International Journal of Financial Engineering

GST implementation in India is a macroeconomic event that changed the operating conditions and profitability of businesses. This study attempts to empirically test the market reaction of GST implementation on seventeen sectors of the Indian economy through the event-study methodology. Additionally, we assess the semi-strong efficiency of the Indian stock market during the event. Findings show that the event has heterogeneously affected different sectors as the FMCG sector is positively affected while the Pharmaceutical and Power sectors are adversely affected. IT sector is moderately positively affected whereas, consumer durable, energy, media, metal, oil, and reality are moderately negatively impacted. We also infer that the market doesn’t exhibit thorough efficiency of semi-strong form. The study is unique in its analysis of the sector-wise impact of GST implementation in India. This study is also useful for investors in making investment strategies and for policymakers to observe the policy impact on the stock market.

This paper presents a comprehensive bibliometric analysis aimed at mapping the convergent landscapes of artificial intelligence (AI) and financial technology (Fintech), fields poised for significant disruptive potential in global financial services. Given the rapid integration of AI within financial operations, this research investigates the publication trends, key contributing nations, and prevalent themes within this intersection, crucial for understanding the trajectory of Fintech innovations and their alignment with AI advancements. Employing a robust methodology utilizing VOSviewer and the Scopus database, the analysis distilled insights from 298 selected papers, focusing on co-authorship, bibliographic coupling, and keyword occurrences to highlight the global influential works and primary research hubs. Key findings reveal that AI and Fintech are not only predominant themes but are also the nucleus of emerging scholarly discussions, with the United States, China, and India leading in contributions. These nations, alongside others like France and the United Kingdom, form critical nodes in our analysis, indicating a robust interconnection of global research efforts. This study introduces the novel application of advanced bibliometric techniques to dissect dense academic outputs, offering a granular view of how AI influences financial technologies. The implications of this research are manifold; it provides a strategic blueprint for academics, industry practitioners, and policymakers to understand the focal areas of AI in Fintech, suggesting an amplified focus on collaborative innovations and policy-making that aligns with technological advancements. Future research should expand the analysis to include diverse databases and explore the integration of AI across various financial sectors, emphasizing the socioeconomic impacts, ethical considerations, and regulatory challenges posed by AI-driven financial services. This extended focus will enhance our understanding of AI’s role in shaping the future of Finance, ensuring comprehensive coverage of this dynamically evolving field.

The advent of the metaverse has ushered in a new era of digital interaction, commerce, and finance. As users increasingly immerse themselves in virtual spaces, the need for robust digital identities becomes paramount. This study investigates the intricate interplay of privacy, security, and user authentication within the context of digital identities in the metaverse, with a particular focus on virtual financial systems. Employing a cross-case analysis method within the qualitative research paradigm, the study extensively examines real-world instances to extract valuable insights, identify challenges, and propose potential solutions in navigating this dynamic landscape. This approach allows for a comprehensive examination of overarching patterns and trends across case studies, revealing persistent challenges in digital identity management. The study delves into the complexities of pseudonymity in virtual engagement, emphasizing the crucial balance required for user trust and accountability. Furthermore, it uncovers commonalities in successful implementations, spotlighting the transformative role of blockchain technology, exemplified by IBM Blockchain World Wire, and the growing trend of biometric authentication, as seen in the FIDO use case. The successful cases examined demonstrate that a user-friendly experience and scalability are integral to the adoption of advanced security technologies. Industry leaders should take note of the global trends in digital transactions, emphasizing efficiency, transparency and cross-border security. Additionally, the study offers forward-looking insights with implications for future research and practice, advocating for continued exploration of the nuanced dynamics between user privacy, trust-building mechanisms and accountability in the ever-evolving metaverse landscape.

In the era of globalization of the knowledge economy and significant global population mobility, language serves not only as a tool for acquiring and exchanging information but also as a bridge and conduit for the dissemination and promotion of technology, culture, and knowledge on a global scale. Language can serve as both a tool to acquire other knowledge and skills, forming human capital, and can also be directly used to serve society, bringing about relative economic benefits to both the nation and individuals. The world language, English, with its unique advantages of spanning regions and borders, widely disseminates various technological, cultural, and economic information. With the increasing integration of the global economy and the development of regional economies in China, there is a growing and strong interactive relationship and interdependence between college English education and regional economic development. This paper selects relevant data from Shanghai and Jiangsu Province over the past decade and, through correlation analysis and regression analysis, establishes a significant correlation between colleges English teaching and regional economic development. It proves that college English teaching has become an important factor in promoting sustainable regional economic development. Based on this conclusion, it proposes the concept that colleges of English teaching and regional economic development should support and promote each other, achieving harmonious development and mutual progress.

