CSG - Research in Social Sciences and Management

Funder

Organizational Unit

Publications

Impacts of COVID-19 on dynamic return and volatility spillovers between rare earth metals and renewable energy stock markets

Publication . Hanif, Waqas; Mensi, Walid; Gubareva, Mariya; Teplova, Tamara

We examine the time-frequency co-movements and return and volatility spillovers between the rare earths and six major renewable energy stocks. We employ the wavelet analysis and the spillover index methodology from January 1, 2018 to May 15, 2020. We report that the COVID-19-triggered significant increase in co-movements and spillovers in returns and volatility between the rare earths and renewable energy returns and volatility. The rare earths act as net recipient of both return and volatility spillovers, while the clean energy stocks are net transmitters of return and volatility spillovers before and during the COVID-19 crisis. The solar and wind stocks are net transmitters/receivers of spillovers before/during the pandemic. The remaining markets shift from net spillover receivers to transmitters or vice versa; evidencing the effects of the pandemic. Our results show that cross-market hedge strategies may have their efficiency impaired during the periods of crises implying a necessity of portfolio rebalancing.

2023-01Journal article

Open access

Are REITS hedge or safe haven against oil price fall?

Publication . Hanif, Waqas; Andraz, Jorge; Gubareva, Mariya; Teplova, Tamara

This paper studies the hedge against falling oil prices and the safe haven properties of fourteen major country-specific real estate investment trusts (REITs) indices for the Asian, American, European, and worldwide geographies. Our analyses are performed from both, returns and conditional volatility perspectives. Our sample spans from January 2016 until August 2022, covering the COVID-19 pandemics and the ongoing Russia-Ukraine military conflict. We find that during COVID-19, only the Japan REITs, in terms of both returns and volatility, act as a hedge for oil whereas the only hedge during the Russia-Ukraine conflict is the Netherland REITs. In addi-tion, we document diverse degrees of safe-haven and diversifiers properties for REITS from diverse geographies along the full sample and the respective sub-samples for both bearish con-ditions and elevated volatility in the oil market. Our results imply that market regulators should focus on controlling volatility in crude oil and REITs markets, especially throughout times of financial distress, as daily return volatility monitoring is a pivotal requirement for optimized investment management. Our study provides important knowledge for investors, policymakers, and market regulators.

2024Journal article

Open access

The relationship between soft skills, stress and reduced audit quality practices

Publication . Samagaio, Antonio; Morais Francisco, Paulo; Felício, Teresa

PurposeThis study aims to identify the effect of soft skills as a driver of audit quality and their moderating role in the relationship between stress and the propensity for auditors to engage in reduced audit quality practices (RAQP).Design/methodology/approachThis study uses a sample of 130 auditors, whose data were collected through an electronic questionnaire. The results were derived from the partial least squares-structural equation modelling method.FindingsThe findings show that the propensity to incur RAQP increases when auditors are under job stressors but decreases when individuals have resilience and time management skills. Moreover, the results suggest that the moderating effect of these two soft skills can effectively reduce the auditors' propensity to engage in dysfunctional actions and judgments in auditing. Emotional intelligence and self-efficacy skills are shown not to affect RAQP.Originality/valueThis study adds to previous research on auditors' drivers for supplying audit quality, by providing evidence of auditor characteristics as a critical input to audit quality. The results emphasize the importance of researchers including in models the moderating effect of soft skills on the relationship between audit quality and determinants associated with audit firms, clients or the regulatory framework.

2024Journal article

Restricted access

The relationship between time pressure, ethical culture and audit quality

Publication . Samagaio, Antonio; Morais Francisco, Paulo; Felício, Teresa; Matos, Pedro Verga

PurposeThis study aims to analyze the effect of time pressure and the ethical culture of audit firms on audit quality expressed through professional skepticism and reduced audit quality practices (RAQP). Furthermore, the study explores the moderating role of ethical culture in the relationship between the remaining variables.Design/methodology/approachThis study uses a sample of 96 auditors, whose data were collected through an electronic questionnaire. The results were derived from the partial least squares-structural equation modeling method and necessity condition analysis.FindingsThe results show that the propensity to incur RAQP increases when auditors are subject to a context of greater time pressure and weak ethical culture. Moreover, ethical culture is positively associated with the auditors' skepticism trait. The study shows that ethical culture is a necessary condition for professional skepticism, and that time pressure is also a factor that must be present for RAQP to occur. We found no evidence that the skeptical trait is influenced by time pressure and that ethical culture moderates the relationship between time pressure and audit quality.Originality/valueThis study reinforces the empirical evidence that the characteristics of audit firms are relevant in improving audit quality. By combining the logics of sufficiency and necessity, it is possible to better understand the causal relationship between audit quality, time pressure and ethical culture, advancing the theorization of the phenomena observed in auditing firms. The findings of this work are equally valuable for regulators and auditing firms to take initiatives to improve their performance in order to reinforce their social function.

2025-05-02Journal article

Restricted access