https://www.um.edu.mt/library/oar/handle/123456789/4650 2026-04-11T01:19:42Z https://www.um.edu.mt/library/oar/handle/123456789/143459 Title: The determinants of a successful venture capital market : analysing economic, stock and bond market influences in the US and EU Abstract: This study investigates the macroeconomic determinants of Venture Capital (VC) inflows in the United States and the European Union over the period 2007Q1–2023Q4. Employing a quantitative, longitudinal, and comparative econometric approach, the research utilizes Ordinary Least Squares (OLS) regression models with Heteroskedasticity and Autocorrelation Consistent (HAC) standard errors. The empirical analysis reveals distinct dynamics between the two ecosystems. In the US, results align with classical economic theory, where VC inflows are pro-cyclical and integrated with the real economy, demonstrating significant relationships with GDP and stock market performance. Conversely, the EU market appears insulated from real-economy indicators, with GDP and stock market performance found to be statistically insignificant, validating concerns regarding structural fragmentation raised in the Draghi (2024) report. Despite these divergences, bond market performance consistently emerges as a significant negative determinant across both regions, supporting supply-side theory, while inflation demonstrates a positive influence, particularly post-2014. The findings underscore that while the US market remains dynamic, the EU requires deep structural integration to connect capital to its innovative potential. Description: M.A.(Melit.) 2026-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/143458 Title: Complex environments, simple strategies : an in-depth profitability analysis of MACD, RSI and Bollinger bands for technological equities Abstract: This study focused on technical analysis through Moving Average Convergence Divergence (MACD), Relative Strength Index (RSI) and Bollinger Bands, both individually as well as their combination, to test their performance compared to the Buy-and-Hold strategy, using it as a benchmark. This research, unlike many previous studies, had a specific targeted sector which was the technological one. It also tried to bridge the gap between different research results regarding whether simple indicators were able to outperform the passive Buy-and-Hold strategy. This was done on high performing stocks from the NASDAQ stock exchange and was taken on 5- year and 20-year periods. The results showed that these indicators, as well as their combinations, severely underperformed the Buy-and-Hold strategy, reaching to just 50% of its profits in the 5- year period and 25% in the 20-year period. Description: M.A.(Melit.) 2024-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/140686 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 https://www.um.edu.mt/library/oar/handle/123456789/140685 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