Stricter microprudential supervision versus macroprudential supervision

2015 ◽  
Vol 23 (4) ◽  
pp. 354-368 ◽  
Author(s):  
Larry D Wall
Keyword(s):  
Financial Crisis ◽  
Financial Markets ◽  
Financial Stability ◽  
Design Methodology ◽  
Economic Damage ◽  
Financial Systems ◽  
Content Type ◽  
Depth Analysis ◽  
The Usa ◽  
Practical Implications

Purpose – The purpose of this paper is to develop an explicitly macroprudential supervisory framework designed to identify threats to financial stability use existing mechanisms to reduce the risk of these threats and to provide information to the authorities to more efficiently mitigate any instability that does arise. Design/methodology/approach – This paper begins with an analysis of the limitations of microprudential regulation. It then develops a macroprudential surveillance framework focused on those financial markets that have the potential to undermine financial stability. It concludes with a discussion of how the surveillance results may be used to enhance financial stability. Findings – The current supervisory focus on microprudential supervision of systemically important institutions is insufficient; an explicitly macroprudential focus is required. Research limitations/implications – Although this paper’s conceptual framework is applicable to all advanced financial systems the discussion of specific regulatory structures focuses on the USA. Practical implications – An explicit supervisory focus on the threats posed by major financial markets is feasible and desirable. Social implications – The probability of a financial crisis and the economic damage caused by a crisis can be significantly reduced by redirecting some regulatory efforts toward in-depth analysis of major financial markets. Originality/value – The paper emphasizes that macroprudential supervision must include both quantitative and detailed analysis of the qualitative aspects of key markets.

Spillover effect in Asian financial markets: A VAR-structural GARCH analysis

2016 ◽  
Vol 6 (2) ◽  
pp. 150-176 ◽  
Author(s):  
Yu Wang ◽  
Lei Liu
Keyword(s):  
Financial Crisis ◽  
Financial Markets ◽  
Design Methodology ◽  
Global Financial Crisis ◽  
Spillover Effect ◽  
Asian Financial Crisis ◽  
Financial Contagion ◽  
Content Type ◽  
Main Driver ◽  
The Usa

Purpose – The purpose of this paper is to provide a method for computing the spillover index first proposed by Diebold and Yilmaz (2009), with empirical application on Asian stock markets. Design/methodology/approach – It is based on a VAR-structural-GARCH model. Findings – The results clearly show that the main driver of fluctuations in Asian financial markets is the USA, with China having little connection with other markets. Further, evidence of financial contagion is found during both the 1997 Asian financial crisis and the 2008 global financial crisis. Originality/value – The method has two advantages: it is both uniquely determined and dynamic.

Renewed hope for the low-profit limited liability company

2018 ◽  
Vol 13 (1) ◽  
pp. 100-111 ◽  
Author(s):  
Sonia J. Toson
Keyword(s):  
Detailed Analysis ◽  
Design Methodology ◽  
Limited Liability ◽  
Limited Liability Company ◽  
Social Entrepreneurs ◽  
Content Type ◽  
Depth Analysis ◽  
The Usa ◽  
Practical Implications ◽  
Legal Opinion

Purpose The purpose of this paper is to challenge the notion that low-profit limited liability companies (L3Cs) are an ineffective or flawed choice of entity for social entrepreneurs. Most of the literature surrounding L3Cs has been critical of the form; however, a detailed analysis shows that the form is not only still viable but also, in fact, experiencing growth. Design/methodology/approach This paper utilizes key literature and an analysis of current L3C activity in the USA to provide a unique viewpoint on the utility and viability of L3Cs in the USA. Findings Analysis demonstrates that despite criticisms throughout the legal community, the L3C is experiencing recent growth and continues to be a viable choice of entity for social entrepreneurs. Practical implications This piece fills a significant gap in the literature surrounding L3Cs. Much has been written about L3Cs in the legal academy, but analysis is scarce when reviewing management and entrepreneurship literature. Originality/value This piece furthers the literature by providing the business academy with an in-depth analysis of the legal components of L3Cs and draws research-based conclusions about the state of the form and its viability for social entrepreneurs. It is unique in that it challenges the prevailing legal opinion that the L3C form is useless and unnecessary.

