Advances in Economics, Management and Political Sciences

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Volume Info.

  • Title

    Proceedings of the 2nd International Conference on Financial Technology and Business Analysis

    Conference Date

    2023-11-08

    Website

    https://2023.icftba.org/

    Notes

     

    ISBN

    978-1-83558-429-3 (Print)

    978-1-83558-430-9 (Online)

    Published Date

    2024-06-14

    Editors

    Javier Cifuentes-Faura, University of Murcia

Articles

  • Open Access | Article 2024-05-21 Doi: 10.54254/2754-1169/82/20230630

    CS: GO Skins Market Impact Factors Analysis

    Video games have become an indispensable part of some young people's lives over the years. This article will focus on the analysis of a game that is very popular all over the world: CS: GO. One of the main features of this game is the traceability of skins. One of the main features of this game is the traceability of the game skins, and because of this feature, the CS: GO Skin Market has been created. The market has many features similar to those of the financial market. The most important one is the volatility of the skin prices. Based on this, this article presents and analyzes the factors influencing the price of CS: GO skins.

  • Open Access | Article 2024-05-21 Doi: 10.54254/2754-1169/82/20230667

    The Effects of Brand-self Connection on the Willingness to Pay a Price Premium: A New Look at the Consumer–brand Relationship in the Chinese Luxury Market

    Exploring brand-self connection as a tool for driving profitability is gaining traction among scholars and industry professionals. This study introduces and validates a conceptual model aimed at discerning the influence of brand-self connection on luxury consumers’ willingness to pay (WTP) a price premium. Based on survey data from 270 Chinese luxury consumers and analysis via SPSS 27.0, the results reveal that brand-self connection not only directly augments consumers’ WTP a price premium but also exerts an indirect influence through the mediating roles of brand experience and brand loyalty. Interestingly, though brand-related social media engagement emerges as a moderating factor in this relationship, its impact remains marginal within the luxury market context. Together, these findings illuminate the complex nuances of luxury consumer behavior, enriching brand management, consumer-brand relationships, and pricing strategy. Practitioners can harness these insights for strategic decision-making in the luxury market arena.

  • Open Access | Article 2024-05-21 Doi: 10.54254/2754-1169/82/20230603

    Application of NFTs in Luxury Brands

    This essay aims to investigate the primary beneficiaries within the fashion industry concerning NFTs, elucidate how luxury goods can derive benefits from NFTs, and discern potential future applications of luxury brand- related NFTs. Employing methods such as textual analysis and case studies, this research selects prominent luxury cases, exemplified by the likes of Burberry, Balmain, Givenchy, Louis Vuitton, to analyze luxury brands' current utilization of NFTs. Moreover, the study identifies drawbacks and outlines the future research direction. Additionally, through semi-structured interviews, the paper engages with three relevant industry practitioners to acquire supplementary data. From the investigation above, one of the utmost features of NFTs is that it can guarantee the property rights of virtual assets, thus ensuring the viability of virtual product transactions. A reverse analysis concludes that products with value and scarcity are transformed into NFTs to maximise their advantages. The rise of the NFT art market is a substantial evidence of this argument. As a result, luxury brand are best suited to launching NFTs and are more likely to attract buyers to consume and collect them than other categories in the fashion industry.

  • Open Access | Article 2024-05-21 Doi: 10.54254/2754-1169/82/20230678

    The Price Trend of Polypropylene

    Since the polypropylene (PP) is one of the most widely used plastics, the futures prices of polypropylene are of great significance for studying the Chinese plastic market and related investors. This paper analyzes the factors that influence the changes in PP futures prices during and before the pandemic period by examining the correlation between upstream raw materials, downstream product markets, and PP futures prices. The results show that the futures prices of the raw materials are positively correlated with PP futures prices. Additionally, during the COVID-19 pandemic, due to the reduction in domestic PP demand in China, blocked crude oil imports, and refinery closures caused by control measures, the impact of crude oil futures prices on PP futures prices is relatively diminished. Furthermore, the increased demand for plastic packaging during the pandemic led to abnormal fluctuations in the packaging stock index, making it less valuable for analyzing PP futures prices. Finally, a regression analysis is conducted to establish a generalized predictive model for PP futures prices during non-pandemic periods, which is 9.91469 * crude oil futures prices + (-1.22343) * packaging stock index + 3.96203 * textile stock index + (-0.26201) * medical devices stock index. Its reliability is tested using data tests, residual vs. fitted analysis, and K-fold cross-validation, among other methods.

