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

    978-1-83558-141-4 (Print)

    978-1-83558-142-1 (Online)

    Published Date

    2023-12-01

    Editors

    Javier Cifuentes-Faura, University of Murcia

Articles

  • Open Access | Article 2023-12-01 Doi: 10.54254/2754-1169/47/20230360

    Valuation Analysis of Semiconductor Industry of US Based on Portfolio Principle

    Many of the world's semiconductor R&D, production and manufacturing technology companies are going public in the US, hoping to leverage the power of US stock market capitalization to promote their own companies and industries. Valuation of the semiconductor industry is therefore essential. This study evaluates US-listed semiconductor companies based on portfolio principles with an enterprise value greater than $50billion. In the benchmark portfolio, individual stock’s weights are assigned in accordance with the enterprise value weighting and a number of indicators are calculated based on fundamental data for comparison with the forecast portfolio. The paper uses absolute and relative valuation methods to value the forecast portfolio, and compares with benchmark portfolio on the derived results. Finally, conclusions and future investment outlook are drawn from the results of the comparative analysis. According to the analysis, investing in the semiconductor industry is a good choice. In fact, not only can investors share in the huge profits from the rapid development of the industry, the semiconductor industry itself can also benefit from the strong capital market, which is something that complements each other. These results shed light on guiding further exploration of valuation analysis of semiconductor industry.

  • Open Access | Article 2023-12-01 Doi: 10.54254/2754-1169/47/20230361

    Research on OTA Platform Supervision and Management Based on Game Theory Background

    In the era of big data, the OTA platform uses information advantages to abuse data to seek more "big data price discrimination" behaviors of consumers' more benefits. The low information on the market has become a profitable tool for "price discrimination" on the OTA platform. Under the circumstances of this kind of information, it is difficult for consumers to not only be "price discrimination", but also it is difficult to protect their rights after being aware. At this time, the government's active intervention is required to regulate the "big data price discrimination" behavior of the OTA platform. In order to curb the further flooding of "price discrimination", this article has established a game tree model to analyze from the dynamic game perspective of the government and the OTA platform, and the impact of changes in the transparency of information on the stability of the evolution game system. In addition, the relevant suggestions on the OTA platform of government supervision and governance are explained from different levels of information transparency.

  • Open Access | Article 2023-12-01 Doi: 10.54254/2754-1169/47/20230365

    Study on the Applicability of LSTM for Predicting Stock Price when Facing Extreme Events

    The analysis of stock price fluctuations holds considerable significance in the field of economics, particularly given the present environment characterized by unpredictability and rapid changes. Previously, the long short-term memory (LSTM) model has been employed effectively in addressing time series problems, including stock market forecasting. However, in the current dynamic landscape, the ability of LSTM to adapt to volatile conditions and provide accurate predictions is an area that merits further investigation. This study gathers stock data from prominent and representative companies, namely Apple, Google, Amazon, and Microsoft, spanning from January 2012 to March 2023. Specifically, two significant events are examined: the impact of the Covid-19 outbreak on the US stock market on February 26, 2020, and the Russia-Ukraine conflict occurring on February 26, 2022. By dividing the stock data surrounding these events into training and test sets, this research aims to evaluate the differential performance of LSTM in scenarios where it possesses no prior knowledge of these events versus situations where it has already assimilated the influence exerted by them.

  • Open Access | Article 2023-12-01 Doi: 10.54254/2754-1169/47/20230366

    Credit Card Fraud Prediction Based on Machine Learning Algorithms

    The escalating use of the Internet has led to a surge in online shopping and e-commerce, resulting in a corresponding increase in credit card fraud incidents. Therefore, this research focuses on employing machine learning techniques, which offer enhanced precision and efficiency compared to manual detection, to identify fraudulent activities. To establish the association between credit card transaction attributes and the presence of fraudsters, this study initially gathers data from Kaggle, subsequently normalizing the collected data. Furthermore, the data exhibits severe imbalance, leading to overfitting concerns. To ascertain feature correlations, a correlation heatmap is constructed. Moreover, this investigation selects three models for analysis. Finally, the performance of each model is evaluated using a confusion matrix and derived metrics. The findings reveal that both the decision tree and random forest models exhibit optimal performance, achieving 100% across all indicators. The most influential factors in determining credit card fraud involve the ratio to median purchase price and the geographical proximity of the transaction location to the cardholder's residence.

