This paper provides direct evidence of leverage-induced fire sales leading to a major stock market crash. Our analysis uses proprietary account-level trading data for brokerage- and shadow-financed margin accounts during the Chinese stock market crash in the summer of 2015. We find that margin...

An exponentially increasing trend of players’ registration price has taken place recently, and we test the hypothesis that this may be a speculative bubble, using a structural break test on a dataset of international soccer players registration prices, from 2007 to 2019. Our statistical...

Satoshi Nakamoto proposed in 2008, a peer-to-peer payment system, Bitcoin, outside of government or central bank intervention, government mismanagement or economic conditions. What the current pandemic has shown, is that even Bitcoin is not immune to the effects of COVID-19, for as the pandemic...

This chapter introduces the digital finance cluster in Bulgaria and analyses how it performs against the Four Fundamentals introduced in Breznitz (2021). The Fintech sector in Bulgaria traces its origins in the Communist Era, with the first applications of digital financial technologies aiming...

This paper shows that the eurozone payment system does not effectively protect member states from speculative attacks. Suspicion of a departure from the common currency induces a terminal outflow of central bank money in weaker member states. TARGET2 cannot inhibit this drain but only protects...

This paper features an analysis of cryptocurrencies and the impact of the COVID-19 pandemic on their effectiveness as a portfolio diversification tool and explores the correlations between the continuously compounded returns on Bitcoin, Ethereum and the S&P500 Index using a variety of parametric...

This paper analyses herding in cryptocurrency markets in the time of the COVID-19 pandemic. We employ a combination of quantitative methods to hourly prices of the four most traded cryptocurrency markets - USD, EUR, JPY and KRW - for the period from 1st January 2019 to 13th March 2020. While...

This paper adopts a versatile multivariate conditional correlation model to estimate daily seasonality in the returns, the volatility, and the correlations between stocks, bonds, gold and Bitcoin. Besides the well known seasonality in stocks and bonds, the day-of-the-week effect is also present...

Purpose – This study investigates the role of cryptocurrencies in enhancing the performance of portfolios constructed from traditional asset classes. Using a long sample period covering not only the large value increases but also the dramatic declines during the beginning of 2018, the study...