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://www.icftba.org/

    Notes

     

    ISBN

    978-1-83558-209-1 (Print)

    978-1-83558-210-7 (Online)

    Published Date

    2024-01-05

    Editors

    Javier Cifuentes-Faura, University of Murcia

Articles

  • Open Access | Article 2024-01-05 Doi: 10.54254/2754-1169/59/20230990

    Relationship Between Financial Ratios and Stock Prices: Industry Disparities in Stable Economic Environment in China

    After the extensive and thorough cleanup and overhaul of the Chinese stock market in 1995, there followed a period of remarkable and noteworthy development, which was accompanied by an equally steady and stable growth of the Chinese economy. In the current economic climate, characterized by favorable conditions, shareholders' demand for energy conversion stock prices has become increasingly intense, thereby necessitating the intervention and involvement of financial ratios in regulating and modulating stock prices. This academic paper will employ a number of analytical tools and techniques, such as literature analysis and case studies, to examine the correlation between financial ratios and stock prices in China. The focus will be on the financial, pharmaceutical, and real estate industries, with particular attention paid to stable economic environments. The findings and results of this study have established that in a stable economic environment in China, the different financial ratios are highly adaptable and malleable to different industries when analyzing stock prices.

  • Open Access | Article 2024-01-05 Doi: 10.54254/2754-1169/59/20231002

    Research on the Current Situation of Quantitative Investment in China

    Quantitative investment, as one of the many tools in the investment toolkit, plays a significant role in investment practice. Quantitative investment strategies encompass quantitative industry allocation, stock selection, and market timing strategies, among others. In the highly developed capital markets of the United States, quantitative investment has a history spanning several decades. It has garnered praise from numerous corporations and individual investors for its stable investment returns and rational investment style, making it an essential decision-making factor for other investors as well. In China, quantitative investment is still in its nascent stages. This article analyzes several issues existing in the Chinese quantitative investment landscape, such as limited hedging mechanisms for investment strategies, some strategies having a significant impact on the market environment, and the incompatibility of the unique Chinese financial market environment with traditional quantitative investment strategies. The article proposes corresponding solutions to these problems, which hold positive implications for further improving China's financial markets.

  • Open Access | Article 2024-01-05 Doi: 10.54254/2754-1169/59/20231010

    Modeling and Prediction of Birth Rate in China

    Concerns about a persistent reduction are growing against the backdrop of large changes in China’s birth rate during the last few decades. This paper explores this tendency via the lens of time series analysis, using birth rate records from 1964 through 2021 (particularly ignoring 1960-1963 due to Great Leap Forward distortions). The ARIMA and ETS models were extensively studied in our hunt for the best accurate forecasting device. The ARIMA (0,0,1) model was considered to be preferred based on comparison measures. The primary goal of this model was to predict the trend of China’s fertility rates over the following five years. The ARIMA an1``d ETS models were rigorously applied to a selected training set after initial adjustments to ensure data stationarity, followed by an evaluation of their accuracy. Our findings, which are backed by the ARIMA model, imply a disturbing trend: a 0.117 percent annual fall in China’s birth rate from 2022 to 2026. This suggests that a national fertility crisis is on the horizon. As a first step, we advise looking at the various socioeconomic reasons that may be driving this trend, as well as evaluating policy actions that could serve as potential cures.

  • Open Access | Article 2024-01-05 Doi: 10.54254/2754-1169/59/20231013

    Using Time Series Models to Predict SP500

    The S&P 500 index holds significant significance in its reflection of the overall economy, making accurate financial forecasting analysis crucial for investors. This study aims to enhance the understanding of SP500 prediction methods and their practical applications. The study utilized closing price data from January 3, 2022, to June 30, 2023, as the training set, employing three series of models: Simple models, Exponential Smoothing Model, and ARIMA models. Ultimately, a comparison was made between the prediction graphs of the closing prices from July 3 to July 13, 2023, and the evaluation indicators: Root Mean Square Error (RMSE) and Mean Absolute Error (MAE). The ETS (A, N, N) model emerged as the most advantageous with an RMSE of 54.85 and an MAE of 42.28. Furthermore, this study acknowledges the inherent inclination towards random walk patterns within the index, particularly in the realm of real-time forecasting. Through this comprehensive investigation, the models cultivated through this all-encompassing inquiry substantiate the formidable potential vested within the crafting of judicious short-term investment strategies. As such, this research harbors the potential to significantly contribute to the refinement and augmentation of investment approaches in a dynamically evolving financial landscape.