In this paper, we applied bibliometric methods to analyze the field of self-service technology (SST). Our goal was to identify the most impactful publications and journals, comprehend the key topics studied as well as the emerging trends and forecast future research trends in this domain. The Scopus database was used to extract 490 documents related to SST between 2000 and 2023. Our analyses include the most cited papers, sources of publications, bibliographic coupling, and topic modeling. As the body of literature continues to expand, we identified the most influential source “Journal of Service Marketing” which holds a prominent position in this area. The citation analysis revealed the highly influential papers that have made significant contributions to their respective fields. Notably, Meuter [Meuter, ML, AL Ostrom, RI Roundtree and MJ Bitner (2000). Self-Service Technologies: Understanding Customer Satisfaction with Technology-Based Service Encounters] in the realm of SST emerged as the most frequently cited paper, exerting substantial influence in academic literature. We applied bibliometric coupling in this field, which resulted in the discovery of seven clusters in SST. These clusters shed light on various aspects associated with these topics, offering valuable insights. The findings of this research offer valuable insights to study researchers by bringing clarity to this research field. Finally, the study presents the implications and recommendations for researchers. The findings of this paper offer valuable insights to study researchers by bringing clarity to the fields of the study.

Phishing attacks have emerged as a significant cybersecurity threat, especially within the financial domain, where email serves as a prevalent vector for malicious activities. This project report outlines the development and evaluation of a Chrome browser extension tailored to bolster email security, specifically focusing on detecting and mitigating phishing attempts in financial communications. The study begins with a thorough examination of the techniques and tactics used by phishing attackers in financial email campaigns. A sophisticated awareness of the changing landscape of phishing assaults is required to develop successful defences. The key contribution of this work is the development of a powerful Chrome browser extension that easily integrates with common email services in the financial sector. This extension harnesses a blend of machine learning algorithms, URL analysis, and user-friendly interfaces to identify potentially malicious financial emails. It rigorously scans email content, scrutinizing hyperlinks and attachments for signs of phishing. The extension evaluates URL reputations, checks for typical phishing indicators, and examines email headers. In case any suspicious elements are identified, users receive real-time alerts, enabling them to make informed decisions about the safety of financial emails. To ensure the extension’s accuracy and effectiveness within the financial context, an extensive dataset of real-world phishing emails and legitimate financial messages is employed for training and testing. The report offers a comprehensive analysis of the extension’s performance, emphasizing its capability to detect and prevent phishing attempts in financial emails while minimizing false positives. In addition to its detection capabilities, the extension actively promotes user awareness and education regarding phishing threats within the financial sector. It provides guidance on recognizing phishing red flags and offers educational resources to enhance user security practices. This work concludes with an evaluation of the extension’s usability and its potential impact on enhancing email security within the financial domain. It underscores the critical role of proactive measures, such as this extension, in addressing the evolving threat landscape of phishing attacks in the digital age, particularly within financial communications.

This research paper delves into the intricate world of smart contract derivatives, aiming to unravel the technical intricacies and explore their applications. Smart contract derivatives represent a burgeoning intersection of blockchain technology and financial instruments, providing decentralized and automated solutions for derivative trading. The paper navigates through the complex landscape of smart contract derivatives, addressing both the technical aspects of their implementation and the diverse range of applications they unlock. Through a comprehensive review of existing literature, case studies, and real-world examples, this research aims to provide a holistic understanding of the challenges, opportunities, and implications associated with smart contract derivatives. By comprehensively addressing both the technical intricacies and practical applications of smart contract derivatives, this study contributes valuable insights into the rapidly evolving field of decentralized finance.

The development of cryptocurrencies has altered traditional economic institutions and financial inclusion. This study investigates the complicated relationships between education, digital literacy, cryptocurrency views, and financial inclusion in virtual economies, addressing a key gap in comprehending the disruptive dynamics of emerging financial technologies. Undergraduate, postgraduate, and PhD students from private universities in Delhi NCR were polled using a standardized questionnaire with a 5-point Likert scale. According to the study, higher education boosts digital literacy, cryptocurrency opinions and financial inclusion. Although education is critical for financial inclusion, the link between positive attitudes about cryptocurrencies and financial inclusion remains uncertain. As virtual currencies expand, these results urge policymakers and educators to concentrate on digital literacy and positive attitudes in order to promote inclusive financial ecosystems.

The “Financial Engineering” has revolutionized the financial industry by integrating mathematics, finance, economics, statistics, and computational tools to solve complex problems like risk management and portfolio optimization. This interdisciplinary approach has given rise to “AI in Finance”, merging the quantitative techniques of financial engineering with AI’s data-driven capabilities. In this survey, we explore concrete examples of their real-world impact. One such example involves a leading investment firm using machine learning algorithms to analyze market sentiments for informed trading decisions, resulting in significant returns. Additionally, AI-driven credit scoring models are expanding financial access by accurately assessing creditworthiness, especially for underserved populations. Natural language processing algorithms are also employed to parse financial news and social media data, providing investors with timely insights to navigate volatile markets effectively. These advancements highlight the transformative potential of financial engineering and AI in finance. By optimizing investment strategies and mitigating risks, they drive innovation and resilience in today’s dynamic financial landscape. From algorithmic trading to credit risk assessment and market sentiment analysis, the fusion of these disciplines is reshaping traditional paradigms and shaping the future of finance.

