Journal of Business Economics and Management

Detecting bubbles in world aluminum prices: Evidence from GSADF test

Menglin Ni, Xiaoying Wang — Wed, 04 Dec 2024 00:00:00 +0200

The aim of this research is to assess the existence of multiple bubbles in the global aluminum market by employing the Generalized Supremum Augmented Dickey-Fuller (GSADF) methodology. This method offers practical time series analysis tools for identifying periods of rapid price escalation, followed by subsequent collapses. Findings indicate the identification of six explosive bubbles occurring between January 1980 and March 2023, during which the aluminum price strayed from its underlying fundamental value. Additionally, this finding is consistent with the asset pricing model, which generally considers both fundamental and bubble components. Based on the empirical results, the aluminum price bubbles are positively influenced by the copper price, GDP, the U. S dollar index, industrialization of China, China’s urbanization rate, whereas the global aluminum production, oil price, and base metal price index have a negative explanatory effect on the aluminum price bubbles. To effectively stabilize the international aluminum price, policymakers are suggested to be vigilant in identifying bubble episodes and monitoring their progression. Additionally, regulatory authorities should implement measures to curb excessive speculative activity during periods of extreme market volatility, thereby mitigating excessive price fluctuations and the formation of aluminum bubbles.

Factors influencing the use of computer-assisted audit techniques in the digital era

Melinda Timea Fülöp, Constantin Aurelian Ionescu, Nicolae Măgdaș, Dan Ioan Topor — Wed, 04 Dec 2024 00:00:00 +0200

Digitalization is a challenge of the current environment, and the digital transition has extended to the audit profession. It affects the technology used by clients and the pressure on auditors by audit regulations to apply and use computer-assisted audit techniques (CAATs). The results of specialized literature indicate that the application and use of CAATs in auditing practice are limited. Thus, the present research aimed to investigate the factors that could influence the use of CAATs by auditors, based on the Unified Theory of Acceptance and Use of Technology (UTAUT). The empirical investigation consisted of 112 questionnaires that were analyzed by external auditors. The research results indicated a positive influence on the behavioral intention to use CAATs, which was influenced by performance expectations and facilitating conditions. In contrast, effort expectations and social influence did not affect the behavioral intention to use CAATs. We conclude that management should have a greater involvement in encouraging the use and application of CAATs, including supporting the process with the necessary resources. This work augments the knowledge of the factors that influence the behavioral intention to use CAATs among auditors in Romania and can be a useful resource for practitioners.

SMEs as victims of competition violations in the EU: an empirical investigation

Fatih Cemil Özbuğday — Thu, 05 Dec 2024 00:00:00 +0200

This paper investigates the nature and extent of competition violations experienced by SMEs in the EU-27 countries. Using data from the Flash Eurobarometer 510 Survey, this study employs a Heckman sample selection model to correct for potential selection bias. The findings reveal that while most SMEs do not face significant competition problems, those that do mainly struggle with high prices and powerful suppliers imposing unfair conditions. Interestingly, SME size and age do not significantly affect exposure to antitrust offenses, but industry sector and geographical location do. The paper emphasizes the potential roles of SMEs in competition authorities’ market oversight activities, given their unique market position and ability to detect competition violations early. Finally, the article calls for continuous engagement with SMEs by policymakers, regulators, and competition authorities to improve market competition.

Assessment of the impact of venture capital investment on labour productivity: an analysis of the EU countries

Aistė Padgureckienė, Diana Cibulskienė — Wed, 11 Dec 2024 00:00:00 +0200

This study investigates the impact of venture capital investments on the labour productivity of the European Union countries. Considering the fact that there is a lack of research on evaluating the effects of venture capital investments on labor productivity at the country level, the methodology designed in this article is used to assess heterogeneous impact of venture capital investments, which is determined by the innovative environment or financial development factors, on labour productivity in 25 EU countries. Panel data of 25 European Union countries were used for the regression analysis. The findings of the empirical study show that the volume of venture capital investments does not determine the growth of labour productivity in the analysed countries. Such results can be explained by the economic findings presented by other researchers. Some of the studies found that it is not venture capital investments that determine economic growth, innovation or technological development, but these economic phenomena increase venture capital investment. Based on statistical data, the greatest need for venture capital investments in Europe is in sectors that develop new technologies and in the information and communication technology sector. Therefore, the volume of venture capital investments in the analysed countries is too small at the macroeconomic level and their effect on labour productivity is manifested at the level of companies or specific sectors.