Global financial crisis after ten years: a review of the causes and regulatory reactions

2019 ◽  
Vol 45 (7) ◽  
pp. 904-924 ◽  
Author(s):  
Ashrafee Tanvir Hossain ◽  
Lawrence Kryzanowski
Keyword(s):  
Financial Crisis ◽  
Design Methodology ◽  
Review Paper ◽  
Global Financial Crisis ◽  
Relevant Literature ◽  
Main Reaction ◽  
Housing Crisis ◽  
Content Type ◽  
The Usa ◽  
The Global Financial Crisis

Purpose The purpose of this paper is to review the relevant literature on the causes of and regulatory reactions to the financial crisis of the last decade, popularly known as the “Global Financial Crisis (GFC)” or the “Housing Crisis” in the USA. Design/methodology/approach This review primarily focuses on the four main causes of the crisis, namely, excessive household leverage, securitization, corporate governance and credit ratings. The main reaction vis-à-vis recovery measures taken by most governments were quantitative easing (QE), bailouts and more stringent regulations of banks, though the discussion mainly focuses on QE. Findings In this paper, the authors summarize the literature on the causes and regulatory reactions to the GFC and propose future avenues of research for various topics. Originality/value Research on the GFC spans multiple disciplines as well as multiple facets of financial economics. A review paper such as this should help future researchers in generating ideas and gathering information for their research. Given that no review uncovers all worthy papers, the authors apologize in advance to the authors of any papers that the authors have inadvertently not reviewed in this paper.

Taking the ethical lead

2020 ◽  
Vol 34 (4) ◽  
pp. 37-39
Keyword(s):  
Financial Crisis ◽  
Oil Spill ◽  
Design Methodology ◽  
Reading Time ◽  
Global Financial Crisis ◽  
Content Type ◽  
Lehman Brothers ◽  
Pertinent Information ◽  
The Global Financial Crisis ◽  
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 his/her own impartial comments and places the articles in context. Findings Take any financial or environmental scandal perpetrated by a major company – and unfortunately, there are quite a few to choose from – and people will tend to remember what went wrong and some of the fallout from the scandal, but it is unlikely they will know much about why something went wrong. For example, people will remember that Lehman Brothers went bust during the global financial crisis (GFC) in 2008 and can picture its employees leaving its offices with Iron Mountain boxes. They will also perhaps remember the Exxon Valdez oil spill in Alaska in 1989, and the devastation it caused the local wildlife. But does anyone remember exactly why these events occurred? Practical implications This 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.

Housing markets and policy in the UK and the USA

2014 ◽  
Vol 7 (1) ◽  
pp. 129-144 ◽  
Author(s):  
Colin Jones ◽  
Harry W. Richardson
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Home Ownership ◽  
House Price ◽  
Housing Markets ◽  
Detailed Comparison ◽  
Exogenous Shock ◽  
Content Type ◽  
The Usa ◽  
The Global Financial Crisis

Purpose – This paper aims to examine how the exogenous shock of the global financial crisis has had a differential impact on the housing markets of the USA and UK. Design/methodology/approach – The paper begins by examining the nature and dynamics of the global financial crisis. It presents a detailed comparison of institutional and housing market characteristics in each country. A particular focus is the differences in mortgage funding and subprime lending trends over the decade leading up to the financial crisis. Findings – The analysis demonstrates the distinctiveness of the recent housing cycles and the geography of the downward price adjustments. Relative unemployment rates play a key role in these outcomes. Despite the different dynamics of the boom and bust, there is a common legacy in terms of the collapse of house building, repossessions/foreclosures and falling home ownership rates. The short-term policy responses by both governments addressed the same target issues in alternative ways but with different outcomes. Longer-term solutions are still being debated in both countries. Originality/value – Innovatory insights are provided by the comparison of the sub-national spatial pattern of the recent house price cycle in two countries.

