scholarly journals The determinants of capital structure: the evidence from the European Union

2013 ◽  
Vol 61 (7) ◽  
pp. 2533-2546 ◽  
Author(s):  
Natalia Mokhova ◽  
Marek Zinecker
Keyword(s):  
European Union ◽  
Capital Structure ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Debt Crisis ◽  
The European Union ◽  
Growth Opportunities ◽  
Advantages And Disadvantages ◽  
Tax Shields ◽  
New Eu Members

The aim of this study is to indicate the influence of several internal determinants on capital structure in different European countries and retrace its tendency taking into consideration the membership of the European Union. Nowadays there are a lot of debates according the future of the European Union. The recent global financial crisis and the following European debt crisis show the significance of the country financial stability and its impact on the private sector. The paper investigates 32 countries of European Union dividing them into three groups as (1) old EU members (15 countries), (2) new EU members (12 countries) and (3) EU candidates (4 candidate countries and 1 acceding country).The managers make their financial decisions according to the source of financing and capital structure based on the macroeconomic conditions and country specifics and obviously on company’s advantages and disadvantages, i.e. its internal characteristics. Based on the analysis of previous studies we have chosen several significant internal determinants of capital structure as profitability, tangibility, growth opportunities, non-debt tax shields and firm’s size.The findings show that the country’s specifics, EU membership and corporate debt structure influence the relation between capital structure and its internal characteristics. The capital structure in all countries has tendency to increase, furthermore the old members rely more on debt then candidates or new members.There is no doubt that the majority of countries support Pecking Order Theory then Trade off Theory regarding investigated relations. In most countries the profitability and size have negative and significant influence on corporate capital structure. At the same time tangibility, growth opportunities and non-debt tax shields split up: selected countries experience positive impact, another part negative, supporting different theories.

scholarly journals Assessment of the European banking regulatory framework in light of its significance for the Republic of Serbia

Bankarstvo ◽  
2020 ◽  
Vol 49 (3) ◽  
pp. 77-101
Author(s):  
Kristijan Ristić ◽  
Aleksandar Živković
Keyword(s):  
European Union ◽  
Financial Markets ◽  
Financial Stability ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Debt Crisis ◽  
Regulatory Framework ◽  
Banking Union ◽  
The European Union ◽  
The Eu

The debt crisis in the European Union is known to be caused by the interdependence of banking and state financial stability, and, together with the non-existence of the fiscal union, it has taken on the existential dimensions of the EU project itself. Under the guise of financial fragmentation within the financial markets of the Eurozone, and from the aspect of the outbreak of the crisis, EU member states resorted to national interventions, thus closing national banking and financial markets, which ultimately resulted in deepened and stronger structural foundation of the crisis and its economic and financial consequences. In that context, the Banking Union is the regulatory and institutional response of the EU after the global financial crisis, about which the first proposals have found a place in institutional controversies since 2012. In addition to the key moment and motive for establishing such an institutional regulatory arrangement, the reason for its creation is more to create a union that is connected with the creation of a single market for financial services and free money circulation, and certainly with the tendency of fuller monetary integration. However, certain questions which arose remained relevant to date: whether these established and instrumentalized frameworks, mechanisms and procedures are in fact sufficient; whether the EU banking union, conceptually designed, really represents banking integration; and whether the "centralized-common" and "sovereign-national" relationships continued in the EU financial architecture, the use of the principle "one measure for all" in the implementation of the Basel III, non-inclusion of all types of banks, and the conflict of emission and supervisory roles of the Central Bank, be a structural conflict in achieving the desired financial stability, which is the ultimate goal. In the broader context of the functioning of the EU, financial stability can also be interpreted as a factor in the survival of the common currency and the European Union itself, regardless of the intertwined contradictions and construction conflict. In this paper, we analyze the functional scope of the regulatory framework for banking supervision in the EU during the five-year existence to date, and finally the effects and impact that this framework has had on the regulatory adjustment of the Serbian banking sector.

The European Union Financial Crisis: A Critical Analysis

2021 ◽  
Author(s):  
Caner Bakir ◽  
Mehmet Kerem Coban ◽  
Sinan Akgunay
Keyword(s):  
European Union ◽  
Financial Crisis ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Debt Crisis ◽  
The United States ◽  
Policy Coordination ◽  
Institutional Setting ◽  
The European Union ◽  
Institutional Reforms

