All articles published by MDPI are made immediately available worldwide under an open access license. No special permission is required to reuse all or part of the article published by MDPI, including figures and tables. For articles published under an open access Creative Common CC BY license, any part of the article may be reused without permission provided that the original article is clearly cited. For more information, please refer to https://www.mdpi.com/openaccess.
Feature papers represent the most advanced research with significant potential for high impact in the field. A Feature Paper should be a substantial original Article that involves several techniques or approaches, provides an outlook for future research directions and describes possible research applications.
Feature papers are submitted upon individual invitation or recommendation by the scientific editors and must receive positive feedback from the reviewers.
Editor’s Choice articles are based on recommendations by the scientific editors of MDPI journals from around the world. Editors select a small number of articles recently published in the journal that they believe will be particularly interesting to readers, or important in the respective research area. The aim is to provide a snapshot of some of the most exciting work published in the various research areas of the journal.
Original Submission Date Received: .
- Journals
-
- Active Journals
- Find a Journal
- Proceedings Series
-
- Topics
- Information
-
- For Authors
- For Reviewers
- For Editors
- For Librarians
- For Publishers
- For Societies
- For Conference Organizers
- Open Access Policy
- Institutional Open Access Program
- Special Issues Guidelines
- Editorial Process
- Research and Publication Ethics
- Article Processing Charges
- Awards
- Testimonials
-
- Author Services
- Initiatives
-
- Sciforum
- MDPI Books
- Preprints.org
- Scilit
- SciProfiles
- Encyclopedia
- JAMS
- Proceedings Series
-
- About
-
- Overview
- Contact
- Careers
- News
- Press
- Blog
-
Sign In / Sign Up Submit
Submit to IJFS Review for IJFS Propose a Special Issue
Journal Menu
► Journal Menu
-
- IJFS Home
- Editorial Board
- Instructions for Authors
- Special Issues
- Topics
- Topical Collections
- Article Processing Charge
- Editor’s Choice Articles
- Journal Statistics
- Journal History
- Journal Awards
- Editorial Office
Journal Browser
► Journal Browser
- arrow_forward_ios Forthcoming issue
arrow_forward_ios Current issue - Vol.12(2024)
- Vol.11(2023)
- Vol.10(2022)
- Vol.9(2021)
- Vol.8(2020)
- Vol.7(2019)
- Vol.6(2018)
- Vol.5(2017)
- Vol.4(2016)
- Vol.3(2015)
- Vol.2(2014)
- Vol.1(2013)
announcement
Need Help?
Support
Find support for a specific problem in the support section of our website.
Get Support
Feedback
Please let us know what you think of our products and services.
Give Feedback
Information
Visit our dedicated information section to learn more about MDPI.
Get Information
A special issue of International Journal of Financial Studies (ISSN 2227-7072).
Deadline for manuscript submissions: closed (31 March 2018) | Viewed by 71830
Share This Special Issue
Special Issue Editors
School of Finance and Management, SOAS University of London, London WC1H 0XG, UK
Interests: financial economics; comparative financial systems; firm investment decisions under uncertainty; capital market imperfections; corporate finance; corporate governance; the Chinese financial system and the Chinese economy
Special Issues, Collections and Topics in MDPI journals
Ad Personam Jean Monnet Professor for Macroeconomics, Department of Economics, University of Duisburg-Essen, D-45117 Essen, Germany
Interests: international macroeconomics; monetary economics; economic integration; applied econometrics
Special Issue Information
Dear Colleagues,
On 23June 2016,Britainvoted to leave theEU, andthe Brexit negotiations between the UK and the EU are currently ongoing.
Participantsin the global financial marketsarefacinggreatuncertainty aboutwhatimpactBrexitwillhave on theEuropeanfinancial systemandparticularly, the UK financial services sector anditscapitalmarkets. Ithas beenarguedthat Brexit will result in lossesof business for the UK-based financial firms, reductionof the human capital pool for theUKfinancialservices sector, loss of competitiveness of the City of London as an international financialcentre,and foreseeable higher costs ofdoingbusiness forboth UKandEuropean financial firms due to amendmentsof regulationsand the construction ofnewfinancial infrastructures within the EU.
