how to allocate their investments in Kosovo would be through alleviating asymmetric information. The paper stands on the general concepts of the asymmetric information and how to alleviate it within the financial market and particularly within the bond market. The other part of the paper concentrates on theoretical framework how to eliminate asymmetric information for the companies who want to get funding from KPST. Therefore, it is necessary to have healthy banks and better environment to have a sound bond market. On the other hand, bond market may increase the health of banks by enhancing market competition.
The Journal of Risk Finance
PurposeThe stability of exchange rates facilitates international trade, diminishes portfolio risk... more PurposeThe stability of exchange rates facilitates international trade, diminishes portfolio risk, and ensures that economic policies are effective. The war in Ukraine is showing that the European financial system is still fragile to external shocks. This paper examines the consequences of the Russian invasion of Ukraine on five Euro exchange rates. The final goal is to empirically test whether the ruble caused the euro to depreciate with the Russian invasion of Ukraine.Design/methodology/approachThe exchange rates analyzed are Euro/Russian Ruble, Euro/US Dollar, Euro/Japanese Yen, Euro/British Pound, and Euro/Chinese Yuan. The data collected are daily and cover the period from November 1, 2021, to May 1, 2022. In this context, the changes in the FX rates reflect two months of the ongoing war in Ukraine. The FX rates used in the study contain 137 observations indicating five months of daily series.FindingsThe results from impulse response function, variance decomposition, SVAR, and ...
ILIRIA International Review, 2014
Privatization is considered an initial step toward market economy, restructuring financial and ec... more Privatization is considered an initial step toward market economy, restructuring financial and economic sector that enables competition in the economy. Privatization is the most painful process in economy where beside legal establishment and political will, it includes also the aspect of fairness and honesty. Analysis of this process is based on the models and comparisons between Kosovo and countries of central and Eastern Europe, in order to give a clearer picture on the overall process of privatization in KosovoMethodology that is used to analyze this issue is based on empirical results and also qualitative interpretation of the models and also on studying particular asset privatization process. A widely discussed case of privatization in Kosovo is that of Post and Telecom of Kosovo (PTK). Since each company has its own value, I have focused my appraising analysis on the financial statements with a special observation on Cash Flow from Operation, as the most significant indicator ...
In the digital and artificial intelligence intensification era where up to 2/3 of Gross Domestic ... more In the digital and artificial intelligence intensification era where up to 2/3 of Gross Domestic Product (GDP) is generated from the service sector, nearly ¾ of household budget is spent by the Kosovo families in food and accommodation. This is a larger and greater share than in the neighboring countries to which Kosovo approximately has the same level of income per capita. At the same time, for some years spending for education until the recent available data remains below 1%, showing another difference with the neighboring countries in volume as well as in total share of household budget expenditures. Using the secondary data from the Kosovo Agency of Statistics (KAS) on household survey, this paper finds that the ongoing high share of income spending in food and accommodation at the expense of other sectors becomes a source of inefficiency. Moreover, this issue might plunge the households into unaffordable debts and problems with their future payments. The population on a large s...
Economic Research-Ekonomska Istraživanja
The coronavirus outbreak in 2020 shattered economies, public health and public well-being worldwi... more The coronavirus outbreak in 2020 shattered economies, public health and public well-being worldwide literally overnight. In response to the pandemic, most countries implemented a delicate balance of policy stringency and economic support to ensure public health, social security and a vibrant economy. With the pandemic slowly phasing out, our article explores the effectiveness of various governmental strategies for ensuring economic growth. The proposed econometric model is tested using panel quarterly data for 49 (37 OECD þ 12 non-OECD) countries for all four quarters of 2020 and the first quarter of 2021. Our findings show that policy stringency and economic support are both negatively associated with economic growth. We also find that the stringency was largely responsive, oriented to preventing the collapse of health systems after infections had already become widespread, not towards saving human lives by preventing soaring levels of infection. While our findings appear to lend support for the view that a trade-off between human lives and the economy was inevitable, we also challenge this view by evidence that some countries were able to secure a double dividend of maintaining public health and a vibrant economy by a prudent farsighted stringency policy of preventing the virus outbreak.