The Global Financial Crisis, which originated in the United States, developed into a sovereign debt crisis in Europe, particularly the Eurozone. The Eurozone crisis was driven mainly by divergence in macroeconomic structures, fiscal indiscipline, and financial integration with fragmented regulatory and supervisory governance arrangements. The crisis also exposed flaws in the institutional design of the Economic and Monetary Union (EMU). The EMU lacked mechanisms of effective crisis prevention and management and fiscal coordination, had a centralized monetary policy despite divergence in the macroeconomic structure and institutional setting across member states, and adopted a “light touch” approach to financial regulation. In response, crisis-hit countries implemented structural reforms and public spending cuts. European Union (EU) leaders attempted to address these deficiencies with institutional reforms at the national and regional level. Policy responses and institutional reforms have led to populist backlash with declining trust in regional and domestic politics and organizations, with voters favoring more inward-looking, nationalist political parties. Within this context, the Eurozone and EU face further challenges to maintain macroeconomic and financial stability and to ensure intraregional policy coordination.

scholarly journals Comparative Analysis of Financial Stability Policy of The National Bank of Serbia and The European Central Bank

2015 ◽  
Vol 53 (2) ◽  
pp. 142-161
Author(s):  
Mirjana Jemović ◽  
Borko Krstić
Keyword(s):  
European Union ◽  
Financial Services ◽  
Financial Stability ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
System Stability ◽  
The European Union ◽  
National Bank ◽  
The Global Financial Crisis ◽  
The Eu

AbstractThe Republic of Serbia has successfully completed the first part in the European Union integration process, being granted candidate status for membership in the European Union (EU). The stage of accession negotiations is in progress, and it includes the full harmonization with the EU acquis, whereby the analytical review of legislation, the so-called screening is being carried out in 35 chapters. The global financial crisis that affected our country in 2008 has required a timely reaction of the National Bank of Serbia (NBS) in order to preserve the financial system stability, especially the banking sector as its most important segment. As the financial services sector adjusts within chapter 9, the aim of this paper is to assess the level of compliance of national legislation with the EU legislation regarding banking sector. Along with the regulatory initiatives in the field of preserving financial stability in the EU countries, the NBS has paid great attention to the harmonization of its financial stability policy with the financial stability policy of the European System of Central Banks (ESCB).

scholarly journals Institutional Arrangement for Macroproprudential Policy – On Differences Across the EU Countries

2018 ◽  
Vol 21 (2) ◽  
pp. 37-49 ◽  
Author(s):  
Anna Matysek-Jędrych
Keyword(s):  
European Union ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Institutional Arrangement ◽  
Safety Net ◽  
The European Union ◽  
Macroprudential Policy ◽  
Eu Countries ◽  
European Union Countries ◽  
The Eu

There is a growing consensus among both economists‑academics and policymakers that there was at least one missing element of the financial safety net during the Global Financial Crisis. This element, which will probably improve financial stability (or protect against financial instability), is the macroprudential orientation in regulatory and supervisory frameworks. The main scope of the paper is the institutional dimensions of macroprudential policy. The principal purpose of the paper is to identify and assess, on a comparative, cross‑EU‑country basis, existing practices and developments in structuring a new dimension of the financial stability policy, i.e., a macroprudential one. The paper builds on existing theoretical considerations and the author’s own empirical survey of country practices in applying a macroprudential framework. A comparative, cross‑country analysis and a comparison of different sub‑indices and overall index values are the basis for verifying hypotheses and empirically disentangling the institutional differences between macroprudential policy regimes in European Union countries. The paper sheds light on recent trends in macroprudential policy governance and qualitative aspects (democratic accountability and transparency), with special attention to the position of a central bank across the European Union countries. The conducted research is a basis for constructing ratings of macroprudential authority accountability and transparency across the EU countries, which gives an indication of the overall quality of the institutional arrangements.

scholarly journals How the Debt Crisis Exposes the Development of Solidarity in the Euro Area

2013 ◽  
Vol 9 (1) ◽  
pp. 7-36 ◽  
Author(s):  
Vestert Borger
Keyword(s):  
European Union ◽  
Euro Area ◽  
Financial Stability ◽  
Debt Crisis ◽  
The European Union ◽  
Legal Concept ◽  
Court Of Justice ◽  
European Stability Mechanism

Concept of solidarity – Factual vs. normative solidarity – Development of solidarity in the euro area – Transition from negative to positive solidarity – Solidarity as a legal concept – European Stability Mechanism – European Financial Stabilisation Mechanism – European Financial Stability Facility – Pringle judgement of the Court of Justice of the European Union – ECB bond-buying programmes

scholarly journals DEFINING “FINANCIAL STABILITY”

2019 ◽  
Vol 7 (1) ◽  
pp. 9
Author(s):  
Stanisław Stefaniak
Keyword(s):  
European Union ◽  
Financial Markets ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Central Banks ◽  
Legal Analysis ◽  
The European Union ◽  
Policy Documents ◽  
The Global Financial Crisis ◽  
Financial Regulatory

After the Global Financial Crisis (GFC) of 2008 the term “financial stability” rose to prominence in financial regulatory circles. The paper employs methodological tools from political economy, discourse analysis and comparative legal analysis to track the trajectory of this rise in the narratives of scholarship on financial law, policy documents and relevant European legislation and finds that the meaning of the term is subject to change and malleable. It is argued that the substance of financial stability can only be deciphered once the broader ideas about the functioning of financial markets and roles of central banks are taken into context. It is then established that these ideas were redefined in the aftermath of the GFC in line with the new macroprudential paradigm, and how they came to inform subsequent policies and legislation in the European Union.