However, Brexit mayalsoprovide newopportunitiesto the UK financialsector.For example, leaving the EU may setthe UKfinancialsector free to establishbusinesswith other marketsoutsidetheEU, such as theUS,the Middle East, andAsianemergingmarkets, which mayreinforcethe importanceof theUKfinancial service sectorinthe global financial system.
Overall,there areuncertaintiessurrounding what the new relationship between theUKand the EUwilllook likeafterBrexit.Brexitnot onlychallenges practitioners, but alsobrings about manyacademicquestions, whichinclude, forexample:
(1)Giventhat theUK isthe mostrepresentative market-orientatedfinancialsystem in the EU,whilst the EU is, in general, a banking-orientatedone, howwill the EU developits capital marketswithoutthe participation of the UK financial sector?
(2) What will be thechanges inthe models of risk managementfor banks, funds, insurancecompanies,and otherasset management firms afterBrexitin both the UK and the EU?
(3) How dodifferentelements of the financial systemin both the UKand theEUrespond to events relatedtoBrexit?These elements includethe stock market, thebond market,the derivatives market, the foreign exchange market, and the real estate market, etc.
(4) What are therelocation patterns ofcorporate headquartersof firms in the financial sector from theUKto the EU countries and tothe rest of the world, and vice versa?
(5) How does the labour marketre-adjustit*elfin response to the changes inthedemand andthesupply of talents in the financial sector inboth the UK and the EU, including the pay for executives and employees?
This Special Issue will provide a goodopportunityfor researchersin financial economics to examinequestions related to the above-mentioned areas.In addition, studies onother subtopics that are relevant toBrexitand its impact on financial systemswillalsobe considered.
Dr. Hong Bo
Prof. Dr. Ansgar Belke
Guest Editors
Manuscript Submission Information
Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.
Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. International Journal of Financial Studies is an international peer-reviewed open access quarterly journal published by MDPI.
Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 1800 CHF (Swiss Francs).Submitted papers should be well formatted and use good English. Authors may use MDPI'sEnglish editing service prior to publication or during author revisions.
Keywords
- Brexit
- financial system
- capital market
- risk management
- financial services
- event study
- relocation of corporate headquarters
Benefits of Publishing in a Special Issue
- Ease of navigation: Grouping papers by topic helps scholars navigate broad scope journals more efficiently.
- Greater discoverability: Special Issues support the reach and impact of scientific research. Articles in Special Issues are more discoverable and cited more frequently.
- Expansion of research network: Special Issues facilitate connections among authors, fostering scientific collaborations.
- External promotion: Articles in Special Issues are often promoted through the journal's social media, increasing their visibility.
- e-Book format: Special Issues with more than 10 articles can be published as dedicated e-books, ensuring wide and rapid dissemination.
Further information on MDPI's Special Issue polices can be found here.
9 pages, 194 KiB
Open AccessArticle
The Impact of Brexit on Financial Markets—Taking Stock
by Michaela Hohlmeier and Christian Fahrholz
Int. J. Financial Stud. 2018, 6(3), 65; https://doi.org/10.3390/ijfs6030065 - 16 Jul 2018
Cited by 10 |Viewed by 16748
Abstract
The UK’s withdrawal from the EU will have far-reaching consequences on the European economy. However, the ultimate consequences of Brexit, especially for financial markets, depend on the final agreement, which is still under negotiation. Currently, regulated financial services can be provided across borders [...] Read more.
