The Impact of the 2011 Short-Sale Ban on Financial Stability: Evidence from the Spanish Stock Market

2016 ◽  
Vol 22 (5) ◽  
pp. 1001-1022 ◽  
Author(s):  
Óscar Arce ◽  
Sergio Mayordomo
Keyword(s):  
Stock Market ◽  
Financial Stability ◽  
Short Sale ◽  
The Impact ◽  
Spanish Stock Market

scholarly journals FINANCIAL STABILITY AND INCOME GROWTH IN EMERGING MARKETS

2020 ◽  
Vol 23 (2) ◽  
pp. 201-220
Author(s):  
Bashir T. Mande ◽  
Afees Salisu ◽  
Adeola N. Jimoh ◽  
Fola Dosumu ◽  
Girei H. Adamu
Keyword(s):  
Stock Market ◽  
Emerging Markets ◽  
Financial Stability ◽  
Banking Sector ◽  
Financial System ◽  
Market Volatility ◽  
Income Growth ◽  
Stock Market Volatility ◽  
The Individual ◽  
The Impact

In this paper, we examine the extent to which financial stability matters for income growth in emerging markets. Using dynamic panel estimation techniques, we explore both the stock market and banking sector dimensions of the financial system to show that both stock market volatility and non-performing loans are detrimental to income growth in these markets. We, however, find the magnitude of the impact to be relatively more pronounced when the underlying source of instability in the financial system is stock market volatility. Overall, we find the impact of financial stability on income growth to be more statistically relevant when measured using the individual indicators of financial instability as compared to their composite indicator.

Addressing Financial Risks and Uncertainties Through Financial Literacy Education

2021 ◽  
pp. 437-456
Author(s):  
Danielle McKain
Keyword(s):  
Climate Change ◽  
Stock Market ◽  
Financial Literacy ◽  
Financial Stability ◽  
Literacy Education ◽  
Financial Instability ◽  
Financial Risks ◽  
Increased Risk ◽  
The World ◽  
The Impact

The world is full of financial risks and uncertainties even for those who have financial literacy. There are many factors to consider when planning financially: the stock market, hyperinflation, and climate change all play roles and are unpredictable. This chapter will focus on the actions that are being taken to establish financial literacy across the world and the impact these actions have on individual financial stability. Although financial literacy certainly cannot eliminate the risks and uncertainties that accompany unforeseen events, it is one way to prepare for these events. Even in times of normalcy, lack of financial literacy can put individuals at an increased risk of financial instability. This chapter presents a variety of recommendations and resources for financial literacy education as well as the risks and uncertainties that accompany their use.

scholarly journals An empirical analysis of the relationship between the information quality of CSR reporting and reputation among publicly traded companies in Spain

2017 ◽  
Vol 30 (1) ◽  
pp. 87-107 ◽  
Author(s):  
Andrea Pérez ◽  
Carlos Lopez-Gutierrez
Keyword(s):  
Stock Market ◽  
Corporate Reputation ◽  
Information Quality ◽  
Management Systems ◽  
Content Type ◽  
Csr Reporting ◽  
The Impact ◽  
The Relationship ◽  
Spanish Stock Market

Purpose Supported by the principles of the legitimacy theory, the purpose of this paper is to explore the relationship that exists between the information quality of the corporate social responsibility (CSR) reporting provided by the most liquid companies operating in the Spanish Stock Market and their corporate reputation. Design/methodology/approach Three regression models are tested with panel data collected for a sample of the 35 most liquid companies operating in the Spanish Stock Market between 2004 and 2014. Findings The findings show that two axes of information quality (i.e. content and management systems) should be necessarily controlled by companies in order to improve their corporate reputation through their CSR reporting. The content axis refers to the compliance of CSR reports with the provision of qualitative, quantitative, and evaluative information concerning the impacts of the CSR of the company on society and the environment. The management systems axis refers to the compliance of CSR reports with the disclosure of details about the policies, plans, and actions that companies implement to assure an effective management of CSR initiatives. Originality/value Previous literature exploring the relationship between corporate reporting and reputation has frequently focused on either the impact of the quantity of financial and CSR information reported by companies and the role of information quality, but only in reference to a number of specific themes (environment, customers) and not to the full range of information covered by CSR reports. The authors of this paper extend on previous academic literature by empirically evaluating the relationship between two dimensions of the information quality of CSR reporting (content and management systems) and the corporate reputation of companies operating in the Spanish Stock Market.

