Authors: Augustinos Dimitras, George Peppas

Title: GDP growth, Corruption Perception Index and Government Reliability

Abstract

This paper examines the relationship between two critical factors, the Corruption Perception Index (CPI) and Government Reliability, and their influence on Gross Domestic Product (GDP) growth. Corruption and government effectiveness are essential elements in economic development, and understanding their impact on GDP growth can provide valuable insights for policymakers and researchers. Using empirical data and statistical analysis, we investigate how CPI and Government Reliability affect a country's economic performance. The findings suggest that lower corruption levels and greater government reliability are associated with higher GDP growth rates.

Introduction

Economic growth is a central objective for nations worldwide, as it contributes to improved living standards, increased employment opportunities, and overall prosperity. However, achieving sustained economic growth is a complex task that depends on various factors, including institutional quality and governance. Two key elements influencing economic growth are the Corruption Perception Index (CPI) and Government Reliability. Corruption can hinder economic development by distorting market mechanisms, discouraging foreign investments, and reducing public trust in government institutions. Government reliability, on the other hand, is essential for creating a stable and conducive environment for economic activities.
Literature Review

2.1 Corruption Perception Index (CPI)
The CPI, developed by Transparency International, measures the perceived level of corruption in a country's public sector. Numerous studies have shown a negative correlation between a high CPI score (indicating low corruption) and economic growth (Mauro, 1995; Treisman, 2000). Lower corruption levels can enhance investor confidence, promote fair competition, and reduce transaction costs, all of which are conducive to economic growth.
2.2 Government Reliability
Government reliability encompasses various aspects, such as the rule of law, political stability, and the effectiveness of government institutions. A reliable government is more likely to provide public services efficiently, enforce contracts, and protect property rights, fostering a favorable environment for investment and economic growth (Kaufmann et al., 2010; Knack and Keefer, 1995). Research suggests that strong institutions and governance positively affect GDP growth rates (Acemoglu et al., 2001).

Methodology

To investigate the impact of the CPI and Government Reliability on GDP growth, we employ a panel data analysis covering a sample of countries over a specified time period. We use econometric models. Our empirical analysis reveals a significant and positive relationship between lower CPI scores (indicating lower corruption) and higher GDP growth rates. This finding is consistent with previous research (Mauro, 1995; Treisman, 2000). Similarly, greater Government Reliability is associated with higher GDP growth rates, highlighting the importance of institutional quality and governance for economic development. The results of our analysis underscore the critical role that reducing corruption and enhancing government reliability play in promoting economic growth. Policymakers should prioritize anti-corruption measures and strengthen government institutions to create a conducive environment for investment and economic activity. Additionally, international organizations and donors can play a role in supporting these efforts through capacity-building and technical assistance.
Conclusion

This paper has explored the relationship between the Corruption Perception Index and Government Reliability and their impact on GDP growth. The findings suggest that countries with lower levels of corruption and more reliable governments tend to experience higher economic growth rates. Recognizing the importance of these factors, policymakers should focus on improving governance, transparency, and the rule of law to foster economic development.

References:
Mauro, P. (1995). Corruption and Growth. The Quarterly Journal of Economics, 110(3), 681-712.
Treisman, D. (2000). The Causes of Corruption: A Cross-National Study. Journal of Public Economics, 76(3), 399-457.
Kaufmann, D., Kraay, A., & Mastruzzi, M. (2010). The Worldwide Governance Indicators: Methodology and Analytical Issues. World Bank Policy Research Working Paper, (5430).
Knack, S., & Keefer, P. (1995). Institutions and Economic Performance: Cross-Country Tests Using Alternative Institutional Measures. Economics and Politics, 7(3), 207-227.
Acemoglu, D., Johnson, S., & Robinson, J. A. (2001). The Colonial Origins of Comparative Development: An Empirical Investigation. The American Economic Review, 91(5), 1369-1401.

Authors: Andreas Andrikopoulos, Andrianos Tsekrekos

Title: A put spread on social impact: a valuation formula for pay-for-success contracts

Abstract

Pay-for-success contracts are social and financial innovations in social policy and capital markets, respectively. This paper argues that they exhibit option-like payoffs and implements standard option-pricing arguments in assessing the value of investing in pay-for-success contracts. Sensitivities vis-à-vis contract specifications are reflected in the valuation formula and help reach investment and social policy decisions.

Authors: Prokopis Theodoridis, Theofanis Zacharatos, Vasiliki Boukouvala

Title: Understanding Household Food Waste in Greece

Abstract

This study seeks to investigate household food waste and consumer behavior in Greece. Extensive international research has delved into the causes of food waste, with households identified as the primary contributors to food waste in developed nations. This study primarily examines Greek consumers' awareness levels regarding food waste and their associated behaviors. Additionally, it explores the possibility of discerning distinct consumer profiles based on these behaviors. A nationwide survey was conducted in Greece, distributing a structured questionnaire using the snowball method to gather responses from 1238 participants. Common descriptive statistics were employed to outline respondent profiles, and a non-hierarchical K-means cluster analysis was performed. The findings reveal that Greek consumers exhibit a high level of awareness regarding the issue of food waste. Furthermore, changes in "best before" and "due date" labeling, along with improved meal planning, are recommended to reduce the amount of discarded food. The cluster analysis identifies four distinct consumer types, characterized by notable differences among them.

