scholarly journals Turbulence, Firm Decentralization, and Growth in Bad Times

2021 ◽  
Vol 13 (1) ◽  
pp. 133-169
Author(s):  
Philippe Aghion ◽  
Nicholas Bloom ◽  
Brian Lucking ◽  
Raffaella Sadun ◽  
John Van Reenen
Keyword(s):  
Great Recession ◽  
Local Information ◽  
Market Volatility ◽  
Stock Market Volatility ◽  
Firm Organization ◽  
Optimal Form ◽  
The Great Recession ◽  
Coordination Costs ◽  
Local Plant ◽  
Product Durability

What is the optimal form of firm organization during “bad times”? The greater turbulence following macro shocks may benefit decentralized firms because the value of local information increases (the “localist” view). On the other hand, the need to make tough decisions may favor centralized firms (the “centralist” view). Using two large micro datasets on decentralization in firms in ten OECD countries (WMS) and US establishments (MOPS administrative data), we find that firms that delegated more power from the central headquarters to local plant managers prior to the Great Recession outperformed their centralized counterparts in sectors that were hardest hit by the subsequent crisis (as measured by export growth and product durability). Results based on measures of turbulence based on product churn and stock market volatility provide further support to the localist view. This conclusion is robust to alternative explanations such as managerial fears of bankruptcy and changing coordination costs. Although decentralization will be suboptimal in many environments, it does appear to be beneficial for the average firm during bad times. (JEL D22, G12, G32, G34, L23)

Stock Market Volatility and Changes in Financial Risk Tolerance During the Great Recession

2017 ◽  
Vol 28 (1) ◽  
pp. 140-154 ◽  
Author(s):  
Abed G. Rabbani ◽  
John E. Grable ◽  
Wookjae Heo ◽  
Liana Nobre ◽  
Stephen Kuzniak
Keyword(s):  
Great Recession ◽  
Financial Risk ◽  
Risk Tolerance ◽  
Market Volatility ◽  
Stock Market Volatility ◽  
The Great Recession ◽  
Standard And Poor's ◽  
Changes In Risk ◽  
Financial Risk Tolerance ◽  
The Relationship

This study investigated the degree to which the financial risk tolerance of individuals was influenced by volatility in the U.S. equities market during the period of the Great Recession. Based on data from a valid and reliable risk tolerance scale and return information for the Standard and Poor’s (S&P) 500 index, there does appear to be some associations between daily market volatility and changes in risk tolerance scores. Changes in risk tolerance scores were also calculated using short- and intermediate-term volatility measures. The relationships do vary, however, with evidence supporting the relationship only 64% of the time. Overall, changes in financial risk tolerance scores were found to be modest. Although not following hypothesized directions at all times, risk tolerance was not influenced by the length of volatility measurements.

scholarly journals Stock Market Volatility and Recent Crises

2021 ◽  
Vol 11 (3) ◽  
pp. 87
Author(s):  
Xin Tan ◽  
Sorin A. Tuluca
Keyword(s):  
Economic Policy ◽  
Stock Market ◽  
Great Recession ◽  
Economic Effect ◽  
Market Volatility ◽  
Stock Market Volatility ◽  
Policy Makers ◽  
The Great Recession ◽  
The Us ◽  
Before And After

We study the volatility of the US stock market and its sectors as defined by S&P before and after four recent crises: the Mexican crises, the Asian crises, the Dotcom crises and the Great Recession. We compare the increase in daily volatility with the increase in the implied daily volatility (derived from the monthly volatility) to determine if there was a lasting economic effect of each crisis or the increase in volatility was due to financial transitory components. We find that for each crisis the effect was different even though the increase in volatility was present for most of the crises in the post crises period. The paper helps investors and economic policy makers understand what the response to each crisis should be to stabilize the economy.

scholarly journals Have Stock Markets Become Less Volatile After the Great Recession?

2019 ◽  
Vol 10 (3) ◽  
pp. 10
Author(s):  
Talla M Aldeehani
Keyword(s):  
Financial Markets ◽  
Great Recession ◽  
Trading Volume ◽  
Global Financial Crisis ◽  
International Markets ◽  
Market Volatility ◽  
Asymmetric Effect ◽  
The Great Recession ◽  
Valid Predictor ◽  
Before And After

This paper investigates volatility modeling in light of the 2008 global financial crisis. The study was motivated by the measures and regulations introduced by most of the countries following the shock to stabilize their financial markets. The theoretical proposition is that these measures should succeed in reducing volatility which would be modeled differently following the crisis. The adopted ARMA-GARCH process included positive and negative trading volume change to capture the asymmetric effect of trading volume on market volatility for seven international markets. The results indicate that the majority of these markets were not so successful in reducing volatility following the crisis. There is evidence of volatility persistence which dissipates very quickly. Although volatility is modeled differently before and after the crisis, each market is modeled uniquely. The effect of trading volume was found to be asymmetric. Only positive change was a valid predictor. Detailed discussions of the results, implications, and recommendations are provided.

Women and men's employment and unemployment in the great recession

2010 ◽  
Author(s):  
Heidi Hartmann ◽  
Ashley English ◽  
Jeffrey Hayes
Keyword(s):  
Great Recession ◽  
The Great Recession

The great recession and job stress among employed workers

2013 ◽  
Author(s):  
Mark Tausig ◽  
Rudy Fenwick
Keyword(s):  
Job Stress ◽  
Great Recession ◽  
The Great Recession

England after the Great Recession

2012 ◽  
Author(s):  
P. W. Preston
Keyword(s):  
Great Recession ◽  
The Great Recession

Employment exit and entry among U.S. adults with and without arthritis during the Great Recession. A longitudinal study: 2007–2009, NHIS/MEPS

Work ◽  
2018 ◽  
pp. 1-16
Author(s):  
K.A. Theis ◽  
D. Roblin ◽  
C.G. Helmick ◽  
R. Luo
Keyword(s):  
Longitudinal Study ◽  
Great Recession ◽  
The Great Recession
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