Bitcoin has received a lot of attention from both investors and analysts, as it forms the highest market capitalization in the cryptocurrency market. The use of parametric GARCH models to characterize the volatility of Bitcoin returns is widely observed in the empirical literature. In this paper, we consider an alternative approach involving nonparametric method to model and forecast Bitcoin return volatility. We show that the out-of-sample volatility forecast of the nonparametric GARCH model yields superior performance relative to an extensive class of parametric GARCH models. The improvement in forecasting accuracy of Bitcoin return volatility based on the nonparametric GARCH model suggests that this method offers an attractive and viable alternative to the commonly used parametric GARCH models.

The purpose of the banking sector in the country is to provide banking services to all the people with a simple and easy manner with this view, PMJDY was introduced in 2014 to provide bank account to unbanked people free of cost and with simplification of KYC norms. All the incentives and monetary benefits to the targeted people will reach only through direct benefit transfer scheme which is linked with bank account and Aadhar. Banks also concentrate on urban and unbanked areas through single window banking and post office savings bank scheme. With this view, payment banks play a key role in banking penetration in the country. This paper made an attempt to discuss performance of payment banks with respect to financial performance.

The aim of this study is to investigate the dynamic of price discovery for cross-listed stocks using high-frequency intraday data. We show that the local market leads price discovery process with a significant contribution of the foreign US market. Moreover, we find that arbitrage opportunities enhance market liquidity of cross-listed firms, and vice versa. A higher US market contribution to price discovery provides an increase in the local trading volume as well as in arbitrage opportunities frequency. This latter leads to greater local market contribution to price discovery confirming the information-based transactions in the domestic markets of US cross-listed firms.

Ever since the incorporation of Unit Trust of India in 1964, the mutual fund industry has developed quickly and gained a lot of recognition. In all of the world’s capital markets, mutual funds have developed as a significant avenue of investment. Mutual funds have played, and therefore will continue to play, a critical part in India’s capital market development. A few of the grounds for mutual funds’ rapid popularity is that they combine low risk with income security, making them perfect for median and smaller investors who would otherwise be unable to participate in the stock market. The investors are finding it as a proper field to invest and earn, amidst the risk involved in it. Thereby, the determinants for an investor that influences him to make investment will vary between them and further, investing in mutual funds over other financial products may appeal to investors for a variety of reasons. This research may look into the elements that influence investors’ decisions to invest in mutual funds.

Nonperforming Assets (NPA) are the major problem for today’s Banking Industry, and it is being beheld that they are growing with time. So, through this study, the variables that lead to NPA are found. For the study, both bank-specific and macroeconomic variables are taken, to see whether the bank-specific too formulate an effect on NPA or they came out to be insignificant. The variables that lead to NPA are Management Efficiency, Asset Management, GDP, REER, NEER, Inflation, Unemployment and Real Interest Rate. The research for banks’ profitability to see if the same variables lead to NPA, moreover, influence profitability, but the result came out to be that there is only Asset Management, which impacts both. In the end, equity exploration on the four significant variables is conducted, to determine which bank has underperformed or overperformed on which variable.

Cryptocurrency is a digital currency designed for use in transactions just like regular money. To safeguard its exchanges, restrict the development of a specific kind of cryptocurrency, and keep track of each and every transaction across the entire network, it uses blockchain and cryptography. Even after a decade of existence, cryptocurrency has not established a reputation as a new age currency system among the majority of countries in the world, and people are still dubious about its value despite being loaded with numerous cutting-edge technologies and having a sizable market presence everywhere. Cryptocurrencies have been around for almost 10 years, but it is still unclear whether they will ever become a real currency or if they will stay a component of investment portfolios. Since Odisha is a backward state, a study has been done to determine the level of awareness and perception of cryptocurrencies in its cities.

In this paper, we examine a public debt stabilization in a country under inflation targeting by arguing that bond yields are sensitive to inflation risks. Endogenously defining the convenience premium function, we focus on fiscal and monetary strategic interactions within an optimal control setting. The level of the debt-to-gross domestic produced (GDP) ratio and current inflation rate of the country are considered as the state variables in the game. We then focus on the convenience risk premium and rate of inflation as market-based disciplining devices, to articulate the Nash noncooperative equilibria, cooperative equilibria and Stackelberg equilibria via a feedback control strategy. We show that the outcome of the game depends on the parameters of the game, the type of equilibrium one considers and the decision horizon. When the current inflation rate follows an uncontrolled Ornstein–Uhlenbeck dynamic process, we highlight its effects on the growth rate of the debt ratio. Hence, our model provides a novel framework in which monetary and fiscal authorities can simultaneously achieve their individual interests, while achieving an optimal debt stabilization policy in the presence of inflation. We also highlight the need for governments to adopt policy-approaches which maintain the debt-to-GDP ratio under an inflation-dependent ceiling.