Authors: Panagiota Dionysopoulou, Evangelia Kasimati, Aikaterini Maniati

Title: The phenomenon of climate change and its effects on Greek tourism. The integration of climate change measures based on the UN's Sustainable Development Goals (SDGs)"

Abstract

The phenomenon of climate change and its effects on Greek tourism. The integration of climate change measures based on the UN's sustainable development goals (Sustainable Development Goals)The purpose of this study is to investigate the phenomenon of climate change and in particular its effects on Greek tourism. Emphasis is placed on considering the integration of climate change measures based on the UN Sustainable Development Goal (SDG).This research aims to examine the views of workers in the tourism sector, on the island of Mykonos, regarding the phenomenon of climate change, its effects on Greek tourism and the integration of the UN's 17 measures of sustainable development. The research methodology is quantitative with the use of a standardized questionnaire. 60 valid questionnaires were collected while the statistical tool SPSS 23 was used to analyze the results.The findings reveal that climate change affects many areas of our daily life but especially Greek tourism and the preferences of tourists to choose an accommodation in Greece. Tourist accommodation workers are aware of the large and multifaceted effects of climate change on tourism and consider their environmental certification, the adoption of alternative structures/activities and the implementation of the 17 measures to deal with it very important.In order to prevent and deal with climate change, it is necessary to integrate and adopt the UN's 17 measures of sustainable development by all tourist accommodation and hotels in Greece for the sustainable development and protection of the tourism sector.

Authors: Zacharias Dermatis, Christos Papageorgiou, Dimitrios Komninos, Athanasios Anastasiou

Title: A final assessment for “Europe 2020” Strategy

Abstract

For the current study, eight indicators corresponding to the targets of “Europe 2020” Strategy were used to estimate the deviation of European Union from its final targets. The study showed that: i) The distance to the employment target of 75 % of people aged 20-64 years has narrowed, but there was a small deviation from the target during the last year, probably due to the Covid-19 pandemic. ii) The expenditure for R&D as a percentage of GDP are still well below the target of 3%. iii) The reduction of greenhouse gas emissions in ESD sectors by 20 % compared to 1990 levels are still below the target, but with significant improvement during 2020. iv) The increase of the share of renewable energy in final consumption to 20 % reached its target during 2020. v) The move towards a 20% increase in energy efficiency reached its target during 2020. vi) The reduction of school drop-out rates to less than 10 % reached its target during 2020. vii) The share of population aged 30-34 having completed tertiary education to at least 40 % reached its target during 2019. viii) The lifting at least 20 million people out of risk of poverty was not achieved, although it approaches the final target during 2019, but probably due to the Covid-19 pandemic there was a small deviation from the target during the last year.

Keywords:

“Europe 2020” Strategy, smart growth, sustainable growth, inclusive growth

Authors: Virginia Sotiropoulou, Dimitris Tzelepis

Title: Litigation risk and cash holdings: Textual analysis of U.S. annual disclosures

Abstract

This paper attempts to examine the impact of litigious risk, as it is revealed in firms’ annual disclosures, on corporate financial policy. The main research question is whether managers hoard cash or decrease the amount of cash when the company faces legal risk.

Therefore, this paper attempts to link a major source of corporate risk (litigation risk) with one of the main decisions that managers have to take about the company’s financial strategy, the level of cash holdings. As a proxy of legal risk, litigious words that are included in annual reports are used. This index is measured with textual analysis and in specific, with the adoption of dictionary method introduced by Loughran and McDonald (2011). Thus, the impact of litigation risk on cash holdings strategy is examined under the spectrum of textual analysis, adopting an alternative measure of litigation risk that it has not been used in the relevant literature until now. The results of textual analysis are combined with financial data of U.S. firms. The findings of this study indicate that when litigation risk is increased, the level of firm’s cash holdings decreases.

Keywords: litigation risk, cash holdings, textual analysis

JEL classification codes: M41, G30

Authors: Antonios Persakis, Ioannis Tsakalos, Vasileios Gkonis

Title: The effect of climate policy uncertainty on environmental degradation: Does democracy and globalization matters? Evidence from heavy and light emitters worldwide

