scholarly journals IMPACT OF FINANCIAL CRISES ON THE DYNAMICS OF CAPITAL STRUCTURE: EVIDENCE FROM KOREAN LISTED COMPANIES

2019 ◽  
pp. 1950049
Author(s):  
TSOY LYUBOV ◽  
ALMAS HESHMATI
Keyword(s):  
Financial Crisis ◽  
Economic Crisis ◽  
Listed Companies ◽  
Asian Financial Crisis ◽  
Tax Shield ◽  
Industrial Sectors ◽  
Global Economic Crisis ◽  
High Level ◽  
Optimal Leverage ◽  
The Impact

This study examines the impact of the 1997 Asian financial crisis and the 2008 Global economic crisis on the capital structures of Korean non-financial listed companies. Using a panel data covering 1,159 Korean listed non-financial firms from 10 industrial sectors over a 31-year period (1985–2015), this study investigates the patterns of firms’ capital structures before and after the crises and identifies their speeds of adjustment toward the optimal leverage. This study finds different effects of the two crises on both capital structures and adjustment speeds. The average debt ratio fell significantly after the 1997 Asian financial crisis. The distance between the optimal and the observed debt ratios shrank after the Asian crisis, while the speed of adjustment increased two-fold. Unlike the Asian financial crisis, the global economic crisis of 2008 had a positive effect on companies’ debt ratios and the speeds of adjustments toward the optimal leverage. Our empirical analysis shows that, on average, the Korean non-financial listed companies decreased their debt ratios over the entire period of observation, with the leverage being the highest before the Asian financial crisis and lowest after the global economic crisis. Our results also show that the debt ratios of Korean chaebols were higher than that of non-chaebols. Moreover, we find that the high level of leverage of Korean firms was associated with tangible assets, income variability, size and age of the firm, non-debt tax shield and uniqueness.

The Impact of the Asian Financial Crisis on Foreign Workers in Taiwan

1998 ◽  
Vol 7 (2-3) ◽  
pp. 145-169 ◽  
Author(s):  
Joseph S. Lee
Keyword(s):  
Labor Market ◽  
Financial Crisis ◽  
Economic Crisis ◽  
Construction Projects ◽  
Economic Structure ◽  
Asian Financial Crisis ◽  
Foreign Workers ◽  
Skilled Workers ◽  
The Future ◽  
The Impact

Having experienced an economic crisis earlier, Taiwan was on its way to recovery when the crisis struck in 1997. In general, Taiwan's labor market was hardly affected by the crisis. Although the demand for foreign workers continues, there will be a decline in the employment of foreign workers in the future. The completion of construction projects and the upgrading of the economic structure would imply a lesser demand for foreign workers in the next few years. In the future, while the Taiwanese labor market would be more restrictive of less-skilled workers, it would be more open to professionals and highly skilled.

scholarly journals The Global Economic Crisis and its Effects on the Monetary Policy of Turkey

2012 ◽  
Author(s):  
Serdar Öztürk ◽  
Ali Sözdemir ◽  
Özlem Ülger
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Economic Crisis ◽  
Large Scale ◽  
Debt Crisis ◽  
Developed Countries ◽  
The United States ◽  
The World ◽  
Global Economic Crisis ◽  
The Impact

Capitalism has faced the most severe and the longest crisis since 1929. Resource of the emerging financial crisis in the second half of 2007 was mortgage crisis that experienced in the United States. The collapse of housing market has caused great instability in the financial markets and then turned into the strong liquidity crisis and spread all over the world. The impact of global economic crisis on the world economies in the last quarter of 2008 was very fast and it occured in a devastating way. In this process, the asset prices declined, capital of financial institutions seriously damaged and this caused bankruptcy of many large financial organizations such as Lehman Brothers. In this context, the growth rates in the world fell down quickly, external demand contraction and global export decreased. At this point, developed countries applied large scale financial incentive packages. Especially, the Central Banks of developed countries have provided exceptional levels of liquidity that is used as a monetary policy tool by taking the risk of deterioration of their balance sheets. During this period, as a result of these policies followed by money and finance authorities have changed only the shape of global crisis and as a result the financial crisis has turned into a debt crisis. The effects of Global Economic Crisis on the Turkish economy emerged prominently in the last quarter of 2008. However, in comparison with many European countries, it is clear that all dynamics have became more favourable for Turkey after 2010.

