/library/oar/handle/123456789/2579 2025-10-30T22:21:40Z 2025-10-30T22:21:40Z /library/oar/handle/123456789/140686 2025-10-28T14:56:06Z 2025-01-01T00:00:00Z

Title: The role of liquidity risk in shaping the dynamics of the Maltese equity market Abstract: Liquidity is a fundamental feature of shaping equity dynamics, investor participation and trading activity (Amihud, 2002; Chordia et al., 2005). Liquidity risk arises when securities cannot easily be traded, which is a recurring issue in small and less active markets (Lesmond et al., 1999; Bekaert et al., 2005). The rationale of this study was to examine the relationship between liquidity risk and selected market variables in the Maltese equity market, specifically volume traded, value traded, bid-ask spreads, stock price and days of stale pricing. A mixed-methods approach was employed using both quantitative and qualitative analysis through secondary data and semi-structured interviews with industry professionals. The empirical findings revealed that liquidity risk is the most strongly associated with trading activity (volume traded and value traded). Moreover, the interviewees further highlighted that structural constraints such as limited free float and the absence of a market maker discourage active trading. The study concludes that liquidity risk poses a persistent challenge to the Maltese equity market, constraining both investor flexibility and issuers’ cost of capital. Based on these findings, the research recommends that policymakers and regulators consider measures to enhance liquidity, including the introduction of market makers, tax incentives for both retail and institutional participants and potential reforms to the free float requirements. Further research is encouraged to compare Malta’s findings with other small developed and emerging markets, to identify transferable policy lessons. Description: M.A.(Melit.)

2025-01-01T00:00:00Z /library/oar/handle/123456789/140685 2025-10-28T14:53:23Z 2025-01-01T00:00:00Z

Title: An examination of startup financing dynamics in Malta : challenges and opportunities Abstract: Like any other business, startups play an important role in the creation of jobs and fostering economic growth. However, startups have another crucial role; that of pushing innovation. In order for startups to grow and expand, they need access to sufficient financing resources. Startups, especially those in the early stages, are often thought to be risky mostly because of their lack of tangible assets to serve as a collateral, and a limited operating history. As a result, they often find it challenging to obtain adequate funding which prevents them from growing, expanding and achieving their full potential. This dissertation examines the financing needs of startups in Malta, the funding options available to them and the difficulties encountered in accessing them. It also explores the role of government assistance and support schemes in addressing these challenges and improvements that can be made in the Maltese financing ecosystem for startups. The research involves the collection of primary data through the use of two surveys; one distributed to Maltese startups (covering their financing needs, challenges, and government support) and a complementary questionnaire for bank representatives. The study aims to capture perspectives from both entrepreneurs and financial institutions to provide a holistic view of the financing landscape. The results indicate that Maltese startups find it challenging to access external finance, particularly in securing traditional bank debt due to high collateral requirements and risk aversion by investors. Although the Maltese government supports the startup ecosystem though various initiatives, many startups remain unaware of available support or perceive the application processes as too complex and burdensome. Moreover, alternative financing mechanisms are still underdeveloped in the Maltese startup ecosystem. The findings of this study show that the financing ecosystem in Malta needs to be more diversified and accessible to young ventures like startups by streamlining application processes and by the adoption of innovative funding instruments that are tailored to startups’ specific needs. Description: M.A.(Melit.)

2025-01-01T00:00:00Z /library/oar/handle/123456789/140684 2025-10-28T14:50:46Z 2025-01-01T00:00:00Z

Title: Assessing the performance of active fund managers in the European high yield bond space Abstract: This dissertation undertakes an investigation to observe whether active fund managers in the European high yield bond market can deliver sustained excess returns in relation to a passive alternative. The European high yield market through its liquidity, concertation and sensitivity to prevailing conditions presents both opportunities and challenges to active managers. This research targets the underrepresented area of performance attribution within the European high yield market within academic literature through undertaking a quantitative analysis on nine actively managed European high yield funds and a singular passive alternative across a six-year time period. The analysis undertakes risk adjust metrics, drawdown and recovery analysis along with an examination of option adjusted spread behaviour. This is reviewed in the context of broader ECB policy rates, default rates and credit spreads to identify the market conditions most conducive to alpha generation. Ultimately the study yields that alpha generation is periodic rather than persistent, with active managers only outperforming the passive ETF during dislocated market phases. These episodic bursts of outperformance highlight that active management can add value under certain conditions, yet sustained alpha remains elusive. Description: M.A.(Melit.)

2025-01-01T00:00:00Z /library/oar/handle/123456789/140683 2025-10-28T14:47:21Z 2025-01-01T00:00:00Z

Title: Applying technical analysis to leveraged ETFs : an empirical study using moving averages Abstract: Leveraged ETFs (LETFs) are exchange traded funds that use derivatives and borrowing to deliver a multiple, typically two or three times, the daily performance of an index. They attract investors because of the potential for magnified gains, but they also come with risks such as volatility drag and path dependency that can decrease long-term performance. This study examines whether a simple, rule-based trading strategy can help overcome some of these issues. The strategy uses a crossover signal between a 12-day exponential moving average (EMA) and a 100-day triangular moving average (TMA). To limit downside risk, it adds a stop-loss that adjusts dynamically using the Average True Range (ATR) The approach was tested on three well-known leveraged ETFs, TQQQ, UPRO, and UDOW , across different market conditions. In some cases the strategy did better than a plain buy-and-hold, especially when markets were volatile. The gains showed up not only in stronger risk-adjusted returns but also in smaller drawdowns compared with the benchmark. Overall, the results suggest that a systematic EMA–TMA strategy with ATR risk controls can offer a steadier way of trading leveraged ETFs. While it does not remove the structural weaknesses of these products entirely, it provides evidence that adaptive, momentum-driven rules may help active traders manage risk and improve consistency where passive exposure often struggles. Furthermore, the findings highlight the value of disciplined, rules-based methods in volatile markets and suggest that this framework could be refined and extended in future studies to test its relevance across different assets and time horizons. Description: M.A.(Melit.)

2025-01-01T00:00:00Z