Abstract

The objective of this research is to examine the correlation between uncertainty in climate policy, degradation of the environment, and the potential moderating influences of democracy and globalisation among both heavy and light emitters on a worldwide level. The phenomenon of climate change presents a significant peril to the Earth, necessitating the implementation of collaborative measures among nations in order to alleviate its impacts. Nevertheless, the efficacy of climate policies in mitigating environmental degradation could be impacted by a multitude of political and economic variables. This study utilises a comprehensive dataset consisting of 129 countries with varying levels of emissions, covering the period from 1996 to 2022. Advanced econometric techniques are employed to investigate the influence of uncertainty in climate policy on environmental degradation. Furthermore, we investigate the impact of democracy and globalisation on this association. The results of our study indicate a strong correlation between the presence of uncertainty in climate policy and reduced levels of environmental degradation, particularly in countries with high levels of emissions. Furthermore, the findings suggest that countries with democratic systems are inclined to adopt a proactive stance in addressing environmental degradation, particularly when faced with policy uncertainty. Nevertheless, the effects of globalisation are multifaceted, encompassing both advantageous and detrimental outcomes that vary depending on the particular circumstances. The study underscores the significance of implementing consistent and foreseeable climate policies as a means of effectively tackling global environmental issues. Furthermore, it highlights the significance of democratic governance in promoting environmentally conscientious policies. The intricate interaction between globalisation and environmental outcomes underscores the necessity for customised policy solutions that take into account the distinct circumstances of individual nations. The aforementioned discoveries make a valuable contribution to the ongoing academic discussion surrounding climate policy and environmental sustainability. They provide valuable insights into the significance of political and economic factors in influencing the direction of global environmental initiatives. This research can serve as a valuable resource for policymakers and stakeholders seeking to develop effective strategies to address global environmental degradation and promote climate change mitigation efforts on a global scale.

Authors: Antonios Persakis, Georgios Kolias, Panayiotis Tzeremes, Efstratios Kypriotelis

Title: How pandemic uncertainty mediate the relationship between religiosity, spirituality and firm performance? A worldwide evidence

Abstract

Religion and spirituality have long been intrinsic components of human societies, exerting considerable influence over individuals' value systems, attitudes, and actions. Furthermore, the COVID-19 pandemic has had a significant impact on economies worldwide, presenting distinct challenges to businesses operating in diverse sectors. In the midst of prevailing uncertainty, there has been a notable scholarly inclination towards comprehending the impact of religiosity and spirituality on the performance of firms in times of uncertainty. Hence, by employing a comprehensive dataset comprising 56,442 publicly listed companies across 58 nations and encompassing the time span from 1996 to 2022 and using a correlated random effects model (CRE), we present empirical evidence that highlights the substantial and favourable influence of religiosity and spirituality on the financial performance of firms situated in middle-income and low-income economies. Nevertheless, a negative correlation is observed between religiosity and spirituality in countries with high income levels. This study additionally demonstrates that the impacts of religiosity and spirituality are deteriorated in times of pandemic uncertainties. Through a comprehensive examination of the intricate relationship among these variables, the primary objective of this study is to provide significant and meaningful perspectives for leaders in the business sector, policymakers, and the academic community. The aim is to enable these stakeholders to make well-informed decisions and adopt effective strategies that foster resilience and facilitate achievement in times characterised by volatility and uncertainty.

Authors: Eirini Triarchi, Vanessa Zarra, Kostas Karamanis

Title: Measuring job satisfaction: Evidence from the Greek private sector

Abstract

The impact of job satisfaction on employees' physical and mental well-being and job-related behaviours like productivity, absenteeism and turnover makes measuring job satisfaction a significant task for a researcher. The study aims to identify the level and main drivers of job satisfaction of private sector employees in Greece. For this purpose, the paper's analysis presents the literature's critical instruments for measuring job satisfaction. Further, a quantitative survey was conducted using the Minnesota Satisfaction Questionnaire (MSQ), and the results were analysed using descriptive statistics. Convenient sampling was used, and 148 questionnaires were filled from private sector employees. The study's findings suggest that employees in the Greek private sector are marginally satisfied with their jobs, and the intrinsic factors of ability utilisation, independence, and social status, along with the extrinsic factors of working conditions and co-workers, influence most of their job satisfaction. The analysis provides evidence that intrinsic factors are more influential on overall job satisfaction than extrinsic ones. Finally, employees' educational attainment emerges as a determinant of job satisfaction in the private businesses of the Greek labour market.

Authors: Olga Chara Pavlopoulou, Leonidas Doukakis, Afroditi Papadaki

Title: The market informativeness of analyst forecasts in family firms

Abstract

Analyzing an international sample of listed firms during 2007-2019, this study is the first to examine the market informativeness of financial analyst news issued for family-owned corporations and offer evidence on whether family control affects the way the markets value public information. The empirical findings document that the incremental information contained in the analysts’ earnings news of family firms is priced by the market by at least 50% more than that of non-family firms with the pricing increasing further for family firms that have also issued management guidance for the reference fiscal period. Drawing from the agency and socioemotional wealth preservation theories, we propose that one primary driving factor of the increased value relevance of analyst news in family firms is the superiority of information contained in the management guidance issued by those firms. Disaggregating analyst news into management guidance and residual information components empirically supports this conjecture. As the financial analysts seem to under-react to the management guidance issued by family firms, particularly following negative guidance surprises, the increased pricing may also indicate that investors are aware of the superiority of forward-looking information contained in the management guidance of family firms and over-price their analyst news to correct the analyst under-reaction tendency.