  • Open Access | Article 2024-05-21 Doi: 10.54254/2754-1169/82/20230718

    Factors that Influence Player Market Value in Different Position: Evidence from European Leagues

    This research study delves into the intricate dynamics that influence player market values in various positions within European soccer leagues. Through the development and advancement of the soccer market industry and player health keeping. This study considered that soccer player's market value could be influenced by different factors or by different numbers of range nowadays compared with previous studies. By analyzing the newest version of player market value, influence factors of elite soccer players in season 2022/23 UEFA leagues. The analysis model analyzed a few key factors that influence the player's market value, such as age, goals, assists, and league. Simple/ Multiple regression models, T-tests, and ANOVA analysis are used in the examination. The research demonstrates that age plays a pivotal role, with players experiencing value growth during specific age ranges. League affiliation and performance metrics, particularly goals and assists, also emerge as significant drivers of market value. The study provides valuable insights for decision-makers within the soccer ecosystem, aiding in player management strategies and market navigation.

  • Open Access | Article 2024-05-21 Doi: 10.54254/2754-1169/82/20230741

    A Comparative Study of CAPM Based on the US Stock Market

    The capital asset pricing model (CAPM) is a highly useful and relatively simple equation used in this study for calculating the volatilities, also known as beta, of different stocks in four different industries in the S&P 500 Index and a 1-year T-Bill. The beta values of the stocks in each industry were added together to find the total beta for each industry. An overall decreasing trend in industry beta values near the end of the 2022 can be seen for banking and media & entertainment, while transportation increased a little and retail remained relatively constant, with transportation having beta values closest to one. Changes in industries with beta values near one will better reflect the overall market, as the market’s beta is assumed to be one. The purpose of this research is to compare the risks and sensitivities of these four industries after the COVID pandemic, and the results show that as the pandemic subsides, beta values have begun to shift closer towards one.

  • Open Access | Article 2024-05-21 Doi: 10.54254/2754-1169/82/20230762

    Quantify the Influence of Coral Reef Bleaching on Tourism in Small Island Developing States (SIDS)

    As global climate change keeps deteriorating, adverse effects have emerged, including global warming, rising sea levels, and extreme weather. From diverse literature, we summarized that these effects have triggered irretrievable damage to coral reefs worldwide and indirectly influenced tourism in small island developing states (SIDS). Since the economy depends drastically on tourism, we propose the study to quantify the effect caused by coral bleaching, a by-product of global warming, on tourism in SIDS. We schedule to find the relationship between coral bleaching rate and tourism development in targeted areas via a panel data model and a regression model. We expect our result can contribute to part of the ministries' legislation in SIDS

  • Open Access | Article 2024-05-21 Doi: 10.54254/2754-1169/82/20230763

    Unveiling the Shadows: Exploring the Nexus of Global Threats and Income Inequality

    The contemporary world is characterized by its diversity and globalization, and how to allocate limited resources has emerged as a complex issue. The widening gap between rich and poor has led to growing concerns regarding the inherent inequity and potential instability that arise from these disparities. Global threats, the challenge has emerged in front of people, which significantly impact people’s daily life. For instance, from the pandemic, the drastic influence on the economy to environmental crises that upend livelihoods has been presented. Moreover, environmental crises, such as extreme weather events, deforestation, and the depletion of natural resources, pose significant threats to both developed and developing nations. Lastly, political conflict could also dramatically impact citizens' lives and the state of economic growth. This essay delves into the intricate relationship between global threats and global income inequality, seeking to dissect the multifaceted dynamics that bind these two seemingly disparate phenomena, by illustrating different perspectives from the academic world and presenting the author’s personal view.