The Future of the European Union

2015 ◽  
Vol 15 (2) ◽  
pp. 213-230 ◽  
Author(s):  
Scheherazade Rehman
Keyword(s):  
European Union ◽  
Sovereign Debt ◽  
Market Failure ◽  
Global Financial Crisis ◽  
Debt Crisis ◽  
Stress Test ◽  
The European Union ◽  
Fiscal Discipline ◽  
Political Issues ◽  
National Economic

The European Union (EU) currently comprised of 28 countries is heralded as the single most ambitious voluntary supra-national economic, trade and monetary arrangement in recent modern history. The initial impetus of this arrangement began in 1951 with The Coal and Steel Union amongst Germany, France, Belgium, Luxemburg, Netherlands, and Italy and it continues to evolve today. The most ambitious part of this arrangement is the economic and monetary union (EMU) of 19 EU members countries called the Eurozone. This grand experiment has recently faced its biggest stress test with a double dip recession – the 2008 global financial crisis and the 2010+ European sovereign debt crisis. While many experts focused on the lack of fiscal union to resolve the Eurozone’s current problems, the issues are more complex. Systemic risk in Eurozone originates in part from three principal areas: political issues, lack of a fiscal discipline enforcement mechanism, and market failure.

scholarly journals Kryzys zadłużeniowy w strefie euro w latach 2010‑2018

Politeja ◽  
2020 ◽  
Vol 17 (3(66)) ◽  
pp. 29-52
Author(s):  
Janusz Józef Węc
Keyword(s):  
European Union ◽  
Global Financial Crisis ◽  
Debt Crisis ◽  
System Reform ◽  
The European Union ◽  
Research Questions ◽  
Aid Programs ◽  
The Global Financial Crisis ◽  
High Level ◽  
The International Monetary Fund

The Debt Crisis in the Eurozone in Years 2010‑ 2018. Genesis, Dynamics and Tools to Overcome the Crisis The global financial crisis significantly contributed to the outbreak of the Eurozone debt crisis in 2010 and exposed the institutional weaknesses of the entire zone that had existed since its inception. In 2010‑2018, the European Union focused essentially on four basic forms of crisis management in the Eurozone: financial support for indebted economies, aid programs for crisis‑stricken countries, measures by the European Central Bank to overcome the crisis and system reform of the Eurozone and the Economic and Monetary Union. The research objective of the article is to analyze the dynamics of the debt crisis in the Eurozone. The author would like to answer the following research questions: How much have the aid programs of the European Union and the International Monetary Fund contributed to overcoming the debt crisis? Has this crisis really been overcome? How deep were the structural reforms of the indebted economies? The author also defines the research hypothesis that the debt crisis in the Eurozone has not been finally overcome, since in many countries government debt is still on a high level.

Financial Stability as the Objective of the Banking Union

2020 ◽  
Vol 17 (2) ◽  
pp. 155-183
Author(s):  
Jonathan Bauerschmidt
Keyword(s):  
European Union ◽  
Financial Stability ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Banking Union ◽  
Sovereign Debt Crisis ◽  
The European Union ◽  
Legislative Measures

The European financial and sovereign debt crisis has fundamentally transformed the banking landscape in the European Union. In order to break the dependence between banks and sovereigns, the European legislator has created a Banking Union. The objective of these legislative measures is financial stability. How can this term be understood and what is the significance of financial stability for the Banking Union? This contribution aims to answer these questions

Ocena antykryzysowej polityki gospodarczej Stanów Zjednoczonych i wybranych państw członkowskich Unii Europejskiej w latach 2005–2014

2016 ◽  
pp. 26-46
Author(s):  
Marcin Jan Flotyński
Keyword(s):  
United States ◽  
European Union ◽  
Financial Markets ◽  
Global Economy ◽  
Global Financial Crisis ◽  
The United States ◽  
The European Union ◽  
High Volatility ◽  
The Global Financial Crisis ◽  
Domestic Products

The global financial crisis in 2007–2009 began a period of high volatility on the financial markets. Specifically, it caused an increased amplitude of fluctuations of the level of gross domestic products, the level of investment and consumption and exchange rates in particular countries. To address the adverse market circumstances, governments and central banks took actions in order to bolster the weakening global economy. The aim of this article is to present the anti-crisis actions in the United States and selected member states of the European Union, including Poland, and an assessment of their efficiency. The analysis conducted indicates that generally the actions taken in the United States in response to the crisis were faster and more adequate to the existing circumstances than in the European Union.

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