scholarly journals The future of financial markets and regulation: what strategy for Europe?

foresight ◽  
2014 ◽  
Vol 16 (2) ◽  
pp. 95-108 ◽  
Author(s):  
Jean-Baptiste Gossé ◽  
Dominique Plihon
Keyword(s):  
Financial Markets ◽  
Capital Market ◽  
Financial Stability ◽  
Design Methodology ◽  
Financial Integration ◽  
Content Type ◽  
Realistic Option ◽  
The Future ◽  
Unstable Environment ◽  
Insight Into

Purpose – This article aims to provide insight into the future of financial markets and regulation in order to define what would be the best strategy for Europe. Design/methodology/approach – First the authors define the potential changes in financial markets and then the tools available for the regulator to tame them. Finally, they build five scenarios according to the main evolutions observed on the financial markets and on the tools used by the regulator to modify these trends. Findings – Among the five scenarios defined, two present highly unstable features since the regulator refuses to choose between financial opening and independently determining how to regulate finance in order to preserve financial stability. Three of them achieve financial stability. However, they are more or less efficient or feasible. In terms of market efficiency, the multi-polar scenario is the best and the fragmentation scenario is the worst, since gains of integration depend on the size of the new capital market. Regarding sovereignty of regulation, fragmentation is the best scenario and the multi-polar scenario is the worst, because it necessitates coordination at the global level which implies moving further away from respective national preferences. However, the more realistic option seems to be the regionalisation scenario: this level of coordination seems much more realistic than the global one; the market should be of sufficient size to enjoy substantial benefits of integration. Nevertheless, the “European government” might gradually increase the degree of financial integration outside Europe in line with the degree of cooperation with the rest of the world. Originality/value – Foresight studies on financial markets and regulation are quite rare. This may be explained by the difficulty to forecast what will be their evolution in the coming decades, not least because finance is fundamentally unstable. This paper provides a framework to consider what could be the best strategy of regulators in such an unstable environment.

scholarly journals Implications of divergences in adult protection legislation

2016 ◽  
Vol 18 (3) ◽  
pp. 149-160 ◽  
Author(s):  
Lorna Montgomery ◽  
Janet Anand ◽  
Kathryn Mackay ◽  
Brian Taylor ◽  
Katherine C. Pearson ◽  
...  
Keyword(s):  
Design Methodology ◽  
Elder Abuse ◽  
Consensus Model ◽  
Content Type ◽  
Legal Responses ◽  
The Usa ◽  
Protection Legislation ◽  
The Uk ◽  
Practical Implications ◽  
Adult Protection

Purpose – The purpose of this paper is to explore the similarities and differences of legal responses to older adults who may be at risk of harm or abuse in the UK, Ireland, Australia and the USA. Design/methodology/approach – The authors draw upon a review of elder abuse and adult protection undertaken on behalf of the commissioner for older people in Northern Ireland. This paper focusses on the desk top mapping of the different legal approaches and draws upon wider literature to frame the discussion of the relative strengths and weaknesses of the different legal responses. Findings – Arguments exist both for and against each legal approach. Differences in defining the scope and powers of adult protection legislation in the UK and internationally are highlighted. Research limitations/implications – This review was undertaken in late 2013; while the authors have updated the mapping to take account of subsequent changes, some statutory guidance is not yet available. While the expertise of a group of experienced professionals in the field of adult safeguarding was utilized, it was not feasible to employ a formal survey or consensus model. Practical implications – Some countries have already introduced APL and others are considering doing so. The potential advantages and challenges of introducing APL are highlighted. Social implications – The introduction of legislation may give professionals increased powers to prevent and reduce abuse of adults, but this would also change the dynamic of relationships within families and between families and professionals. Originality/value – This paper provides an accessible discussion of APL across the UK and internationally which to date has been lacking from the literature.