  • Open Access | Article 2023-12-01 Doi: 10.54254/2754-1169/47/20230369

    Stock Price Prediction Based on CNN-BiLSTM Utilizing Sentiment Analysis and a Two-layer Attention Mechanism

    The recent robust growth of the economy has instigated a heightened interest among financial experts in the domain of stock forecasting. Stock price forecasting frequently involves a non-linear time series projection due to the volatility nature of the stock market. This research proposes and develops an effective method with sentiment analysis neural network model for forecasting the closing price of the following day based on the time-series properties of stock price data. Several factors affect stock prices at the same time. Simple models can only predict with difficulty. As a result, sentiment analysis will be included in this study to increase the model's precision. The model architecture encompasses the utilization of a Convolutional Neural Network (CNN) for extracting salient features from input data, Bidirectional Long Short-Term Memory (BiLSTM) for acquiring knowledge and forecasting the extracted features, and an Attention Mechanism (AM) for capturing alterations in feature states within the time series data during the prediction process. The NASDAQ Composite Index's closing price the next day for 1281 trading days was predicted using this method in conjunction with three other methods to show the method's efficacy. The experimental results demonstrate that among the four techniques with sentiment analysis, CNN-BiLSTM-AM with sentiment analysis achieve the highest prediction accuracy and performance, and the errors of this model are the smallest. The CNN-BiLSTM-AM approach with sentiment analysis outperforms the other methods in terms of suitability for stock price prediction and is better able to guide investors towards more profitable stock investing choices.

  • Open Access | Article 2023-12-01 Doi: 10.54254/2754-1169/47/20230371

    Impact of Models and Eigenvalues on Gold Price Forecasting

    The burgeoning synergy between computer science and finance has fostered an increasing integration of these domains. Machine learning has become a prevalent tool in aiding financial analysis and forecasting. Compared to traditional forecasting techniques, machine learning-based models exhibit enhanced accuracy and broader applicability. This study introduces three models, namely linear regression, random forest, and support vector machine, to analyze and predict gold prices. The influence of Eigenvalues on model performance is also examined. In the end, the support vector machine model constructed by using two kinds of US dollar exchange rates, US Treasury bond interest rates, and the 10-day moving average of gold prices and passed cross-validation obtained the best model performance evaluation index, and its R2 index reached nearly 0.99. It can be concluded from this study that the performance of the model is poor when only one eigenvalue is used to build the model, while for the case of building a model with multiple eigenvalues, the contribution of the U.S. Treasury bond rate to the improvement of the performance of the prediction model is the smallest. Therefore, appropriately increasing the number of eigenvalues is conducive to improving the performance of the model, and selecting the types of eigenvalues reasonably is also conducive to improving the accuracy of the model.

  • Open Access | Article 2023-12-01 Doi: 10.54254/2754-1169/47/20230372

    Investigation of LSTM Model in Stock Prices Prediction During the COVID-19 Based on Smartphone Brands

    The unforeseen outbreak of the COVID-19 pandemic in early 2020 had a profound impact on the real economy and business sectors, leading to a period of heightened volatility. The stock price of smartphone brands had shown an abnormal trend of fluctuation and hard to be predicted by using the inchoate regression and machine learning models. In this paper, Long Short-Term Memory (LSTM) is adapted to predict the stock price of five top smartphone brands. Spanning the period from 2016 to 2021, the dataset for each brand contains 1258 data points, which are split into two groups, training set including 850 observations and test set including 408 observations after the pandemic in 2020. The model employed two prices as x and the next price as y to be predicted. The structure of the model in this work is composed of 3 layers, with 64 and 5 neurons in the first two LSTM layers respectively and a dense layer for dense equal to 1. The model is based on TensorFlow system with Adaptive Moment Estimation optimizer and Mean Absolute Error as the loss function. For the model checking, Root Mean Standard Error, Mean Absolute Error and R-square score are calculated to evaluate the precision of the prediction. Experimental results indicate that under an unexpected external condition, LSTM is effective in stock price prediction to a certain extent. Further investigations are still needed to improve LSTM applied in the stock market.

