Purpose This paper explores the impact of financial stress (FS) on consumer confidence (CC) using survey data. Design/methodology/approach We use novel household-level survey data on CC by the Reserve Bank of India. FS data come from the financial stress index (FSI) released by the Tracking Asian Integration of Asian Development Bank. The sample period is 2015–2023. We align the lagged monthly values of FSI with the household-level data to uncover the impact of FS on household confidence in the economy. Findings Rising FS leads to increased pessimism among households regarding the state of the economy. Educated and well-off households are more sensitive to FS. Moreover, FS significantly impacts confidence regarding households’ own consumption basket and economic scenarios. A disaggregated analysis reveals that FS related to foreign exchange and debt spread causes greater pessimism among households than in the equity market and banking sector. Additionally, the impacts of FS are asymmetric, with above-average FS lowering household attitudes, while below-average FS increases optimism about the economy’s outlook. Originality/value To the best of our knowledge, this study is the first to examine the impact of FS on household CC using household-level data for an emerging economy such as India. Micro-level data allow us to explore the impact of FS on household perceptions of current economic situations and future outlooks. We also uncover the impact of FS on households’ confidence in their own economic outcomes.

Purpose This research examines the relationship between market power and liquidity creation in the specific context of bank profitability in the Vietnamese banking sector. Design/methodology/approach The study applies the methodology proposed by Berger and Bouwman (2009) to demonstrate the creation of bank liquidity through a three-step procedure for investigating the relationship between market power and liquidity creation. The three steps include non-fat liquidity (NFLC), fat liquidity (FLC) and system generalized method of moments estimation for panel data. Findings This study finds that liquidity creation increases when a bank has high market power. Further, highly profitable banks positively impact the market power of banks with regard to liquidity creation, relative to less profitable banks. Moreover, bank size, capital, economic growth and interest rate negatively influence bank liquidity creation, while credit risk positively relates to bank liquidity creation. Research limitations/implications Measurements used in this study are based on the works of Berger and Bouwman (2009). There are specific variations, relative to Basel III. In addition, other variables significantly impact bank liquidity creation that have not been considered in the models, and a quadratic model should have been considered to measure market power and bank liquidity creation. Practical implications This study suggests that managers should control the liquidity of their banks by supervising vulnerable characteristics that have been mentioned herein and emphasizing improvements in profitability. Further, the government may consider encouraging banks to generate more liquidity by modifying regulations concerned with market power or reinforcing policies about improving the transparent business environment. Originality/value This study characterizes an attempt to examine the influence of market power on the liquidity creation of banks in Vietnam, which represents one of the most dynamic systems in Asia, with several varied participating banks. The current study also examines the same within the specific context of the modifying impact of the profitability of banks.

Purpose It has been demonstrated in the US market that expected market excess returns can be predicted using the average higher-order moments of all firms. This study aims to empirically test this theory in emerging markets. Design/methodology/approach Two measures of average higher moments have been used (equal-weighted and value-weighted) along with the market moments to predict subsequent aggregate excess returns using the linear as well as the quantile regression model. Findings The authors report that both equal-weighted skewness and kurtosis significantly predict subsequent market returns in two countries, while value-weighted average skewness and kurtosis are significant in predicting returns in four out of nine sample markets. The results for quantile regression show that the relationship between the risk variable and aggregate returns varies along the spectrum of conditional quantiles. Originality/value This is the first study that investigates the impact of third and fourth higher-order average realized moments on the predictability of subsequent aggregate excess returns in the MSCI Asian emerging stock markets. This study is also the first to analyze the sensitivity of future market returns over various quantiles.

Purpose The purpose of this paper is to extend the literature on the spillovers across economic policy uncertainty (EPU) and cryptocurrency uncertainty indices. Design/methodology/approach This paper uses cross-country economic policy uncertainty indices and the novel data measuring the cryptocurrency price uncertainties over the period 2013–2021 to construct a sample of 946 observations and applies the time-varying parameter vector autoregression (TVP-VAR) model to do an empirical study. Findings The findings suggest that there are cross-country spillovers of economic policy uncertainty. In addition, the total uncertainty spillover between economic policies and cryptocurrency peaked in 2015 before gradually decreasing in the following periods. Concomitantly, the cryptocurrency uncertainty has acted as the “receiver.” More importantly, the authors found the predictive power of economic policy uncertainty to predict the cryptocurrency uncertainty index. This paper’s results hold robust when using alternative measurement of cryptocurrency policy uncertainty. Originality/value This study is the first research that deeply investigates the association between two uncertainty indicators, namely economic policy uncertainty and the cryptocurrency uncertainty index. We provide fresh evidence about the dynamic connectedness between country-level economic policy uncertainty and the cryptocurrency index. Our work contributes a new channel driving the variants of uncertainties in the cryptocurrency market.

Purpose This study aims to compare the purchase intention of counterfeit outdoor products between Taiwan and Hong Kong consumers. Design/methodology/approach A total of 584 respondents from Hong Kong (n = 247, 42%) and Taiwan (n = 337, 58%) were recruited for the study. Data analysis was performed by using structural equation modelling techniques. Findings The results showed that consumers' perceived risk had a negative influence on attitude and intention to purchase counterfeit outdoor products. Moreover, attitude towards buying counterfeit outdoor products, perceived behavioural control and subjective norm had positive impacts on purchase intention. Brand consciousness, however, had a negative influence on purchase intention. The multi-group analysis identified significant differences between Hong Kong and Taiwanese respondents. Originality/value This study provides a better understanding of how these factors affect purchase intention of counterfeit outdoor products across different cultures.