Economics and Business Letters

The speculative tech bubbles of US artificial intelligence sector

2025-03-19T11:06:33+01:00

This study identifies speculative bubbles in leading AI- US stocks from 2014 to 2025. By using the Generalized Supremum Augmented Dickey-Fuller methodology, multiple bubble episodes are detected during the pandemic-induced market exuberance from 2020 to 2022, and then after the excessive AI optimism post 2023. Interestingly, the panel analysis of all companies reveals synchronized speculative behavior that is found to be driven by liquidity, financial market stress and economic uncertainty. The investors’ sentiment is also found to influence bubble formation. These results highlight the importance of fundamentally assessing the longer-term prospects of the AI markets.

Are green and dirty cryptocurrencies connected with climate risk attention?

2025-04-07T07:59:55+02:00

This study examines the spillover effect of climate risk attention on green and dirty cryptocurrencies using the R-squared connectedness approach. We construct climate risk attention indices based on Google Trends data. Our findings unveil a dynamic and asymmetric nature of connectedness. We observe that climate risk attention serves as the net receiver of spillover across all market conditions. This result remains consistent even when employing alternative proxies and different methodologies. The study contributes to the ongoing efforts in sustainability, highlighting the significant role of climate risk attention in influencing investment and regulatory decisions.

Cash holding models in nonprofit organizations: an integrative approach

2025-03-19T11:17:41+01:00

This study proposes a model to better explain the cash holdings of nonprofit organizations (NPOs) using a sample of 9,185 charities from England and Wales for 2015-2022 (51,685 annual observations). We adapt the traditional variables of Opler et al. (1999) to NPOs and combine them with those already proposed by Fisman and Hubbard (2003) and some additional NPO’s specific variables. Our results show that most of the explanatory power comes from the traditional adapted variables although specific variables are also significant. Therefore, we propose an integrative model for determining NPO cash holdings. We also find that the pecking order arguments are the most appropriate to explain the behavior of the NPOs.

The impact of product attributes on sustainable purchasing and its emotional effects on consumers: the role of social enterprises

2025-03-27T09:51:59+01:00

This research delves into the role of SEs in promoting sustainable consumption by examining how the functional and sustainable attributes of their products influence consumers’ emotional responses and purchasing decisions. A study conducted with 380 consumers of SEs reveals that, while sustainable qualities elicit positive emotions such as pride and well-being, functional attributes—such as durability and reliability—play a significant role in shaping purchase decisions. These findings underscore the importance of integrating sustainability within a strategy centered on product quality and performance, rather than relying solely on ethical positioning. This research contributes to the ongoing debate on responsible consumption and provides valuable insights into the development of marketing strategies aimed at strengthening consumer trust and fostering long-term loyalty.

Interest rate uncertainty and savings: evidence from microdata

2024-11-08T18:43:13+01:00

This paper studies the effect of interest rate uncertainty on savings using microdata from the Survey of Consumer Finances 1989-2016. We find that, moving across the distribution of labor income, average wealth increases while interest rate uncertainty tends to fall. Strikingly, the average wealth of the top 10% labor income earners is on average twenty-fold larger than that of individuals belonging to the bottom 10% of the labor income distribution. Finally, savings reduce when interest rate is more uncertain. This suggests that an insurance policy against interest rate uncertainty would lead to an increase in aggregate capital stock.