  • Open Access | Article 2023-12-01 Doi: 10.54254/2754-1169/47/20230362

    Analysis of Pixar Movie Marketing Strategy Based on 5T Theory: Take Turning Red as an Example

    This study introduces the brand background of Pixar Animation Film Company and analyzes its marketing strategy using the 5T theory. This study chooses Turning Red as a case study, and through the analysis of its marketing strategy, some shortcomings are found. First, through the analysis of Tools, "Turning Red" failed to meet the audience in cinemas, which led to the disappointment of some fans. Although Pixar and Disney used multi-platform and multi-channel promotional tools, their marketing effect was reduced due to some limitations. Second, for Tracking, although Pixar registered separate social media accounts for each movie, there was relatively little in-depth analysis and response to user feedback. This makes it difficult for the company to fully understand the audience's needs and expectations. Based on these findings, this study makes some recommendations to improve Pixar's marketing strategy. This study makes recommendations to strengthen the multi-platform and multi-channel marketing approach and enhance user feedback analysis. These recommendations are expected to help Pixar further improve the marketing effectiveness of its films, increase audience engagement and satisfaction, and contribute to the company's continued growth.

  • Open Access | Article 2023-12-01 Doi: 10.54254/2754-1169/47/20230375

    The Impact of the Lifting of Pandemic Control on the Shanghai and Shenzhen Stock Indexes

    Many previous studies have analyzed the pandemic effect to the different fields of economic. This essay analyzes the effect of lifting of global pandemic control to SZSE and SSEC stock market by mainly using ARIMA model and Stata. The essay finds that the lifting the global pandemic has indeed affect both SZSE and SSEC market by accelerating the return rate trend of stocks. The wired point is the sharp decreasing trend initially after the lifting of control. This phenomenon has related to financial theory to find out the reasons. The first reason is because the news is within the market expectation and thus did not stimulate stock price. The second reason is because the overall worse economic situation and market expectation outweigh the effect of this good news effect. The last reason is because many people got sick after the lifting of pandemic control and thus affect economic activity. Finding these reasons, the policymaker can have better way to stimulate the stock market in the next time. Policymaker can be also aware of the significance of building a more efficient market. Investors can have more understanding toward SZSE and SSEC market and be cautious to good news in the next time. Better strategy can be adopted to catch stock return in the similar strategy.

  • Open Access | Article 2023-12-01 Doi: 10.54254/2754-1169/47/20230376

    Virtual Human Influencer and Its Impact on Consumer Purchase Intention

    Due to the extensive usage of online influencers by marketers, "influencer marketing", a form of which a business recruits and financially compensates social media influencers to spread stories about its product among their thousands of followers, is rising in popularity [1]. Among all kinds of influencer, virtual influencers are digital creatures who naturally love digital products like NFTs and video game skins, making them better spokespeople for metaverse themes. In response to customer demand, the number of effective and active virtual influencers is growing. There are 58 percent of US customers surveyed in March 2022 were already following a virtual influencer. The question in this study is whether customers bought products after virtual influencer recommended. In another word, virtual influencer contact may affect consumers' buying intentions. This study tends to present that in offline and online purchasing contests, virtual influencers improve customer buying intention. According to the finding of this study, the presence of a virtual influencer increases the consumer's propensity to make a purchase once this consumer has been exposed to the presence of the influencer.

  • Open Access | Article 2023-12-01 Doi: 10.54254/2754-1169/47/20230377

    To Solve the Problem that Tampons are Difficult to Develop in the Chinese Market Based on Consumer Psychology

    Tampons as safe, convenient, hygienic, and can give women the greatest degree of menstrual freedom of health products have tried to enter the Chinese market in several decades, but repeatedly failed. In contrast, in the European and American markets, tampons have long been widely used by women as hygiene products, occupying most of the market share of the same category of goods. Its product characteristics and use methods are well publicized and deeply rooted in the hearts of the people. This phenomenon not only reflects that there are many ideological and cognitive concepts in contemporary Chinese society that need to be updated, but also reflects that women's physical and mental health needs greater attention. At the same time, tampons themselves are also facing problems such as product innovation, inadequate publicity, and no price advantage. Various limitations make the development of tampons difficult. The promotion of tampons has great significance for women's health and social progress. Based on the research literature, this paper expounds on the characteristics and incomparable advantages of tampons, analyzes the reasons for the obstruction of the promotion of tampons in China, and puts forward practical suggestions for the promotion and sale of tampons in different links based on consumer behavior.

  • Open Access | Article 2023-12-01 Doi: 10.54254/2754-1169/47/20230370

    Stock Price Prediction During the COVID-19 Pandemic Based on the GRU Algorithm

    Stock price prediction during the Covid-19 pandemic has emerged as a significant research domain within the financial sector, giving rise to a multitude of neural network-based methods aimed at forecasting stock prices. This paper uses multiple machine learning models and analyzes the stock fund flows to attempt to learn and predict price trends from a dynamic perspective. The data used in this study includes the closing price, change rate, and fund flow of an A-share Pharmaceutical stock in the most recent 1000 trading days. The Mean Squared Error (MSE) is used as the model evaluation metric, and the model’s MSE can reach 0.013 after training. The predictions generated by the model exhibit a high degree of alignment with the actual price trends, indicating its accuracy in short-term price trend prognostication. These findings substantiate the efficacy of the model for stock price prediction during the pandemic period, thereby contributing to the body of knowledge within the field of financial forecasting.