The UK’s withdrawal from the EU will have far-reaching consequences on the European economy. However, the ultimate consequences of Brexit, especially for financial markets, depend on the final agreement, which is still under negotiation. Currently, regulated financial services can be provided across borders under simplified conditions. Without a special agreement, these EU passports cease to apply for business activities between both jurisdictions after Brexit. The EU third-country regimes for non-EEA companies are too few and too unsecure for intensive relations in trade and services. Knowing that London is the leading global financial center, an adequate agreement needs to be found, to ensure affordable and sufficient financial services for business, investors, and consumers. Unfortunately, it appears almost impossible to find solutions for the often contrary interests and various thematic areas in the remaining negotiating period—a no deal scenario becomes more likely. As a result, market participants have started to adapt structures and processes accordingly, by relocating certain functions to the EU27. Nevertheless, it is up to the negotiators to reach an agreement, which achieves the best possible outcome for all affected parties taking into account the opportunity costs of a failure in present Brexit negotiations. Full article
(This article belongs to the Special Issue Impact of Brexit on Financial Markets)
12 pages, 2784 KiB
Open AccessArticle
Performance of Exchange Traded Funds during the Brexit Referendum: An Event Study
by Akram Alkhatib and Murad Harasheh
Int. J. Financial Stud. 2018, 6(3), 64; https://doi.org/10.3390/ijfs6030064 - 13 Jul 2018
Cited by 12 |Viewed by 5923
Abstract
In today’s interrelated economies, financial information travel at speed of light to reach investors around the globe. Global financial markets experience regular shocks that transmit negative waves to other equity markets and different asset classes. Given the unique characteristics of exchange-traded funds (ETFs), [...] Read more.
In today’s interrelated economies, financial information travel at speed of light to reach investors around the globe. Global financial markets experience regular shocks that transmit negative waves to other equity markets and different asset classes. Given the unique characteristics of exchange-traded funds (ETFs), this paper examines how different ETFs that are traded on London Financial center reacted to the Brexit event in 23 June 2016. The unexpected referendum result the day after is viewed as the next significant financial event since 2008. The paper employs an event study market model on daily and abnormal returns of the selected ETFs with respect to FTSE 250 around the event date. Contrary to what is expected, the world equities fund experienced significant positive abnormal return on the event day. Emerging markets again proved to be a preferred investment destination in times of financial turmoil; the emerging equities fund gained 3% while enjoying an 11.5% positive significant abnormal returns. The US T-Bond fund recorded a 9% return with a significant 7.2% abnormal return. The gold fund soared as much as 4% as investors seeks refuge from Brexit, and the oil fund retraced 1% amid concerns of slowing global demand. Full article
(This article belongs to the Special Issue Impact of Brexit on Financial Markets)
► Show Figures
Figure 1
---
Figure 3
---
Figure 4
---
Figure 5
---
Figure 6
---
Figure 7
---
Figure 8
19 pages, 960 KiB
Open AccessArticle
The Impact of Brexit on the Stock Markets of the Greater China Region
by Lucía Morales and Bernadette Andreosso-O’Callaghan
Int. J. Financial Stud. 2018, 6(2), 51; https://doi.org/10.3390/ijfs6020051 - 10 May 2018
Cited by 3 |Viewed by 5529
Abstract
An examination of Brexit and its initial impact on the main stock markets in the Greater China Region (GCR) was conducted using augmented market models that integrate Economic Policy Uncertainty (EPU) and implied volatility (VIX). The results do not seem to align with [...] Read more.
An examination of Brexit and its initial impact on the main stock markets in the Greater China Region (GCR) was conducted using augmented market models that integrate Economic Policy Uncertainty (EPU) and implied volatility (VIX). The results do not seem to align with research in the field that has suggested that the EPU index helps to identify if market participants are reacting to political events. The main research findings suggest that Brexit does not appear to have an impact on the performance of market returns in the region and the influence of economic policy uncertainty in the GCR appears to be insignificant, except for Hong Kong. Overall, China’s stock markets do not seem to be panicking and overreacting to unfolding events in the UK, and market instability in the region appears to be more associated with global and regional events that are better captured by the VIX index. Full article
(This article belongs to the Special Issue Impact of Brexit on Financial Markets)
► Show Figures
Figure A1
---
Figure A3
21 pages, 2079 KiB
Open AccessArticle
BREXIT and Foreign Direct Investment: Key Issues and New Empirical Findings
by Paul J. J. Welfens and Fabian J. Baier
Int. J. Financial Stud. 2018, 6(2), 46; https://doi.org/10.3390/ijfs6020046 - 24 Apr 2018
Cited by 27 |Viewed by 16602
Abstract
This contribution takes a new look at the gravity equation model in relation to foreign direct investment (FDI) of leading industrialized countries which presents a useful basis for assessing certain potential impacts arising from BREXIT—the envisaged leaving of the EU by the United [...] Read more.