Revolving doors: are they valued in the Spanish stock market?

2016 ◽  
Vol 29 (2) ◽  
pp. 147-164
Author(s):  
J. Emilio Farinós Viñas ◽  
C. José García Martin ◽  
Begoña Herrero Piqueras ◽  
Ana M. Ibáñez Escribano
Keyword(s):  
Stock Market ◽  
Good Governance ◽  
Economic Recession ◽  
Political Connections ◽  
Content Type ◽  
Revolving Doors ◽  
Long Run ◽  
Stock Market Performance ◽  
The Impact ◽  
Spanish Stock Market

Purpose The purpose of this paper is to examine the effect of political connections in the value of companies listed on the Spanish stock market. Design/methodology/approach The authors study two issues on this topic: the impact on the company value of the appointment as director of an ex-politician through an event study; and the long run stock market performance of companies with political connections. The authors employ a sample of listed firms in the Spanish stock market for which the authors collected data about their political connections. The authors perform the study during a wide period (1996-2011), comprising four legislatures. Findings The results show that from the market perspective the value ex-politicians bring to the company outweigh their costs, especially in times of crisis or economic recession. Originality/value Given the concern of regulators and legislators to increase transparency and good governance of companies, this paper shed light on the role that politicians play on the company boards and and their contribution to their value.

Addressing Financial Risks and Uncertainties Through Financial Literacy Education

2019 ◽  
pp. 199-218
Author(s):  
Danielle McKain
Keyword(s):  
Climate Change ◽  
Stock Market ◽  
Financial Literacy ◽  
Financial Stability ◽  
Literacy Education ◽  
Financial Instability ◽  
Financial Risks ◽  
Increased Risk ◽  
The World ◽  
The Impact

The world is full of financial risks and uncertainties even for those who have financial literacy. There are many factors to consider when planning financially: the stock market, hyperinflation, and climate change all play roles and are unpredictable. This chapter will focus on the actions that are being taken to establish financial literacy across the world and the impact these actions have on individual financial stability. Although financial literacy certainly cannot eliminate the risks and uncertainties that accompany unforeseen events, it is one way to prepare for these events. Even in times of normalcy, lack of financial literacy can put individuals at an increased risk of financial instability. This chapter presents a variety of recommendations and resources for financial literacy education as well as the risks and uncertainties that accompany their use.

The Threat of Ponzi Schemes

2019 ◽  
pp. 115-137
Author(s):  
Sourya Mookerjee ◽  
Varun Sardesai
Keyword(s):  
Stock Market ◽  
Financial Stability ◽  
Deep Trap ◽  
Recent Decade ◽  
Developing Regions ◽  
Corporate Fraud ◽  
Market Responses ◽  
Specific Focus ◽  
Depth Study ◽  
The Impact

A flood of corporate fraud has hit the market in the most recent decade, resuscitating attention to the impact of these incidences on corporate administration and stock market responses. Of particular relevance are Ponzi schemes that are considered practically the same as frauds. As more and more investors fall into the deep trap of Ponzi schemes, the situation is getting even more irrepressible. The reasons for a rise in the number of such swindles are mainly attributed to the breakdown in governance in different countries across the globe. This chapter dwells over the root causes of Ponzi schemes with specific focus on Asia and its developing regions. Through an in-depth study of the causes, the chapter looks to recommend possible solutions in mitigating the crisis, steps to ensure financial stability, and prevention of fraud risks.