  • Open Access | Article 2023-12-01 Doi: 10.54254/2754-1169/47/20230363

    Analysis of Consumer Behavior of Generation Z from Prospects for Non-Fungible Token Clothing Consumption

    With the development of digital technology, the fashion industry has also begun a digital transformation. Non-Fungible Token (NFT) clothing, as a new fashion trend, has always been a new direction pursued by brands. At the same time, the main group of consumers is also gradually shifting from the previous Generation Y to Generation Z. Generation Z is the future consumption potential group, they deserve brands to adjust their consumption strategies. By exploring the consumption behaviour of Generation Z and its attitude towards virtual fashion, this paper analyzed the fitness between NFT clothing and Generation Z. And it used the literature analysis method to analyze and summarize the papers related to virtual fashion, NFT clothing and the consumption view of Generation Z. Based on the result, it can be seen that the characteristics of NFT clothing are in line with the consumption psychology of Generation Z. Although NFT clothing is still in its early stage, it can be predicted that Generation Z will be the main consumer group of virtual fashion in the future based on their interest in virtual fashion. The future of brands focusing on NFT clothing is bright. By studying Generation Z consumption psychology, this paper hopes to contribute to brand marketing strategy for the future.

  • Open Access | Article 2023-12-01 Doi: 10.54254/2754-1169/47/20230379

    The Research on the Application of Metaverse in the Cultural and Tourism Industry

    This research discusses the concept and characteristics of the Metaverse and the features and development of the cultural tourism industry. The Metaverse, originating from science fiction literature, is a virtual reality (VR) or augmented reality (AR) world that goes beyond the physical universe, created by technologies such as cloud computing, blockchain, big data, and the Internet of Things. The Metaverse features self-configuration, immersive experiences, and a blend of virtual and real-world elements. Meanwhile, the cultural tourism industry is the third industry developed based on cultural and ideological concepts, emphasizing the integration of culture and tourism. With the support of national policies, the industry is continuously expanding, with new cultural products and themes emerging. However, current cultural tourism develops towards homogenization and still relies on 2D methods such as videos and audio, the use of technology in the industry mainly focuses on digitization and convenience. The potential use of the Metaverse in the cultural tourism industry can enhance the immersive experiences for users and create interactive environments to bring great development impetus to the cultural tourism industry, which is also a practical way for the Metaverse technology.

  • Open Access | Article 2023-12-01 Doi: 10.54254/2754-1169/47/20230380

    Competitive Advantages and Challenges of E-Commerce

    The rise of e-commerce, driven by the integration of technology into daily life and the increasing consumer preference for online shopping, has revolutionized the global trade of goods. Traditional retailing relied on physical stores, while e-commerce eliminated the need for a physical storefront by hosting merchandise in online stores. This shift reduced operational costs and offered consumers a vast variety of goods. However, e-commerce lacks the social experience of traditional retailing. This paper analyzes the evolution and current stage of e-commerce, evaluates the advantages and shortcomings of online retail, and provides insights into its future development. Understanding the transformative impact of e-commerce on the retail industry is crucial for stakeholders to make informed decisions and adapt to the changing landscape. By examining the past and present of e-commerce, this research contributes to a deeper understanding of its dynamics and implications. This knowledge serves as a foundation for anticipating the future trajectory of e-commerce and its continued growth.

  • Open Access | Article 2023-12-01 Doi: 10.54254/2754-1169/47/20230383

    Evaluate the Impact on the Chinese Air-traffic after the Opening of the COVID-19 Pandemic Based on ARIMA Model

    After the 3 years control of COVID-19 pandemic, all aspects of control were opened, it has many impacts in every regard. The essay uses the ARIMA model to predict the turnover and the stocking price of the aviation after the opening of the pandemic, then use these testing data to compare with the actual data, so that the difference between these data can illustrates the impact of the opening on the airline industry. The main findings are that this policy would cause the stock price boost greatly, then fluctuated, came back to the normal trend and even declined. The meaning of this research is to evaluate the counterplan and prospect of the airline industry in the future using the actual data to enhance the accuracy. There are some advice for the policy makers, investors, for policy makers and controllers, for example, the investors should sell their stock in short term after the open of the pandemic since the stock price will experience a dramatically decrease. The controllers should lead the investors to avoid the excessive invests which will disturb the aviation stock market.