  • Open Access | Article 2024-01-05 Doi: 10.54254/2754-1169/59/20231017

    Symbol Marketing: Branding and Promotion of Beauty Products ——Taking YSL Cosmetics as an Example

    In this era of rapid economic development, all cosmetic brands are in fierce competition, but homogeneous products are flooding. The brand needs to allow potential customers to firmly choose this product among all the products within a limited time. For brands, it is very important to have a good symbol marketing. There are too many one-sided claims about this marketing strategy. By investigating the cosmetics marketing of the YSL brand in 2016, and the use of 4P theory and some data investigation techniques in the article. The final research results show that correct symbol marketing is a successful marketing strategy for merchants, and it will also leave a deep impression on customers. The final research results show that correct symbol marketing is a successful marketing strategy for merchants, and it will leave a deep impression on customers. But merchants can't do too much marketing, because it may cause customers' resentment. Therefore, symbol marketing plays an important role in the interaction between brands and consumers. It allows brands to target consumer groups more accurately, accelerate their purchase demands, and also allow them to burst into a strong consumption desire in a short period of time, but this marketing method cannot be overdone.

  • Open Access | Article 2024-01-05 Doi: 10.54254/2754-1169/59/20231025

    Analysis of the Status of Digital Economy in China's Economy

    Digital economy is the hot point of the world’s financial and economic system. The combination of usage of financial technologies and innovation of that have a lightly prospect of the financial development. To know about the impact of digital economy on Chinese regional economic promotion, this essay will question two queries: What is the status of digital finance in the past and current China economy? What aspects of risks need to be avoided in developing process of digital economy? It will combine some cases and data in China firstly and then analysis them as well as giving conclusion and suggestion in the end. Finally, this paper gets a conclusion that digital economy will be the important part of not only Chinese economy but also the world economy. In order to build up an excellent environment for that, there are some factors that have to been paid attention to, including personal information leakage, financial fraud, technical unemployment risk, national essential data leakage and market monopoly.

  • Open Access | Article 2024-01-05 Doi: 10.54254/2754-1169/59/20231027

    The Mechanism of International Entrepreneurship to Improve the Innovation Performance of Enterprises: Based on the Perspective of Social Network

    In order to avoid the negative impact of external disadvantages and changing international business environments, enterprises have an urgent need to establish an effective social network, seek improvement in innovation performance, and stabilize their position in the international market. This paper conducts an exploratory single case study on the Midea Group, investigates the mechanism of international entrepreneurship to improve enterprise innovation performance based on the formation of multiple social networks, including government network, business network, and technological network, and discovers that in the process of international entrepreneurship, three-dimensional social networks contribute to resource conversion, research and development capability, market share, and other factors that boost corporate innovation performance. This research helps to understand the key elements in the process of international entrepreneurship, as well as how to build a close social network with stakeholders, rationally allocate and share various resources, and improve the international business environment and innovation performance of enterprises.

  • Open Access | Article 2024-01-05 Doi: 10.54254/2754-1169/59/20231031

    Analysis on the Business Model of Content E-commerce

    With the rise of We Media and the continuous innovation of social e-commerce, content e-commerce has emerged. Nowadays, those who do content are doing e-commerce, while those who do e-commerce are doing content. Content e-commerce refers to e-commerce that uses content as a link to reach people, obtain consumers, and provide consumer advice to guide consumption. There are various forms of content, including text, audio, images, videos, live streaming, and so on. This article analyzes the business model of ‘Content + Social E-commerce’ based on interpersonal networks and consumer trust by summarizing existing literature and studying existing content e-commerce platforms and their forms. Finally, this article proposes suggestions for increasing platform supervision, innovating content, and improving the platform supply chain to address the current issues about content e-commerce. The article explores how content e-commerce operates and its impact on purchasing behavior, providing certain reference and inspiration for the marketing and development of the content e-commerce industry.