  • Open Access | Article 2024-05-21 Doi: 10.54254/2754-1169/82/20230852

    Analysis of Hedging Strategies in the Crude Oil Futures Market

    This paper introduces how companies use crude oil futures to hedge their risk and analysis the advantages and drawbacks of using crude oil futures. In the first section, we briefly introduce the crude oil market and crude oil futures. Besides, we explain some basic definitions of hedging like short and long position and basic risk. Then we introduce how companies use crude oil futures to hedge. In the second section, we analyze several cases and summarize the features of crude oil futures. First, we focus on three cases: Jet fuel cross-hedging, Metallgesellschaft AG, and Sinopec and introduce their backgrounds and how these companies operated and the functions of crude oil futures in details. Then we analyze the changes of crude oil futures market at that time and figure out why these companies had have used the crude oil futures that eventually have failed to hedge and then summarize the features of crude oil and crude oil futures. In the third section, we conclude that the crude oil futures provide advantages, such as active market and the potential to protect profit margins. However, they also face some problems like a high leverage ratio, price fluctuation, Etcetera.

  • Open Access | Article 2024-05-21 Doi: 10.54254/2754-1169/82/20230948

    Helping Mongolia out of Poverty: Analyzing Social Challenges and Public Policy

    Mongolia's challenging geography and historical development obstacles position it on the fringes of economic advancement. This paper presents a thorough analysis of its unique social, cultural, and economic hurdles, proposing visionary strategies for poverty alleviation and sustainable growth. The first section advocates a shift towards value-added industrialization, addressing the sparse population by exploring rural-to-urban migration and urging the dismantling of gender-based divisions while fostering rural entrepreneurship. The second part highlights leveraging indigenous cultural attributes and uplifting rural assembly industries to achieve balanced regional development. However, it cautions against unintended consequences like protectionism and urban-rural disparities. The third segment uncovers fundamental impediments rooted in Mongolia's self-sufficient, myopic nomadic culture, underscoring the need for education to reshape outdated mindsets. Moreover, the abrupt transition from nomadism to socialism and Western ideals has left a fragmented cultural identity, posing an identity challenge. This paper emphasizes the enduring influence of culture on socio-economic progress and underscores the significance of cultural preservation to steer Mongolia towards prosperity and global equity.

  • Open Access | Article 2024-05-21 Doi: 10.54254/2754-1169/82/20230949

    Marketing Strategy Behind the Pop Mart——Based on 4C and 4P

    Pop Mart is a solid Chinese company famous for its "blind box" toys. The company's success comes from its innovative marketing approach, characterized by its "blind box" format, which combines surprise with cultural relevance. In China, Pop Mart is popular among both teenagers and adults. During the past few years, their mall stores were usually full of customers. In this research paper, we will analyze the marketing strategy of Pop Mart and how its products attract customers of different ages. Furthermore, Pop Mart has many toys with different prices to satisfy different consumer groups. We will also introduce how they formulate the prices of different levels of their products. Pop Mart has many series of toys with different prices to satisfy different consumer groups. The company's success comes from its innovative marketing approach, characterized by its "blind box" format, which combines surprise with cultural relevance.

  • Open Access | Article 2024-05-21 Doi: 10.54254/2754-1169/82/20230950

    Risks and Countermeasures of Internet Consumer Financial Asset Securitization: A Case Study of Jingdong Baitiao

    Asset securitization is one of the most important innovations in the financial field in recent decades. The introduction of this financial instrument enables commercial banks to have both functions as "fund lenders" and "fund sellers". JD Baitiao is the product of asset securitization and is the first Internet credit consumption product in Chinese industry. Due to the huge demand in the credit market, it has been popular among users since its establishment in 2014. We will give a basic introduction to of JD and JD financial asset securitization: the development process and an introduction to the fundamentals of the whole company, including the background of the development of JD Baitiao in financial aspect, as well as the benefits of its appearance in stimulating consumption by users on JD’s platform. We further provide an analysis of the JD Baitiao, including its background, transaction process, asset pool composition, and credit enhancement arrangement. issuance, pricing, to trading, also with its quota application, repayment forms, as well as its risk control system for users. Next, through data and chart analysis, we analyze the various aspects of the securitization risks. Last, based on our analysis, we recommend several ways to improve issuance efficiency and risk management capabilities.