IMPACT OF COVID-19 ON THE GLOBAL ECON

2020 ◽  
Vol 3 (11) ◽  
pp. 126-131
Author(s):  
M. P. VAKHROMEEVA ◽  
Keyword(s):  
Economic Crisis ◽  
Global Economic Crisis ◽  
World Economic ◽  
Coronavirus Infection ◽  
National Economies ◽  
The Impact

The article examines the impact of the coronavirus infection COVID-19 on world economic processes, analyzes the ways out of the global economic crisis, analyzes approaches to the restoration of national economies.

scholarly journals The impact of the financial crisis on earnings management: Empirical evidence from Italian and Spanish listed companies

2019 ◽  
Vol 16 (2) ◽  
pp. 121-130 ◽  
Author(s):  
Francesco De Luca ◽  
Francesco Paolone
Keyword(s):  
Financial Crisis ◽  
Financial Markets ◽  
Performance Indicators ◽  
Listed Companies ◽  
Publicly Traded ◽  
Publicly Traded Companies ◽  
Time Period ◽  
Security Offerings ◽  
The Impact ◽  
Giving Bad News

Our study adopts a reliable and widely acknowledged model to detect accounts manipulation in order to assess the impact of the financial crisis on Italian and Spanish listed companies’ propensity to manage their earnings. The analysis is conducted on 565 publicly traded companies on the Italian and Spanish financial markets during the time period 2005-2013. We find a lower propensity to manipulate earnings in both countries during the pre-crisis period (2005-2008) as suggested by a decrease in the number of high-risk manipulators until 2008 included. With the spread of the financial crisis, companies become more manipulators. We believe that the reason for this is to avoid giving bad news to markets, investors, and lenders after that the crisis may have impacted too negatively on firms’ performance indicators and financial equilibrium. Our empirical results provide various implications for further studies related to managements’ incentives concurrently with security offerings.

scholarly journals Anti-crisis state regulation of business under pandemic conditions: results and challenges

2021 ◽  
Vol 187 (1-2) ◽  
pp. 90-98
Author(s):  
Nadezhda Shchukina ◽  
◽  
Victoria Varfalovskaya ◽  
Anna Bekaeva ◽  
Luis Salinas ◽  
...  
Keyword(s):  
Economic Crisis ◽  
State Regulation ◽  
Critical Situation ◽  
Global Economic Crisis ◽  
The Government ◽  
Medium Businesses ◽  
The Impact

The purpose of the research is to identify the main trends and also a model for businesses during COVID-19 pandemic. We focuse on the study of the results of state regulation of business under pandemic conditions and the related global economic crisis. The impact of a number of anti-crisis measures implemented by the Government to support small and medium businesses is studied. The problems of development and survival of enterprises in a down economy are identified and the solutions are suggested. The measures taken by the government to prevent wave of bankruptcies during the pandemic are analyzed. The scenario problems facing the business in the context of COVID-19 crisis are identified. In addition to examining the effect of COVID-19 on small and medium-sized businesses, this article also suggests operational steps to overcome this critical situation.

scholarly journals The Impact of Domestic and Foreign Environment on China’s EconomicDevelopment

2020 ◽  
Vol 1 (1) ◽  
Author(s):  
Mengya Cao
Keyword(s):  
Financial Crisis ◽  
Economic Crisis ◽  
World Economy ◽  
Industrial Structure ◽  
Negative Impact ◽  
Economic Losses ◽  
The World ◽  
World Economic ◽  
Short Time ◽  
The Impact

In recent years, the financial crisis has affected the economies of all countries in the world. At that time, it seriously restricted the development of the world economy. From a modern perspective, the difficult period of the world economic crisis caused by the financial crisis has passed, but the negative impact of the economic crisis can not be eliminated in a short time. Dispersed, the crisis has brought both opportunities and challenges to the country as well as heavy economic losses. Under the background of economic globalization, only by making a scientific and effective analysis of the world economic situation and keeping up with the trend of the world economy, can we effectively promote the domestic economic development and industrial structure, and enable our economy to develop healthily and substantially.

scholarly journals Measuring Economic Development and the Impact of Economic Globalisation

2020 ◽  
Vol 15 (3) ◽  
pp. 185-207
Author(s):  
Roukanas Spyros
Keyword(s):  
Political Economy ◽  
Economic Development ◽  
Economic Crisis ◽  
Field Of Study ◽  
Global Political Economy ◽  
Development Index ◽  
Global Economic Crisis ◽  
National Economies ◽  
The Impact ◽  
Economic Globalisation

Abstract The aim of this article is to measure economic development and the impact of economic globalisation under the prism of global political economy. Global political economy is a field of study that has its roots in international relations. The growth of world economic transactions after the collapse of the Bretton Woods system in the 1970s created the need for a new field of study, in order to explain the interdependence between politics and economics on the international level. Global political economy is the field of study that also examines the implications of economic globalisation for national economies and for the global economy. The concept of economic development is broader than economic growth, which is related to GDP growth. The concept of economic globalisation has changed the prospects of economic development for certain developed and developing economies. The main changes of economic globalisation are closely related to the following aspects of national economies: trade, finance, and production. The analysis of this article will reveal the effects of economic globalisation on different aspects of economic development. These aspects are studied under the prism of indexes such as Financial Development Index, openness to trade, Human Development Index, the GINI Index and other inequality indexes. The aftermath of the global economic crisis of 2007-2008 placed at the epicentre the interdependence of national economies and the issue of economic inequalities. The study of the aforementioned indexes will highlight the alterations that have occurred from the manifestation of the global economic crisis until today. The article is focusing on the following countries: China, Germany, Greece, and the United States for the last decade (2009-2019), on the basis of the available data.

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