scholarly journals Long-term effects of global oil price changes on the macroeconomy and financial markets: a comparative panel co-integration approach

2014 ◽  
Vol 22 (12) ◽  
pp. 960-966 ◽  
Author(s):  
M. Ali Sotoudeh ◽  
Andrew C. Worthington
Keyword(s):  
Financial Markets ◽  
Oil Price ◽  
Long Term Effects ◽  
Price Changes ◽  
Integration Approach

Disruptive Soft Law and Post-Crisis US Reform

2018 ◽  
Author(s):  
Abraham L. Newman ◽  
Elliot Posner
Keyword(s):  
Financial Markets ◽  
Great Recession ◽  
Regulatory Reform ◽  
The United States ◽  
Soft Law ◽  
Long Term Effects ◽  
The Great Recession ◽  
The Us ◽  
International Interaction

Chapter 6 examines the long-term effects of international soft law on policy in the United States since 2008. The extent and type of post-crisis US cooperation with foreign jurisdictions have varied considerably with far-reaching ramifications for international financial markets. Focusing on the international interaction of reforms in banking and derivatives, the chapter uses the book’s approach to understand US regulation in the wake of the Great Recession. The authors attribute seemingly random variation in the US relationship to foreign regulation and markets to differences in pre-crisis international soft law. Here, the existence (or absence) of robust soft law and standard-creating institutions determines the resources available to policy entrepreneurs as well as their orientation and attitudes toward international cooperation. Soft law plays a central role in the evolution of US regulatory reform and its interface with the rest of the world.

The persistent effect of banking crises on investment and the role of financial markets

2014 ◽  
Vol 6 (1) ◽  
pp. 64-77 ◽  
Author(s):  
Felix Rioja ◽  
Fernando Rios-Avila ◽  
Neven Valev
Keyword(s):  
Financial Markets ◽  
Financial Development ◽  
Banking Crisis ◽  
Banking Crises ◽  
Output Growth ◽  
Long Term Effects ◽  
Content Type ◽  
Negative Effect

Purpose – While the literature studying the effect of banking crises on real output growth rates has found short-lived effects, recent work has focused on the level effects showing that banking crises can reduce output below its trend for several years. This paper aims to investigate the effect of banking crises on investment finding a prolonged negative effect. Design/methodology/approach – The authors test to see whether investment declines after a banking crisis and, if it does, for how long and by how much. The paper uses data for 148 countries from 1963 to 2007. Econometrically, the authors test how banking crises episodes affect investment in future years after controlling for other potential determinants. Findings – The authors find that the investment to GDP ratio is on average about 1.7 percent lower for about eight years following a banking crisis. These results are robust after controlling for credit availability, institutional characteristics, and a host of other factors. Furthermore, the authors find that the size and duration of this adverse effect on investment varies according to the level of financial development of a country. The largest and longer-lasting decrease in investment is found in countries in a middle region of financial development, where finance plays its most important role according to theory. Originality/value – The authors contribute by finding that banking crisis can have long-term effects on investment of up to nine years. Further, the authors contribute by finding that the level of development of the country's financial markets affects the duration of this decrease in investment.

scholarly journals Corporate Social Responsibility and Bank Performance: A Co-integration Approach

2019 ◽  
Vol VOLUME 8 (2019) ◽  
pp. 31-59
Author(s):  
John Gartchie Gasti ◽  
Joseph Ameyibor ◽  
Edward Quansah
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Secondary Data ◽  
Bank Performance ◽  
Long Term Effects ◽  
Panel Ardl ◽  
Integration Approach ◽  
Long Run ◽  
Corporate Social

The aim of this study is to examine the short- and the long-run effects of Corporate Social Responsibility (CSR) on the performance of listed Ghanaian banks. An elongated balanced panel design with secondary data of 65 years’ bank observations spanning 2004 to 2016 was used for the study. A co-integration approach – Pooled Mean Group (PMG/Panel ARDL) – was used to examine the short- and the long-term effects of CSR on bank performance while controlling for bank variability, growth in interest income and bank size. The results were mixed. In the short term, it was found that CSR has positive but insignificant effect on bank performance (market-to-book value). In the long-term, however, CSR has significant negative effect on bank performance. Based on the findings, the study concludes that, in the long run, engaging in CSR reduces bank performance. Therefore, CSR needs to be carefully planned and implemented to serve as a boost to bank performance and not just regarded as an inconsequential addendum.

scholarly journals Impact of Crude Oil Price Changes on Household Consumption Expenditure in Oman (1990-2016)

2019 ◽  
Vol 4 (2) ◽  
pp. 97-104
Author(s):  
Abubakar El-Sidig A.A Mahdi
Keyword(s):  
Crude Oil ◽  
Household Consumption ◽  
Oil Price ◽  
Consumption Expenditure ◽  
Crude Oil Price ◽  
Price Changes ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Bound Test