Large-cap vs small-cap portfolio performance: new empirical evidence from ETFs

2019 ◽  
Vol 18 (1) ◽  
pp. 71-94
Author(s):  
Gerasimos Rompotis
Keyword(s):  
Design Methodology ◽  
Portfolio Performance ◽  
Exchange Traded Funds ◽  
Investment Strategies ◽  
Time Data ◽  
Content Type ◽  
Risk Characteristics ◽  
The Usa ◽  
First Time ◽  
Practical Implications

PurposeA well-documented pattern in the literature concerns the outperformance of small-cap stocks relative to their larger-cap counterparts. This paper aims to address the “small-cap versus large-cap” issue using for the first time data from the exchange traded funds (ETFs) industry.Design/methodology/approachSeveral raw return and risk-adjusted return metrics are estimated over the period 2012-2016.FindingsResults are partially supportive of the “size effect”. In particular, small-cap ETFs outperform large-cap ETFs in overall raw return terms even though they fail the risk test. However, outperformance is not consistent on an annual basis. When risk-adjusted returns are taken into consideration, small-cap ETFs are inferior to their large-cap counterparts.Research limitations/implicationsThis research only covers the ETF market in the USA. However, given the tremendous growth of ETF markets worldwide, a similar examination of the “small vs large capitalization” issue could be conducted with data from other developed ETF markets in Europe and Asia. In such a case, useful comparisons could be made, so that we could conclude whether the findings of the current study are unique and US-specific or whether they could be generalized across the several international ETF markets.Practical implicationsA possible generalization of the findings would entail that profitable investment strategies could be based on the different performance and risk characteristics of small- and large-cap ETFs.Originality/valueThis is the first study to examine the performance of ETFs investing in large-cap stock indicesvis-à-visthe performance of ETFs tracking indices comprised of small-cap stocks.

Exploring the relationship between dispositions to think critically and sustainability concern in HESD

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kerry Shephard ◽  
Qudsia Kalsoom ◽  
Ritika Gupta ◽  
Lorenz Probst ◽  
Paul Gannon ◽  
...  
Keyword(s):  
Higher Education ◽  
Sustainable Development ◽  
Critical Thinking ◽  
New Zealand ◽  
Design Methodology ◽  
Educational Systems ◽  
Content Type ◽  
The Usa ◽  
The Relationship ◽  
Practical Implications

Purpose Higher education is uncertain which sustainability-related education targets should be sought and monitored. Accepting that something needs to be measurable to be systematically improved, the authors explored how measures relate to potential targets. This paper aims to focus on dispositions to think critically (active open-minded thinking and fair-minded thinking in appraising reasoning) as measures and explored how they related to sustainability concern as an indicative educational target. Design/methodology/approach This research included the development and testing of research instruments (scales) that explored dispositions to critical thinking and sustainability concern. Authors researched these instruments within their own correspondence groups and tested them with university students and staff in Pakistan, the USA, Austria, India and New Zealand. The authors also asked a range of contextualising questions. Findings Respondents’ disposition to aspects of active, open-minded thinking and fair-minded thinking do predict their concern about facets of sustainability but their strength of religious belief was an important factor in these relationships and in their measurement. Practical implications This research demonstrates the complexity of monitoring dispositions to think critically and sustainability concern in educational systems, particularly in circumstances where the roles of religious beliefs are of interest; and suggests ways to address this complexity. Originality/value This research integrates and expands discourses on ESD and on critical thinking in diverse disciplines and cultures. It investigates measurement approaches and targets that could help higher education institutions to educate for sustainable development and to monitor their progress, in ways that are compatible with their culture and values.

The blame game

2020 ◽  
Vol 36 (7) ◽  
pp. 11-13
Keyword(s):  
Supply Chain ◽  
Financial Crisis ◽  
Case Studies ◽  
Design Methodology ◽  
Reading Time ◽  
Global Market ◽  
Content Type ◽  
Corporate Failure ◽  
Pertinent Information ◽  
Practical Implications

Purpose Reviews the latest management developments across the globe and pinpoints practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Why do firms fail? The reasons behind given for corporate failure vary widely. During the financial crisis, firms failed because of the financial crisis, or during the Coronavirus pandemic firms failed due to the Coronavirus pandemic. When there are global market problems, those problems tend to get the blame for most things, including firms going under. But other reasons are sometimes given as well – that a firm is carrying too much debt to be sustainable, or a hypercompetitive market, or there are unsurmountable problems in the supply chain. Very often, these reasons are not scrutinized very closely as everyone moves on to invest in another company or try and find work elsewhere. Practical implications Provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Original/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

scholarly journals Tax evasion and financial instability

2020 ◽  
Vol 27 (2) ◽  
pp. 531-539
Author(s):  
Peterson K. Ozili
Keyword(s):  
Tax Evasion ◽  
Exploratory Study ◽  
Financial Stability ◽  
Design Methodology ◽  
Tax Revenue ◽  
Financial Instability ◽  
Financial Systems ◽  
Content Type