  • Open Access | Article 2024-01-05 Doi: 10.54254/2754-1169/59/20231043

    Impact of Covid-19 on Private Bank Based on SVB

    The COVID-19 pandemic has had a profound impact on private banks such as Silicon Valley Bank (SVB). This summary explores the impact of the pandemic on private banking operations, financial performance, and strategic initiatives. The rapid shift to digital banking, driven by lockdowns and social distancing measures, highlights the importance of strong technical infrastructure and cybersecurity measures. Private banks have had to deal with increasing credit risk and market volatility and have therefore had to adapt their lending practices and risk management frameworks. However, private banks focused on sectors such as technology and healthcare have experienced growth opportunities. Effective communication and personalized support are critical to keeping customers engaged during a crisis. It not only describes the causes of the collapse of Silicon Valley banks but also describes what changes government departments, banks, and individuals should make after these social changes, how to avoid these risks, and how to lead the company to a better path of development.

  • Open Access | Article 2024-01-05 Doi: 10.54254/2754-1169/59/20231053

    The Impact Caused by the U.S. Increasing Real Interest Rate on Volatility Index

    This paper mainly focuses on the impact of the US interest rate hike on the volatility index after March 16, 2020. In this article, daily, weekly, and monthly volatility index data from 2010 to 2022 are extracted and the ARIMA model was used to determine and analyze the difference between actual value and fitted value of volatility index after increased rate. The study forecasts the effect of rate hikes on volatility index in short-, medium-, and long-term perspective. According to the ARIMA model, the interest rate hike has the greatest impact on the volatility index in the medium term, which is not obvious in the short term, and the impact of interest rate hike gradually decreases in the long term, and finally returns to the normal trend. Compared with other studies on the impact of interest rate hike on the overall economic activity, this paper only focuses on the impact of interest rate hike on the volatility index. Through the research of this paper, the policy makers can adjust the rate of interest rate hike according to the speed and amplitude of investors' response to the policy, so as to produce turbulence and panic on the stock market to a minimum extent.

  • Open Access | Article 2024-01-05 Doi: 10.54254/2754-1169/59/20231059

    Research on the Path and Effectiveness of Mixed Ownership Reform of State-Owned Enterprises

    The theme of this article is how enterprises carry out Enterprises of the Composite-Ownership System and investigate it from three aspects: development history, reform path, and reform effect. The article argues that a mixed ownership economy is the core content of China’s economic system, which aims to improve the productivity and competitiveness of Chinese capital and prompt the unified and mutual development of the state-owned economy and private economy. The article reviews the four stages of the revolution from 1978 to today and introduces the characteristics and policy measures of each stage. The article also discusses two main paths of mixed ownership reform: whole listing and private enterprise participation, and analyzes their impact on the financing, governance, brand, innovation and other aspects of state-owned enterprises. The article finally evaluates the effect of the reform, taking some state-owned listed companies and mixed-ownership enterprises as examples, proving that mixed-ownership reform can improve the management productivity and innovation deficiency of enterprises.

  • Open Access | Article 2024-01-05 Doi: 10.54254/2754-1169/59/20231060

    Impact of Digital Inclusive Finance on Financing Constraints of Small and Medium-Sized Enterprises Review

    This review examines the influence of digital inclusive finance (DIF) on financing constraints of small and medium-sized enterprises (SMEs). As DIF is introduced to more and more enterprises, it has brought many opportunities to enterprises along with global economic growth. The introduction and development of digital financial inclusion has eased the financing constraints of SMEs, reduced information asymmetry and costs, and improved efficiency and capital availability. Research shows that digital financial inclusion has an alleviating effect on financing constraints. This paper provides a review of current research, including an overview of digital financial inclusion, SME financing constraints, and how digital financial inclusion affects SME financing constraints. In addition, this paper states the possible solutions for how digital inclusion can be more widely promoted. Additionally, this paper finds the shortcomings of the existing research to provide a different point of view for future researchers to look at the influence of digital inclusive finance on the financing constraints of SMEs.

