Central and Eastern European countries in the global financial crisis: a typical twin crisis?

2011 ◽  
Vol 23 (4) ◽  
pp. 415-432 ◽  
Author(s):  
Diemo Dietrich ◽  
Tobias Knedlik ◽  
Axel Lindner
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
European Countries ◽  
Eastern European ◽  
Twin Crisis ◽  
Eastern European Countries ◽  
The Global Financial Crisis

scholarly journals External financing in Central and Eastern European countries after the global financial crisis

2020 ◽  
Author(s):  
Ewa Bilewicz
Keyword(s):  
Global Financial Crisis ◽  
Balance Of Payments ◽  
Capital Inflows ◽  
European Countries ◽  
Eastern European ◽  
External Financing ◽  
Large Drop ◽  
Financial Account ◽  
Eastern European Countries ◽  
The Global Financial Crisis

The aim of the paper is to analyse changes in the financial account of the balance of payments in 11 Central and Eastern European countries (CEE) during the years 2007-2017. The analysis comprises changes in the value of the financial account's components. The economic crisis reversed existing tendencies in net capital flows to CEE countries. They transformed from net recipients of capital to providers of capital to the rest of the world. This situation is completely different than the pre-crisis period when CEE countries experienced significant net inflows of mainly direct invest- ment, with capital moving ‘downhill', mostly from richer EU countries. The fall in the surplus on the financial account of the balance of payments was determined mainly by a large drop in net other investments and even their outflow, especially during 2012-2015. The net outflow of capital was also caused by the accumulation of reserves by central banks. In relation to other transactions of the financial account, a slowdown in net capital inflows was recorded. The lowered surplus on the CEE countries' financial balances can have an effect on their external stability, however, they have seen a reemergence of inflows in recent quarters, including in non-FDI flows.

scholarly journals Do the burst of financial crisis and European Union membership impact Earnings Management. Evidence from emerging Eastern European countries

2020 ◽  
Vol 25 (4) ◽  
pp. 608-647
Author(s):  
Susana Callao ◽  
José I. Jarne ◽  
David Wroblewski
Keyword(s):  
European Union ◽  
Financial Crisis ◽  
Earnings Management ◽  
Global Financial Crisis ◽  
European Countries ◽  
Eastern European ◽  
The European Union ◽  
The Czech Republic ◽  
Factors Influencing ◽  
Eastern European Countries

The paper studies earnings management in developing European countries. We investigated if membership in the European Union and the recent global financial crisis affected the decisions of managers in Eastern European countries to engage in earnings management. By analyzing a sample of 4,627 firms from four developing Eastern European countries (the Czech Republic, Poland, Hungary, and Slovakia) over the period of 2002-2009, our findings suggest there was a decrease in earnings management over the period leading up to the accession of these countries to the European Union. Additionally, we found that there was an increase in earnings management after the burst of the financial crisis. The results contribute to the debate in the accounting literature regarding the variations in earnings management related to the changes in environmental factors influencing companies. These results have several implications for standard setters and regulators; in particular, companies’ incentives are strongly influenced by the general conditions and circumstance of their home countries. Additionally, the study explores the still unexplored developing markets of Eastern European countries.

scholarly journals Determinants of crowdfunding success in central and eastern European countries

2021 ◽  
Vol 26 (2) ◽  
pp. 99-113
Author(s):  
Marija Šimić Šarić
Keyword(s):  
Financial Crisis ◽  
Project Success ◽  
European Countries ◽  
Success Factor ◽  
Eastern European ◽  
Project Duration ◽  
Factors Influencing ◽  
Probability Of Success ◽  
Eastern European Countries

As an alternative way of financing, crowdfunding has been growing rapidly since the last financial crisis in 2008. The number of launched projects has increased, but the number of successful projects remains low. Little is known about what leads to success in this field, especially in Central and Eastern European (CEE) countries where the determinants of crowdfunding campaign success for projects are not identified. Therefore, the article focuses on identifying determinants of crowdfunding campaign success for projects from CEE countries. Based on the dataset from Kickstarter, consisting of 473 projects from CEE countries, I examine factors influencing the probability of project success. The analyzed sample of projects shows that the number of backers and mean contribution are positively correlated with the probability of campaign success, while a higher project goal lowers the probability of success. Project duration is not a statistically significant success factor.

After 2008 Global Financial Crisis, Short-Term Dynamics of CDS, Bond, and Stock Markets in South Eastern European Economies

2013 ◽  
pp. 181-194
Author(s):  
Ali Sabri Taylan ◽  
Hüseyin Tatlidil
Keyword(s):  
Financial Crisis ◽  
Credit Risk ◽  
Stock Markets ◽  
European Countries ◽  
Stock Index ◽  
Bond Markets ◽  
Eastern European ◽  
South Eastern ◽  
Eastern European Countries

Credit risk pricing is perhaps an understudied topic in comparisons to its profound impact on the world’s financial markets and economies. This study uses established price discovery techniques to develop a method of price discovery for credit risk in three financial markets: equity, debt, and credit derivative. This chapter is motivated by the development of credit-related instruments and signals of stock price movements of South-Eastern European countries—Bulgaria, Croatia, Greece, Hungary, Romania, Slovenia, Slovakia, and Turkey—during the recent financial crisis. In this study, the authors evaluate the dynamics of fiscal risk or country risk measured by sovereign Credit Default Swap (CDS), liquidity risk measured bond markets, and stock markets for the monthly based September 2008 – February 2011 period. The study examines monthly data observing 38 months and 8 countries. A panel vector autoregression model is proposed for changes in Long-Term Interest Rate (LTIR), changes in CDS spreads (CDS), and changes in stock index. In conclusion, CDS markets and stock markets are more significant than bond markets in explaining the post-crisis relationship among developing South-Eastern European countries. The analysis displays that long-term monetary policy did not affect CDS premium and stock index level. A strong relationship is found between the CDS spread and stock market. During financial crisis and after the crisis, the correlations among CDS, stock, and bond markets are collapsed by panicked investors’ rapid movement and wild speculators. This risk perception can explain the difference between the finance theory and practices in the market.

Another look at causes and consequences of pension privatization reform reversals in Eastern Europe

2017 ◽  
Vol 28 (3) ◽  
pp. 224-241 ◽  
Author(s):  
Nikola Altiparmakov
Keyword(s):  
Eastern Europe ◽  
Global Financial Crisis ◽  
Eastern European ◽  
Short Term ◽  
Rates Of Return ◽  
Rational Alternative ◽  
Fiscal Austerity ◽  
Eastern European Countries ◽  
The Global Financial Crisis

In order for ‘carve-out’ pension privatization to improve long-term sustainability, the transition should not be predominantly debt financed, and private pension funds should deliver (net) rates of return tangibly higher than gross domestic product (GDP) growth. We show that none of the reforming countries in Eastern Europe was successful in fulfilling these two preconditions, even before the emergence of the global financial crisis. While existing literature mostly describes a recent wave of reform reversals as politically driven short-sighted policies that deteriorate long-term sustainability, we argue the contrary: that pension privatization structural deficiencies and disappointing performance allow reversals to improve the short-term stance without necessarily undermining long-term pension sustainability. We conclude that unless political consensus exists to support the multi-decade fiscal austerity required to finance pension privatization, reform adjustments and reversals can be a rational alternative to maintaining economically suboptimal or politically unstable pension systems in some Eastern European countries.

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