Corporate Governance: An International Review, 2007
This study analyses the relationship between ownership structure and board of director compositio... more This study analyses the relationship between ownership structure and board of director composition and their influences on the total factor productivity (TFP) of Taiwan's firms. The empirical results show that the curvilinear specification is better to capture the relationship between inside ownership and firm productivity. Meanwhile, the ownership structure in a firm indeed affects differences in TFP between conglomerate firms and nonconglomerate firms, high-tech firms and non-high-tech firms, and family-owned firms and non-family-owned firms. Additionally, a smaller board may be less encumbered by bureaucratic problems and more functional and CEO duality may be able to improve productivity. Furthermore, productivity deteriorates with increasing proportion of collateralised shares. More institutional holdings, however, are an effective way to alleviate the negative impact of collateralised shares on TFP.
Studies in Economics and Finance, 2020
Purpose This study aims to compare the diversification risk of the crypto portfolio with those of... more Purpose This study aims to compare the diversification risk of the crypto portfolio with those of equity portfolios. For this purpose, the hypothetical index was constructed with 20 cryptocurrencies that hold the highest market capitalization in the Coin Market Cap database, named as the Crypto-Index 20. Design/methodology/approach The portfolio diversification techniques were used to identify risk linked with the six largest European equity indexes and compared with the Crypto-Index 20. Indexes were considered as an independent portfolio while analysis was completed separately for each of them. Data concerning stock prices and their trade volume were collected from the Thomson Reuters Eikon database while crypto prices and their trade volume from the Coin Market Cap database. The diversification risk of the stock indexes was measured separately for each portfolio with the same risk techniques and the same methodological process. Findings Research results indicate that Crypto-Index ...
International Journal of Management and Economics
Diversification of financial securities is considered a substantial element of portfolio risk. In... more Diversification of financial securities is considered a substantial element of portfolio risk. In this context, the construction of an optimal portfolio is an ongoing concern for portfolio managers. This study measures the risk–reward tradeoffs linked to the stock indexes of Germany, Spain, Italy, France, and England. First, the stock indexes are analyzed as individual portfolios and later compared to the hypothetical common equity index. The results show diversification benefits gained from a hypothetical common European stock market. Individual stock prices and trade volumes are collected weekly from January 1, 2008 to December 31, 2018. The results indicate that, on average, the most well-diversified equity indexes are IBEX35, FTSE MIB, and FTSE100. In contrast, DAX, MDAX, and CAC40 on average tend to be less diversified. The diversification risk for DAX, MDAX, and CAC40 decreases from joining a common hypothetical stock market, while for FTSE100, FTSE MIB, and IBEX it increases.
Stock markets stand as an important element within the financial system. Financial crises of 2008... more Stock markets stand as an important element within the financial system. Financial crises of 2008 showed that stock market crash influence the real economy. On the other hand, economic and financial globalization has created interdependency within national economies. The current research tends to measure risk exposure of the Visegrad stock markets (Czech Republic, Hungary, Poland and Slovakia). One of the indicators of the risk exposer of a financial assets is value at risk. In this study, value at risk is estimated using GARCH model in a dataset of almost three thousand working days per each stock markets. White noise process and ARIMA (1, 1) were applied to get more robust results. The worse stock index among Visegrad countries was identified SAX (Bratislava index, Slovakia) and the most promising one was BUX (Budapest index, Hungary). Value at risk is a useful tool that investors can use to analyze the performance of a share or market index in terms of risk exposure. Furthermore,...
The study addresses the benefits of a unified stock market in terms of diversification risk for t... more The study addresses the benefits of a unified stock market in terms of diversification risk for the eight CEE stock markets. For this purpose, each stock market was treated as a separate portfolio based on the companies listed during 2018-2019. Portfolio diversification techniques were used to identify risk linked with the eight Central Eastern European stock markets.
Journal of Business Economics and Management
Stock markets stand as a financial mechanism that provides liquidity for firms and offers diversi... more Stock markets stand as a financial mechanism that provides liquidity for firms and offers diversification benefits for investors. Stock markets in the Eastern European countries are weakform efficient which exposes them to speculative prices. This study investigates the influence of the macroeconomic and firm-specific factors on stock prices of the listed companies within the Visegrad Stock Markets. The study employs regression analyses based on a Pooled OLS and Fixed Effect models with year dummies and standard errors clustered at the country level, which are robust to autocorrelation and heteroscedasticity. Data collection consists of 55 listed companies based on the weekly stock prices, from January 2013 till December 2018. The results indicate that total equity is the only significant element that influences the individual stock prices of the companies in the four established models. Additionally, increase in supply of shares declines the current stock prices and the other way a...