  • Open Access | Article 2024-01-05 Doi: 10.54254/2754-1169/59/20231079

    Predicting Netflix’s Future Success by Using SWOT Analysis

    Netflix is a leader in media and entertainment in today’s world, and this paper takes a comprehensive look at Netflix. This paper provides an in-depth study of Netflix’s historical evolution, foundational underpinnings, and key business areas. The research in this paper utilizes a SWOT analysis to thoroughly assess and analyze Netflix’s inherent strengths, weaknesses, emerging prospects, and looming challenges. The investigation scrutinizes the cornerstones of Netflix’s success, including content innovation, savvy data utilization, efficient distribution network, and cutting-edge technology integration, which have ensured Netflix’s success. By extrapolating and analyzing the extensive research and discussions, this paper offers sensible recommendations that offer possibilities for the future of Netflix and chart the trajectory of Netflix’s growth. Based on the aforementioned insightful research and discourse, current projections suggest that Netflix is expected to prosper for a decade or more. This assessment emphasizes Netflix’s enduring influence and potential for continued prosperity in the ever-changing media and entertainment landscape.

  • Open Access | Article 2024-01-05 Doi: 10.54254/2754-1169/59/20231080

    Turn to Streaming Media: Digital Transformation and Innovation of Disney

    Disney, the venerable Hollywood media group, has been the most severely impacted by the COVID-19 pandemic. The pandemic has forced the company to reevaluate its operations and adapt to the new normal. One of the company’s most significant moves in response to this challenge was the launch of Disney+, a streaming platform. The platform has quickly gained 100 million global subscribers and has proven to be a beacon of hope for Disney’s business. Disney’s restructuring around Disney+ has allowed the company to focus more on expanding its global market and improving its competitive advantage in the streaming market. The addition of U.S. traditional media groups such as Warner Media and Viacom in the streaming market has increased competition for Disney. However, with its strong performance with Disney+, Disney has employed to expand its global market to increase its investment in international streaming. This has allowed Disney to gain a stronger presence in key international markets and increase its exposure to a diverse audience. Additionally, Disney’s focus on streaming platform assist has helped the company to optimize its operations and improve its competitive advantage. Disney’s strong performance with Disney+ has given the company the confidence to stay competitive in the streaming market. With the uncertainty surrounding the future of the streaming market, it is clear that Disney’s focus on innovation and expansion will continue to drive its success. The company’s investment in international streaming and its commitment to streaming platform assist position it as a strong contender in the market.

  • Open Access | Article 2024-01-05 Doi: 10.54254/2754-1169/59/20231081

    An Exploration of the Driving Factors Behind Trade Protectionism

    Given the thought experiment of David Friedman questioning the legitimacy of protectionism of international trade, this paper provides several determining factors contributing to protectionism in different dimensions: the profusion of infant industries lack the capability of achieving economics of scale, failing to compete directly with foreign mature sectors; indirect tax revenue like tariff could provide an extra fund for local government, and salvage of declining industries guarantees employment rate; and imposing protection policies could also be deems as unavoidable strategy when there is a politic competition. Overall, this paper outlines different logic reasonings behind the imposition of international trade protectionism policy. It is concluded that even though imposing international trade protectionist policy has detrimental impacts on both sides, there are still a bunch of ones exist served for political purposes other than economic considerations in the forms of trade war, high tariffs and certain quota , science and technology sanctions, etc.

  • Open Access | Article 2024-01-05 Doi: 10.54254/2754-1169/59/20231084

    Impact of Fiscal Policy on Unemployment

    Under the conditions of a modern market economy, the employment issue is a difficult problem that governments around the world must face directly. As one of the most important means for governments to implement macroeconomic regulation and control, it is of greater theoretical and practical significance to give full play to the positive role of fiscal policy in promoting employment. This paper introduces the concept of a flow model of unemployment to study the impact of fiscal policy on the labour market and explores the government's role in easing the contradiction between labour supply and demand and unifying the labour market through fiscal expenditure, taxation, social security and other means. This paper consists of four parts. The first part describes a flow model of unemployment in detail and studies how to reduce the unemployment rate theoretically. The second and third parts tell the different effects of expansionary fiscal policy and tight fiscal policy on the unemployment rate respectively, and how the government chooses the appropriate fiscal policy. The fourth part of the article selects the example of Japan in an economic down cycle to illustrate that the government needs to take into account both short-term and long-term factors, as well as the overall and local economic situation, and choose an appropriate direction or combination of fiscal policies in order to reduce the unemployment rate.

