Municipal Bonds at Bucharest Stock Exchange: What the Correlations are Revealing?

Authors

  • Cornelia POP Prof.dr., Department of Business, Faculty of Business, Babes-Bolyai University, Cluj-Napoca, Romania. E-mail: cornelia.pop@ubbcluj.ro https://orcid.org/0000-0002-8912-4303
  • Maria-Andrada GEORGESCU Assoc.Prof.dr., University of Political Studies and Public Administration, Bucharest, Romania. E-mail: mariaandrada.georgescu@administratiepublica.eu https://orcid.org/0000-0002-4882-7256

DOI:

https://doi.org/10.24193/subbnegotia.2024.2.04

Keywords:

municipal bond, Romania, correlations

Abstract

Article history: Received: May 15, 2024; Reviewed: June 14, 2024;
Accepted: June 21, 2024; Available online: June
30, 2024.

As highlighted by Pop & Georgescu (2024), the Romanian academic literature concerning municipal bonds is sparse, while the investigations regarding the factors that can influence the sub-sovereign bond trading at Bucharest Stock Exchange is quasi non-existent, to the best of authors’ knowledge.

The present paper continues the work of Pop & Georgescu (2024) by trying to identify which of the public available information regarding various interest rates and Bucharest Stock Exchange (henceforth BVB) indices returns influence the trading activity of municipal bond market segment.

The correlations presented within this paper imply that the modest profile of municipal bond segment at BVB is related to a relative small number of individual investors that dominate the transactions, using mostly observed data to decided when to trade and what to trade. The scarce correlations that appear in relation with the trading volume and trading value point toward the idea that only a small portion of the listed municipal bonds are owned by individual investors.

JEL Classification: G12

References

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Pop, C. & Georgescu, M.A. (2024). Two decades of municipal bond trading at the Bucharest Stock Exchange. In: Negrușa, A.L., Coroş, M.M. (eds) Sustainable Approaches and Business Challenges in Times of Crisis. ICMTBHT 2022. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-031-48288-5_16

Vasa, L., Hegedus, S. & Lentner, C. (2021). Debt dynamics among European municipalities and their organizations: comparative analysis with focus on Hungary. European Research Studies Journal, 24(1), 622-645. https://doi.org/10.35808/ersj/1984

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Published

2024-06-30

How to Cite

POP, C., & GEORGESCU, M.-A. (2024). Municipal Bonds at Bucharest Stock Exchange: What the Correlations are Revealing?. Studia Universitatis Babeș-Bolyai Negotia, 69(2), 73–111. https://doi.org/10.24193/subbnegotia.2024.2.04

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