Purpose The purpose of this paper is to explore the association between tax evasion and financial instability. The discussion also examines the effects of tax evasion for financial instability. Design/methodology/approach This paper is an exploratory study on the effect of tax evasion on financial instability Findings The paper shows that tax evasion can reduce the tax revenue available to governments to manage the economy and can weaken the government’s ability to promote stability in financial systems, whereas on the contrary, taxpayers who evade taxes feel they can use the evaded tax money to rather improve their own financial stability. Originality/value This paper presents the first attempt to carefully examine the association between tax evasion and financial instability.

Return and co-movement of major public real estate markets during global financial crisis

2017 ◽  
Vol 35 (5) ◽  
pp. 489-508 ◽  
Author(s):  
Kim Hiang Liow ◽  
Shao Yue Angela
Keyword(s):  
Financial Crisis ◽  
Real Estate ◽  
Global Financial Crisis ◽  
Content Type ◽  
Real Estate Markets ◽  
The Public ◽  
Movement Dynamics ◽  
The Usa ◽  
Short Run ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the volatility spectral of five major public real estate markets, namely, the USA, the UK, Japan (JP), Hong Kong (HK), and Singapore (SG), during the pre- and post-global financial crisis (GFC) periods. Design/methodology/approach First, univariate spectral analysis is concerned with discovering price cycles for the respective real estate markets. Second, bivariate cross-spectral analysis seeks to uncover whether any two real estate price series share common cycles with regard to their relative magnitudes and lead-lag patterns of the cyclical variations. Finally, to test the contagion effects, the authors estimate the exact percentage change in co-spectral density (cyclical covariance) due to high frequencies (short run) after the GFC. Findings The authors find that whilst none of the public real estate markets examined are spared from the crisis, the three Asian markets were less severely affected by the GFC and were accompanied by a reversal in volatility increase three years post-global financial crisis. Additionally, the public real estate markets studied have become more cyclically linked in recent years. This is particularly true at longer frequencies. Finally, these increased cyclical co-movements measure the outcomes of contagion and indicate fairly strong contagious effects between the public real estate markets examined due to the crisis. Research limitations/implications The implication of this research is that benefits to investors from international real estate diversification may not be as great during the present time compared to previous periods because national public real estate markets have become more correlated. Nevertheless, the findings do not imply the complete absence of diversification benefits. This is because although cyclical correlations increase in the short run, many of the correlation values are still between low and moderate range, indicating that some diversification benefits may still be realized. Practical implications Given the significant market share and the highest levels of securitization in Asia-Pacific markets including JP, HK/China, and SG, this cyclical research including major public real estate markets has practical implications for ongoing international real estate investment strategies, particularly for the USA/UK and Asian portfolio managers. Originality/value This paper contributes to the limited research on the cyclical return and co-movement dynamics among major public real estate markets during financial/economic crisis in international finance. Moreover, the frequency-domain analysis conducted in this paper adds to better understanding regarding the impact of GFC on the cyclical return volatility and co-movement dynamics of major developed public real estate markets in international investing.

Food consumption and manufacturing output

2016 ◽  
Vol 24 (4) ◽  
pp. 38-40
Author(s):  
Graham Cole
Keyword(s):  
Chronic Disease ◽  
Food Consumption ◽  
Healthcare Costs ◽  
Design Methodology ◽  
Reading Time ◽  
Well Being ◽  
Content Type ◽  
The Usa ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Recent decades have witnessed growing concerns about obesity and serious medical conditions. These issues are especially prominent in the USA. One significant consequence is a stronger commitment toward improving health in the workplace. It is widely accepted that positive correlation exists between employee well-being and productivity. The reverse is also true though. Chronic disease among the workforce invariably affects the organization’s ability to compete with its rivals. An inevitable rise in healthcare costs further heightens the negative fallout. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent, information and presenting it in a condensed and easy-to-digest format.

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