This contribution takes a new look at the gravity equation model in relation to foreign direct investment (FDI) of leading industrialized countries which presents a useful basis for assessing certain potential impacts arising from BREXIT—the envisaged leaving of the EU by the United Kingdom. The gravity equation estimated subsequently allows one to consider the case of BREXIT and the broader role of EU membership and other variables. Looking at the period from 1985 to 2012 for a dataset which contains 34 OECD (Organisation for Economic Co-operation and Development) countries, Pseudo Poisson Maximum Likelihood (PPML) dyadic fixed estimations take into account a broad set of approaches and variables. Besides the traditional variables of the EU/EU single-market membership of the source country and of the host country, we further consider the role of trade openness as well as corporate tax rates and the ratio of inward FDI stock to total capital stock. The analysis shows that trade openness is a variable which can be largely replaced by the inward FDI stock/capital stock ratio so that gravity FDI modeling with a strong emphasis on trade openness is likely to overstate the role of trade and to understate the role of relative FDI accumulation effects. The implication for BREXIT analysis is that the UK will face three impulses for FDI inflows: (1) leaving the EU single market will strongly reduce FDI inflows; (2) if foreign ownership in UK capital stock should strongly increase in the run-up to the BREXIT year 2019, part of the dampening effects of leaving the EU will be mitigated by the increase of the FDI stock/capital stock ratio, which in turn is likely to reflect a Froot–Stein effect related to real pound depreciation for 2016–2018; (3) to the extent that the UK government will want to reinforce output growth through higher FDI inflows, a reduction of corporate taxation could generate high effects but could also stimulate a downward international corporate tax reduction game. Full article
(This article belongs to the Special Issue Impact of Brexit on Financial Markets)
► Show Figures
Figure 1
---
Figure A2
---
Figure A3
9 pages, 1558 KiB
Open AccessArticle
Brexit and Uncertainty in Financial Markets
by Guglielmo Maria Caporale, Luis Gil-Alana and Tommaso Trani
Int. J. Financial Stud. 2018, 6(1), 21; https://doi.org/10.3390/ijfs6010021 - 11 Feb 2018
Cited by 13 |Viewed by 8464
Abstract
This paper applies long-memory techniques (both parametric and semi-parametric) to examine whether Brexit has led to any significant changes in the degree of persistence of the FTSE (Financial Times Stock Index) 100 Implied Volatility Index (IVI) and of the British pound’s implied volatilities [...] Read more.
This paper applies long-memory techniques (both parametric and semi-parametric) to examine whether Brexit has led to any significant changes in the degree of persistence of the FTSE (Financial Times Stock Index) 100 Implied Volatility Index (IVI) and of the British pound’s implied volatilities (IVs) vis-à-vis the main currencies traded in the FOREX (foreign exchange market), namely the euro, the US dollar and the Japanese yen. We split the sample to compare the stochastic properties of the series under investigation before and after the Brexit referendum, and find an increase in the degree of persistence in all cases except for the British pound-yen IV, whose persistence has declined after Brexit. These findings highlight the importance of completing swiftly the negotiations with the European Union (EU) to achieve an appropriate Brexit deal. Full article
(This article belongs to the Special Issue Impact of Brexit on Financial Markets)
► Show Figures
Figure 1
---
Figure 3