The Threat of Ponzi Schemes

2021 ◽  
pp. 55-77
Author(s):  
Sourya Mookerjee ◽  
Varun Sardesai
Keyword(s):  
Stock Market ◽  
Financial Stability ◽  
Deep Trap ◽  
Recent Decade ◽  
Developing Regions ◽  
Corporate Fraud ◽  
Market Responses ◽  
Specific Focus ◽  
Depth Study ◽  
The Impact

A flood of corporate fraud has hit the market in the most recent decade, resuscitating attention to the impact of these incidences on corporate administration and stock market responses. Of particular relevance are Ponzi schemes that are considered practically the same as frauds. As more and more investors fall into the deep trap of Ponzi schemes, the situation is getting even more irrepressible. The reasons for a rise in the number of such swindles are mainly attributed to the breakdown in governance in different countries across the globe. This chapter dwells over the root causes of Ponzi schemes with specific focus on Asia and its developing regions. Through an in-depth study of the causes, the chapter looks to recommend possible solutions in mitigating the crisis, steps to ensure financial stability, and prevention of fraud risks.

scholarly journals The Impact of COVID-19 on the Dynamic Topology and Network Flow of World Stock Markets

2021 ◽  
Vol 7 (4) ◽  
pp. 241
Author(s):  
Bilal Ahmed Memon ◽  
Hongxing Yao
Keyword(s):  
Stock Market ◽  
Stock Markets ◽  
Network Flow ◽  
Financial Stability ◽  
Minimum Spanning Tree ◽  
Centrality Measures ◽  
Topological Evolution ◽  
The World ◽  
Tree Length ◽  
The Impact

Studies examining the impact of COVID-19 using network dynamics are scant and tend to evaluate a specific local stock market. We present a thorough investigation of 58 world stock market networks using a complex network approach spanning across the uncertain times that have resulted from the coronavirus outbreak. First, we use the daily closing prices of the world stock market indices to construct dynamic complex networks and sixteen minimum spanning tree (MST) maps for the period from December 2019 to March 2021. Second, we present the topological evolution properties of time-varying MSTs by applying normalized tree length, diameter, average path length, and centrality measures. Moreover, the empirical results suggest that (1) the highest correlation among the world stock markets is observed during the first wave of the COVID-19 pandemic in the months of February–March 2020; (2) most of the MSTs appear lower in hierarchy, and many chain-like structures are formed due to the sheer impact of pandemic-related crises; (3) Germany remained a hub node in many of the MSTs; and (4) the tree severely contracted during the first wave of the COVID-19 outbreak (during the months of February and March 2020) and expanded slightly afterwards. Moreover, the results obtained from this study can be used for the development of financial stability policies and stock market regulations worldwide.

scholarly journals Does US-China Trade War Matter on ASEAN Stock Market: Event-study Approach

2020 ◽  
Vol 4 (3) ◽  
pp. 161
Author(s):  
Budi Setiawan
Keyword(s):  
Stock Market ◽  
Event Study ◽  
Stock Prices ◽  
Financial Stability ◽  
Abnormal Returns ◽  
Study Approach ◽  
China Trade ◽  
The Us ◽  
Trade War ◽  
The Impact

The trade war between the US and China by imposing tariffs has the potential to affect global financial stability. As the largest economy in the world, the US and China had been trading goods and services globally. Then, when these countries have retaliated, the tariff war will affect the global supply chain, international trade, economy, and the stock market. This research examined the effect of the US-China trade war on ASEAN stock prices using an event-study approach. The result shows that the ASEAN stock market has positive abnormal returns during pre-event period (12%). In contrast, ASEAN stock markets shifted to negative abnormal return (-7.4%) in the short-term window, indicating that the stock market is efficient. Stock price reflects the information from the market quickly. However, the impact of the trade war on the ASEAN stock market is insignificant.

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