14th Annual International Bata Conference, 2018
Many thanks to the reviewers who helped ensure the quality of the papers. No reproduction, copies... more Many thanks to the reviewers who helped ensure the quality of the papers. No reproduction, copies or transmissions may be made without written permission from the individual authors.
14th Annual International Bata Conference, 2017
New product development (NPD) has gained more attention in innovation literature. Due to NPD may ... more New product development (NPD) has gained more attention in innovation literature. Due to NPD may determine the unique position that organizations may conquer. However, few studies have examined how salespeople decide to sell existing products and new products. This importance relies on the premise that new products need to be sold by organization's salesforce. The objectives of this study is to (1) to develop a comprehensive and integrative conceptual framework of the antecedents of salesperson existing and new product selling based on the job demands-resources (JD-R). Based on an extensive literature review and the proposed conceptual framework, a self-administered survey will be develop and will be sent to more than 400 salespeople in high-tech's organizations in Taiwan. Then, SPSS and partial least squares (PLS) will be employed to provide a descriptive analysis of the collected data and for further hypotheses testing. Finally, the study will show the expected findings and expected implications for the current literature and for practitioners.
Stock exchanges are constantly prone to instability caused by asset bubbles. Risk level within th... more Stock exchanges are constantly prone to instability caused by asset bubbles. Risk level within the stock exchanges stands as the main concern for the financial investors. Stock prices are influenced by the choices completed on the domestic and international environment. The study intends to measure the risk level of the Prague Stock Exchange (PSE) from the internal risk perspectives. Portfolio diversification formula has been implemented to obtain the risk level of the PSE from 2000 till 2017. Stock prices and the trade volume of the listed companies in the PSE were collected from the Thomson Reuters Eikon database. PSE has been considered as a portfolio based on the number of listed companies on the respective years. The results confirm that financial investors in the PSE would be compensated for the risk exposure. Diversification risk and weighted average returns from 2000 till 2017 were almost moving identically. The results indicate that PSE was influenced from the last financia...
The work primarily estimates the intrinsic value of the companies listed on the Prague Stock Exch... more The work primarily estimates the intrinsic value of the companies listed on the Prague Stock Exchange as an important price signals delivered in the stock market. Determining the estimated intrinsic value of the companies listed in the stock exchanges is essential evidence not just for mergers and acquisition, but also for banks, suppliers, customers, investors, shareholders and employees on the current and future outlook of the company. There are many unclear inputs standing on the general theoretical concepts and practical applications that lie within the valuation of publicly listed companies. The results of the study try to give small indications on an overall complex issue of the valuation process.
Studies in Business and Economics
Cryptocurrencies are becoming an exciting topic for legislative bodies, practitioners, media, and... more Cryptocurrencies are becoming an exciting topic for legislative bodies, practitioners, media, and scholars with diverse academic backgrounds. The work identifies diversification benefits when cryptocurrencies are combined with the equity instruments from Visegrad Stock Exchanges. Furthermore, the results of the study explore financial and economic benefits for the investors of combining cryptocurrencies with equity stocks on the mixed portfolio. Three different independent experiments were conducted to observe diversification benefits generated from cryptocurrencies. Results from the two experiments show that cryptocurrencies employ higher portfolio risk and generate higher returns when they are involved with equity stocks portfolios. The first experiment indicates that cryptocurrencies reduce the risk level of the equity portfolios while increase average returns. Providing the equity portfolios with additional equity stocks lower the portfolio risk which is in line with the theoret...
International Journal of Blockchains and Cryptocurrencies
The study measures the risk level linked with different portfolios of cryptocurrencies by using p... more The study measures the risk level linked with different portfolios of cryptocurrencies by using portfolio diversification techniques. Data on prices and trade volumes of cryptocurrencies were collected on a daily basis, from 2012 till 2018. Ten portfolios were constructed based on diverse types and numbers of cryptocurrencies. The results of the study confirm a negative relationship between the average number of cryptocurrencies and the average risk level of the portfolio. Involving more cryptocurrencies within the portfolio reduces the diversification risk of the portfolio. The average volatility and average correlation coefficient both drop when moving towards portfolios with more cryptocurrencies. Average returns stand against portfolio theories, where more risky portfolios offer less daily weighted average returns and the other way around. Outcomes of the study provide indications for the individual investors and financial institutions on the risk characteristic attached to the portfolio of cryptocurrencies.
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Conference Presentations by Florin Aliu
Papers by Florin Aliu