  • Open Access | Article 2023-12-01 Doi: 10.54254/2754-1169/47/20230384

    Motivation and Performance of Backdoor Listing: A Case Study of Shunfeng

    With the arrival of the new normal of economic development, the growth rate of business volume in the express delivery industry has been gradually slowing down since 2015, while the emergence and development of the e-commerce industry will have an impact on traditional express delivery enterprises. Through the survey method, comparative method and literature method, this paper selects the case of the backdoor listing of SF, and through the analysis of the internal and external motivations of the backdoor listing, the performance analysis using the consolidated financial performance method, as well as the analysis for its listing risks, it can provide reference and reference for the future listing of enterprises. The results of this paper indicate that most of the courier industry chooses to go public by backdoor listing in order to broaden their financing channels, and that backdoor listing can improve corporate performance to a certain extent. In addition, this paper can provide an evaluation method and reference experience for other enterprises to list in shells, and provide reference ideas for potential shell companies whether to give up shell resources. It also provides regulatory suggestions for the formulation of relevant policies in China.

  • Open Access | Article 2023-12-01 Doi: 10.54254/2754-1169/47/20230373

    Analysis of Geely's Acquisition of Volvo

    Cross-border M&A is one of the ways for enterprises to enhance their international competitiveness as soon as possible. Enterprises may gain technology and other excellent resources through cross-border M&A. In 2008, the financial crisis triggered by the subprime mortgage crisis in the United States caused the consumer market to shrink, and a large number of car companies suffered serious losses and faced a huge risk of bankruptcy, so some well-run companies acquired those companies that were on the verge of bankruptcy. This study examines Geely's acquisition of Volvo during the financial crisis and analyzes the impact of the acquisition. According to the analysis, this acquisition has enabled Geely to obtain many advanced technologies and patents, increase market share, and show a growth trend in revenue. However, the large amount of debt in the acquisition process also makes Geely face huge financial risks in the later stage, as well as problems such as corporate culture integration, and overall, this acquisition provides a good foundation for Geely's subsequent development. These results demonstrate the unique features of Geely's acquisition of Volvo under the financial crisis, summarize the impact of the later period, and make recommendations for Chinese enterprises to carry out cross-border mergers and acquisitions..

  • Open Access | Article 2023-12-01 Doi: 10.54254/2754-1169/47/20230386

    The Relationship Between Capital Structure and Firm Performance

    The composition of the enterprise's entire capital is referred to as its capital structure. It is also referred to as a financial framework at this time. Not just long-term capital structures are included. Short-term capital structures are also included. It also includes dynamic capital structure in addition to static capital structure. Before this article, much research have studied and integrated the relationship between capital structure and company. This article hopes to absorb the results of past research and conduct a research expansion and give the view that belongs to this article. The research topic of this paper is the impact of capital structure on firm performance. This paper compares the impact of different companies through different capital structures and start with different types of companies to observe its capital structure. In this paper, a comparative analysis is mainly adopted, and the capital structure of companies in different types, different regions and social conditions is compared, so as to analyze the impact of the company's impact on the capital structure and finally conclude and give suggestions.

  • Open Access | Article 2023-12-01 Doi: 10.54254/2754-1169/47/20230388

    The Evolution of Generally Accepted Accounting Principles: A Focused Look into the International Financial Reporting Standards

    Financial reporting has long been an essential lens through which shareholders assess the management’s operation of companies and through which external users such as potential investors evaluate how companies are structured and perform financially for economic decision-making. For this reason, the truth and fairness of financial statements is emphasized in financial accounting to reflect the economic substance over the legal form. As cross-border trades and investments grew by leaps and bounds after the World War II, a call for a globally uniform and consistent set of accounting standards thrived in full swing. Hence, the genesis of IAS and subsequently IFRS for better quality, comparability, understandability, and transparency of financial statements. Over recent years, the trend in accounting harmonization with gradual convergence between IFRS and US GAAP has also become prominent. However, accounting standards are never perfect in presenting economic reality upon their inception. Blatant financial scandals play an indispensable role in shaping accounting standards for improvements. This paper takes a focused look into IFRS to examine how the generally accepted accounting principles evolve in reaction to scandals and loopholes criticized, with a detailed analysis of the standards for leases and revenue recognition. A generic discussion on the difference and convergence between IFRS and US GAAP concludes this paper.

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