Objective – The preceding three years (2014, 2015, and 2016) saw a drop in the price of oil which has impacted all parts of Omani macroeconomic life. This study aims to identify the association between oil price changes and aggregate household consumption expenditure in the Sultanate by analyzing the long term relationship between the variables of interest. Methodology/Technique – The (ARDL) Autoregressive Distributed Lag bound test of co-integration is used with 27 annual observations obtained between 1990 and 2016. Findings – The statistical results show that there is a long term, positive relationship between the two variables. Novelty – As Oman is heavily dependent on oil, any fluctuation in the price of oil will undoubtedly cause instability in the economy (macroeconomic variables) demonstrating the presence of a robust correlation between consumption and oil prices. The bound test of the ARDL approach demonstrates this relationship. This study is therefore useful for Muscat officials to identify ways to reduce the dependency on oil. Type of Paper: Empirical Keywords: Total Household Consumption Expenditure; Crude Oil Price; Autoregressive Distributed Lag (ARDL); Omani Economy. Reference to this paper should be made as follows: Abubakar El-Sidig A.A Mahdi. 2019. Impact of Crude Oil Price Changes on Household Consumption Expenditure in Oman (1990-2016), J. Bus. Econ. Review 4 (2): 97 – 104. https://doi.org/10.35609/jber.2019.4.2(4) JEL Classification: D1, D13, D19, E30.

‘The touchstone of German credit’: Nazi Germany and the service of the Dawes and Young Loans

2004 ◽  
Vol 11 (1) ◽  
pp. 33-50 ◽  
Author(s):  
PIET CLEMENT
Keyword(s):  
Financial Markets ◽  
Foreign Exchange ◽  
Interwar Period ◽  
First World War ◽  
Long Term Effects ◽  
World War ◽  
The First World War ◽  
Debt Policy ◽  
First World

This article examines the Nazi government's external debt policy, with particular regard to the service of the Dawes and Young Loans, the two most important international loans Germany concluded during the interwar period. The goal of this policy was to end once and for all the obligations resulting from the First World War reparations settlement, and at the same time to economise drastically on Germany's scarce foreign exchange reserves. These aims were achieved by imposing a partial default on external debts and by bilateralising trade and financial negotiations, thus dismantling the 1930 Young Plan. In many respects, the Nazi government continued policies in place since 1931, except that it went further and was more ruthless in their execution. However, the negative long-term effects of this policy were beginning to take their toll as Germany's economy was cut off from the international financial markets and increasingly burdened by complex foreign exchange regulations. It was left to the German Federal Republic to deal with the financial legacy of this policy after the war.

Stage Two of the Crisis and the Long-term Changes

2006 ◽  
pp. 85-106
Author(s):  
Stig Tenold
Keyword(s):  
Economic Impact ◽  
National Level ◽  
Oil Price ◽  
Shipping Industry ◽  
Long Term Effects ◽  
International Shipping ◽  
Second Stage ◽  
Long Term Changes ◽  
Price Hike

This chapter discusses the second stage of the shipping crisis and the long-term effects that it evoked. It traces the crisis from the mid-seventies low, through a brief flourish in 1978, to the plummet in shipping trade in the early 1980s, ten years after the first oil price hike. It analyses the response within the industry to the depression, noting in particular the emergence of Asian flags of convenience (FOCs). It also analyses the situation in 1970s Norway, considering the heavy presence of Norway in the international shipping industry and their deadweight tonnage numbers to demonstrate the economic impact of the crisis on a national level.

scholarly journals The response of corporate investments in the US to oil price changes: the role of asymmetries

2020 ◽  
Vol 9 ◽  
pp. 11-24
Author(s):  
Aktham I. Maghyereh ◽  
Basel Awartani
Keyword(s):  
Investment Decisions ◽  
Oil Price ◽  
Corporate Investments ◽  
Price Changes ◽  
Price Increases ◽  
The Us ◽  
Capital Spending ◽  
The Impact

This paper investigates the influence of oil on corporate investments in the US. The inference is taken from a large sample which contains data on 15,411 companies over the period that extended from 1984 to 2017. It adds to the literature by showing that non-oil corporate investments in the US respond asymmetrically to oil price changes. In particular, when the oil price increases, the capital spending of companies suffers by more than it benefits from the declines in the price of oil. These results are important in assessing the impact of energy price fluctuations on the long-term investment decisions of US companies.   

The Psychology of Speculation in the Financial Markets

2017 ◽  
Author(s):  
Victor Ricciardi
Keyword(s):  
Financial Crisis ◽  
Financial Markets ◽  
Behavioral Finance ◽  
Group Behavior ◽  
Status Quo ◽  
Status Quo Bias ◽  
Long Term Effects ◽  
The Impact

This chapter discusses the role of speculation in the financial markets that influences individual and group behavior in the form of bubbles and crashes. The chapter highlights behavioral finance issues associated with bubbles, such as overconfidence, herding, group polarization, groupthink effect, representativeness bias, familiarity issues, grandiosity, excitement, and the overreaction and underreaction to prices. These issues are important for understanding past financial mistakes because history often repeat itself. The chapter also examines the aftermath of the financial crisis of 2007–2008 on investor psychology, including the impact of a severe financial downturn, anchoring effect, recency bias, worry, loss averse behavior, status quo bias, and trust. The aftermath of the financial crisis might have negative long-term effects on investor psychology in which some investors remain overly risk averse, resulting in under-investment in stocks and over-investment in cash and bonds.

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