Assessing foreign funds geographical focus timing skill

2016 ◽  
Vol 33 (2) ◽  
pp. 209-221
Author(s):  
Javier Rodríguez ◽  
Herminio Romero
Keyword(s):  
Financial Crisis ◽  
Mutual Funds ◽  
Hedge Funds ◽  
Design Methodology ◽  
Global Financial Crisis ◽  
Market Timing ◽  
Content Type ◽  
Fund Managers ◽  
The Usa ◽  
Timing Models

Purpose This paper aims to study the market timing skill of USA-based foreign open-end mutual funds in their geographical focus market. Design/methodology/approach The authors use daily fund data and two multi-factor extensions of the Treynor-Mazuy (1966) and Henriksson-Merton (1981) timing models to measure US-based foreign funds’ market timing skill during 1999 to 2010. In particular, the authors study fund managers’ skill to time their geographical focus market. Findings The authors report that, in general, foreign funds do not accurately time their geographical focus market. However, during January 2008 to December 2010, the sub period that includes the 2008 global financial crisis, most foreign funds in this sample not only focused on their domestic market, the USA, but also demonstrated statistically significant, good timing skill. Originality/value Although US-based foreign funds’ market-timing skill is not an unexplored topic, this study is the first to consider these funds’ skill to time their geographical focus market, a skill that has been studied in the context of hedge funds.

Three rules for strategy at Deloitte Consulting

2015 ◽  
Vol 32 (1) ◽  
pp. 35-37
Keyword(s):  
Decision Making ◽  
Financial Crisis ◽  
Design Methodology ◽  
Reading Time ◽  
Global Financial Crisis ◽  
Business Leaders ◽  
Content Type ◽  
Pertinent Information ◽  
The Global Financial Crisis ◽  
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 – A lot has been written of the consequences of the global financial crisis (GFC) in the late 2000s – who was to blame, who should have seen it coming, who didn’t see it coming and who claimed to have predicted it years later. Such speculation has contributed to what might be termed a “global crisis of confidence”, as all the established rules went out of the window. Business leaders didn’t know who to trust any more, and decision-making suddenly got a lot more difficult as a result. 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.

Legislative and regulatory responses to the global financial crisis from within the United Kingdom

2014 ◽  
Vol 21 (2) ◽  
pp. 124-148 ◽  
Author(s):  
Graeme Baber
Keyword(s):  
United Kingdom ◽  
Financial Crisis ◽  
Design Methodology ◽  
Global Financial Crisis ◽  
The European Union ◽  
Content Type ◽  
The United Kingdom ◽  
Economic Statistics ◽  
The Global Financial Crisis ◽  
The Uk

Purpose – The purpose of this paper is to report and review the legislative and regulatory responses to the global financial crisis (GFC) from within the United Kingdom (UK). Design/methodology/approach – The paper observes aspects of the effect of the GFC within the UK, using economic statistics and institutional case studies. It summarises the laws that the European Union (EU) and the UK have produced in the wake of the crisis and recommends approaches to be taken from this point. Findings – The regulators are putting in place a comprehensive, integrated framework, much of which is sensible in its content. However, this structure will be insufficient to re-establish the effective operation of the financial sector, unless firms comply with the rules and a “relationship culture” is developed. Research limitations/implications – It is not yet clear how the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) will perform and coordinate. Originality/value – The paper presents a comprehensive review of relevant EU and UK legislation, thereby bringing readers up to date with the situation in the UK.

Teaching introductory macroeconomics during the Greek financial crisis

2019 ◽  
Vol 46 (8) ◽  
pp. 1032-1045
Author(s):  
John Marangos
Keyword(s):  
Financial Crisis ◽  
Design Methodology ◽  
Global Financial Crisis ◽  
Recent Survey ◽  
Content Type ◽  
Economic Theories ◽  
Eclectic Approach ◽  
Personal Experiences ◽  
Perceptions Of Teaching ◽  
The Global Financial Crisis

Purpose The purpose of this paper is to determine how including the Greek financial crisis in teaching introductory macroeconomics benefits students. Design/methodology/approach The methodology is based on the responses of a recent survey administered to students at a university in Greece. Findings An eclectic approach that distinguishes various economic theories and methodologies, mainly neoclassical and Keynesian, can provide a pedagogical way of teaching introductory macroeconomics, allowing students to use their everyday personal experiences in determining the most “suitable” theory in explaining the crisis. Originality/value To the author’s knowledge, such an exercise of discovering students’ perceptions of teaching an introductory macroeconomics Substitute with course during the global financial crisis has not yet been attempted.