  • Open Access | Article 2024-05-21 Doi: 10.54254/2754-1169/82/20230951

    The Analysis of Country Insolvency in Sri Lanka

    In July 2022, Sri Lanka officially declared national bankruptcy. The bankruptcy seems to result from the outbreak of COVID. In fact, Sri Lanka's economic structure was already very fragile. In March of the same year, the United states opened the most substantial and dense cycle of interest rate hikes since 1981, which quickly led to a global spike in the cost of funds, disrupting the order of global financial markets and directly exacerbating the risk of a debt crisis in Sri Lanka. With the internal and external combined impact, the economic crisis expanded into a food crisis, debt crisis, and went bankruptcy step by step. Nowadays the current global economy is in a recessionary stage. Sri Lanka is the first country to fall, but not the last one. Other emerging market countries are facing the same problem. This paper combs through the process of Sri Lanka's national bankruptcy, deeply analysing the reasons for its bankruptcy and the pulse of its economic operation, and tries to put forward some useful suggestions and insights.

  • Open Access | Article 2024-05-21 Doi: 10.54254/2754-1169/82/20230971

    Correlation Between News and Stock Price Based on Stock Market Indices: Can News Classification Be Used as a Tool to Make Better Decisions?

    The stock market is influenced by various factors, including news events, economic indicators, and investor sentiment. Understanding the correlation between news and stock price movements interests market participants and researchers. In this paper, we explore the relationship between news sentiment and stock market trends using stock market indices. We employ natural language processing (NLP) techniques to classify news articles and analyze their impact on stock market indices, focusing on the S&P 500 and the Dow Jones Industrial Average. We utilize sentiment analysis and machine learning algorithms, including Random Forest, Loughran-McDonald (2014) Financial Sentiment Word Lists (Extended), and AFINN Lexicon, to predict stock market trends based on news sentiment. Our findings demonstrate that positive news sentiment has a more significant impact on stock prices than negative sentiment. The Random Forest model achieves the highest accuracy, while domain-specific lexicons provide valuable insights into financial news sentiment. However, predicting negative trends remains a challenge across all methods. Our research contributes to the growing knowledge of the relationship between news and stock prices and provides valuable insights for market participants and researchers.

  • Open Access | Article 2024-05-21 Doi: 10.54254/2754-1169/82/20230975

    The Research on the Impact of Shadow Banking on Small and Medium-sized Enterprises in China

    Because of the serious financial repression in China's financial system, the traditional commercial bank's credit is very large. It is difficult to reach small and medium-sized enterprises and industries restricted by credit policies. In order to solve this existing problem, those Independent of traditional commercial banks, not subject to or less supervision by the central bank, and capable of providing credit Institutions have emerged, traditionally known as shadow banks. Shadow banks have been quantitative easing money It played an important role in the implementation of the policy. This paper will explain China's shadow banking system from the introduction of shadow banking, the development of shadow banking in China and some of its impacts, as well as the introduction and analysis of special cases of shadow banking and the impact of shadow banking on small and medium-sized enterprises. This paper draws the following conclusions through research: With the growing development of shadow banking in China, China's shadow banking system is becoming increasingly complex, and small and medium-sized enterprises have gained more development opportunities due to the characteristics of high risk and high returns brought by shadow banking.

  • Open Access | Article 2024-05-21 Doi: 10.54254/2754-1169/82/20230977

    Shadow Banking in the United States: Emerging Factors, Operation Modes and the Current Situation of Supervision - Based on the Comparison with Chinese Shadow Banking System and Market

    In 2009, Ben Bernanke, chairman of the Federal Reserve, described shadow banking as a financial intermediary that converts savings into investments in addition to regulated deposit-taking institutions. To put it simply, the essence of shadow banking is a financial innovation that breaks through traditional financial institutions in order to maximize profits in the financial market environment. In this paper, we compare the U.S. and Chinese shadow banking system and their market system. From that, we analyze their similarities and differences from the aspects of emerging factors, classification and scale, and operation mode. Based on the above analysis, we then discuss the current situation of supervision of shadow banking in the United States and find that the U.S. shadow banking is negligent in institutional constraints and has practical difficulties in legal supervision. Finally, we put forward some suggestions on the future development and financial structure optimization of shadow banking.