  • Open Access | Article 2024-01-05 Doi: 10.54254/2754-1169/59/20231091

    Download Behavior Analysis Based on Google Play Store Data

    As mobile apps continue to grow, app stores, as the main channel for users to download apps, are becoming increasingly important for developers and platforms. Understanding users 'download behavior and accurately predicting users' preferences and needs can effectively improve the effect of the recommendation system in the application mall, improve user experience and improve the download conversion rate. However, traditional rule-based recommender systems often face the problems of data sparsity and model complexity. Therefore, it is an urgent and valuable topic to analyze user download behavior combined with machine learning technology and to provide personalized recommendations and services. This study uses the download behavior information of Google Play Store users in 2018, and use three classic machine algorithms (linear regression, random forest and SVM) to model and predict the software rating, dig deep into various factors affecting the rating, and gain deep insight into users' preferences and behavior patterns. This will provide more accurate recommendation results for the application mall, improve the application quality and popularity, and improve the user satisfaction and loyalty, and provide an important reference for optimizing the recommendation system and personalized service of the application mall.

  • Open Access | Article 2024-01-05 Doi: 10.54254/2754-1169/59/20231092

    Future Markets in China and the U.S.: History, Current Situation and Improvement

    Given so much research on future markets in both America and China and their relationships, especially in commodities, such as oil and agricultural products, it was noticed that the researchers have done excellent research, which is, however, incomplete. This research is done in the belief that there is a lack of research on the comparison between Chinese and American future markets. This paper mainly focuses on three aspects of the two markets: (i)history and social factors (ii) types, duration, and transaction mechanism (iii) nature of regulatory structure study, and reach conclusions that after over a hundred years of development, the future markets in the United States have gone through much more challenges and more perfect. While learning from the experiences of the American future markets, China may need to pay more attention to improving the newly established laws on future markets, while considering the technological progress, as the future markets become more and more mature.

  • Open Access | Article 2024-01-05 Doi: 10.54254/2754-1169/59/20230989

    Exploring the Subprime Crisis

    This paper delves into an examination of the three primary interrelated factors that precipitated the subprime mortgage crisis: regulatory deficiencies, policy failures, and dysfunctional innovation. Furthermore, it conducts an analysis of the underlying factors that exacerbated the ramifications of this economic upheaval: the excessive proliferation of securitization, a deficiency in market transparency, inadequate risk management practices within financial institutions, and challenges associated with credit rating agencies. The subprime mortgage crisis has incited extensive discourse across diverse sectors, notably encompassing two pivotal dimensions: firstly, inquiries surrounding the transparency of assets and, secondly, predicaments pertaining to governmental intervention for market stabilization. This article undertakes a comprehensive categorization and in-depth exposition of these discrete issues, proffering meticulous explications corroborated by empirical substantiation. Culminating in its denouement, the article proffers prudent recommendations aimed at preemptively mitigating the advent of future crises. The entire discourse endeavors to maintain an objective and truthful perspective, aiming to explore the fundamental nature of the subprime mortgage crisis rigorously.

  • Open Access | Article 2024-01-05 Doi: 10.54254/2754-1169/59/20231097

    Analyzing the Resilience of Amazon and Darden Amidst the COVID-19 Pandemic: A Time-Series Study with ARIMA Modeling

    On March 16, 2020, in response to the emergence of the COVID-19 virus, the United States implemented an indefinite quarantine mandate. This unprecedented measure had repercussions, affecting businesses, schools, and government facilities across the nation. The mandate required these entities to either operate at reduced capacity or to halt operations altogether. Consequently, the stock market experienced extreme volatility during this period. This study aims to conduct an in-depth analysis of the responses to the pandemic of two firms operating in different industries. Amazon, an e-commerce and technology giant in the broadband retail industry, found itself with unprecedented demand for online shopping and cloud services considering the prevalent supply chain disruptions at the time. On the flip side, Darden Restaurants, a prominent player in the restaurant industry, had to either operate at a limited capacity, or shut down most of its restaurants altogether in coordination with the mandated closures issued by the government. This study will employ time series analysis techniques, specifically Autoregressive (AR), Moving Average (MA), and ARIMA (Autoregressive Integrated Moving Average) models. The objective is to assess the influence of COVID-19 on the selected firms and extract valuable insights from the data.

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