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.

Inflation persistence and structural breaks

2016 ◽  
Vol 43 (6) ◽  
pp. 980-1005 ◽  
Author(s):  
Giorgio Canarella ◽  
Stephen M. Miller
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Structural Breaks ◽  
Global Financial Crisis ◽  
Structural Break ◽  
Mean Reversion ◽  
Inflation Persistence ◽  
Content Type ◽  
The Usa ◽  
The Global Financial Crisis

Purpose The purpose of this paper is to report on a sequential three-stage analysis of inflation persistence using monthly data from 11 inflation targeting (IT) countries and, for comparison, the USA, a non-IT country with a history of credible monetary policy. Design/methodology/approach First, the authors estimate inflation persistence in a rolling-window fractional-integration setting using the semiparametric estimator suggested by Phillips (2007). Second, the authors use tests for unknown structural breaks as a means to identify effects of the regime switch and the global financial crisis on inflation persistence. The authors use the sequences of estimated persistence measures from the first stage as dependent variables in the Bai and Perron (2003) structural break tests. Finally, the authors reapply the Phillips (2007) estimator to the subsamples defined by the breaks. Findings Four countries (Canada, Iceland, Mexico, and South Korea) experience a structural break in inflation persistence that coincide with the implementation of the IT regime, and three IT countries (Sweden, Switzerland, and the UK), as well as the USA experience a structural break in inflation persistence that coincides with the global financial crisis. Research limitations/implications The authors find that in most cases the estimates of inflation persistence switch from mean-reversion nonstationarity to mean-reversion stationarity. Practical implications Monetary policy implications differ between pre- and post-global financial crisis. Social implications Global financial crisis affected the persistence of inflation rates. Originality/value First paper to consider the effect of the global financial crisis on inflation persistence.

Owners’ preferences for CEOs characteristics: did the world change after the global financial crisis?

2016 ◽  
Vol 16 (1) ◽  
pp. 116-134 ◽  
Author(s):  
Chiara Mio ◽  
Marco Fasan ◽  
Antonio Ros
Keyword(s):  
Financial Crisis ◽  
Stock Options ◽  
Design Methodology ◽  
Success Factors ◽  
Global Financial Crisis ◽  
International Experience ◽  
Content Type ◽  
Research Theme ◽  
The Global Financial Crisis ◽  
Ceo Characteristics

Purpose The purpose of this paper is to study whether and how owners’ preferences for CEO characteristics changed due to the 2008-2009 global financial crisis. The authors identify three fundamental success factors needed for companies to compete in the after-crisis environment, and the authors connect five CEO characteristics to such factors. Design/methodology/approach The authors rely on a hand-collected database to build a panel data of European CEOs for the 2010-2012 period. Findings The empirical results indicate that after 2009, CEOs of companies that were more severely hit by the crisis are significantly different compared to those of other companies. More specifically, they have a background in science or engineering; they have international experience; and they are remunerated to a higher extent through stock options. The results of this paper also indicate that only international experience had a positive and significant impact on financial performance. Originality/value The paper contributes to the stream of literature on CEO characteristics and owners’ identity, tackling the research theme from a dynamic rather than from a static perspective.

Greed is (still) good

2014 ◽  
Vol 30 (6) ◽  
pp. 29-31 ◽  
Keyword(s):  
Financial Crisis ◽  
Design Methodology ◽  
Reading Time ◽  
Global Financial Crisis ◽  
East India Company ◽  
Content Type ◽  
Pertinent Information ◽  
The Global Financial Crisis ◽  
Dot Com ◽  
Practical Implications

Purpose – The purpose of this paper is 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 his/her own impartial comments and places the articles in context. Findings – There are some business phenomena that, like fashion, never seem to go away, or be truly original. Think of the drainpipe trousers that first saw the light in the nineteenth century, or the 1970s frilly shirts that were not a patch on those worn in Elizabethan times. Similarly, the global financial crisis was not a Great Depression, and the dot-com bubble could not hold a candle to the bubble that did for the East India Company all those years ago. Practical implications – This study 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 an easy-to-digest format.

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