  • Open Access | Article 2024-05-21 Doi: 10.54254/2754-1169/82/20230978

    The Collapse of Silicon Valley Banks Improves Risk Management for Other Commercial Banks

    Silicon Valley Bank, a subsidiary of Silicon Valley Bank Financial Group, provides loans to venture capital as well as startups. Silicon Valley Bank primarily serves technology-based companies. Our paper focuses on the implications of the Silicon Valley bank bankruptcy for other commercial banks from four aspects. First, what are the risks in the business operation model of Silicon Valley banks; second, what caused the bankruptcy of Silicon Valley Bank; Third, the impact of the bankruptcy of Silicon Valley Bank; Fourth, the bankruptcy of Silicon Valley Bank has implications for the development of Chinese commercial banks. The main reason for the bankruptcy of Silicon Valley Bank was the Fed's interest rate hike. As a traditional commercial bank, Silicon Valley Bank's profit model is mainly based on interest differential. Affected by the epidemic, the demand for loans from Silicon Valley banks declined, so Silicon Valley banks chose to buy US Treasury bonds and MSBs. The Fed's interest rate hike coupled with a large amount of money printing in the United States has led to inflation. The sharp depreciation of US Treasuries and MSBs, coupled with the end of the mobile Internet cycle, forced Silicon Valley banks to sell a large number of unmatured bonds. Eventually a bank run occurred, leading to the bankruptcy of Silicon Valley Bank.

  • Open Access | Article 2024-06-06 Doi: 10.54254/2754-1169/82/20230995

    Early Exercise of American Options in the Two-Period Binomial Model

    This paper is mainly about the research object of early exercise of American options by two-period binomial models. In this work, we use the two-period binomial model to analyze the price of American options and European options, decide whether to exercise early or not, and compare the differences between American options and European options. What is more, we use Python to help us with our calculations. Options are a kind of financial derivatives that help one to arbitrage, speculate, and hedge. To make more profits, people can use the binomial model to calculate the price of options. Through this analysis, we got to know each price of options in different situations, and we know that the price of American options is always equal to or larger than the price of European options. This work can help us to calculate the price of the option and decide if it is exercised early, and make sure to get more profits and apply it to daily life.

  • Open Access | Article 2024-05-21 Doi: 10.54254/2754-1169/82/20230996

    A Comparative Study of Stock Selection Models Based on Decision Tree Algorithms

    In this paper, the decision tree model in data mining is applied to select stock characteristics that can be effectively used for stock selection by using the C4.5 algorithm and the CART algorithm, respectively, in combination with the strategies of fundamental analysis and technical analysis. The paper concludes that the decision tree models constructed by the C4.5 and CART algorithms both have better classification ability for stock selection and portfolio construction, but the decision tree model constructed by the C4.5 algorithm is simpler. The stock portfolios determined by the decision tree model are able to achieve an excess return of 13.4% relative to the CSI 300 index, thus proving that the decision tree model is effective in stock selection and stock portfolio construction.

  • Open Access | Article 2024-05-21 Doi: 10.54254/2754-1169/82/20231111

    Unraveling Financial Markets: Deep Neural Network-Based Models for Stock Price Prediction

    This paper delves into the potential and challenges of leveraging deep neural networks (DNNs) in stock price forecasting. Traditional econometric models often grapple with the complexities of financial time series data, leading to the exploration of DNNs, especially architectures like Long Short-Term Memory (LSTM) networks, to capture intricate patterns in such data. While these networks present promising results, challenges such as model interpretability, non-stationarity of data, overfitting, and computational demands remain. The financial sector's increasing digitization and influx of alternative data offer a unique opportunity for DNNs, emphasizing their capability for automatic feature extraction. However, the integration of DNNs necessitates a multi-disciplinary approach, involving financial experts, data scientists, and computational specialists. The paper concludes with an optimistic outlook for the synergy between deep learning and traditional financial theories, aiming for a harmonious blend of modern computational techniques with foundational financial principles.

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