scholarly journals Improvement of the Adaptive Properties of the National Financial Market to Respond the Globalization Risks

2021 ◽  
Vol 12 (4) ◽  
Author(s):  
Vadim Loktionov ◽  
Elena Loktionova
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Institutional Environment ◽  
Driving Forces ◽  
Stressful Events ◽  
Market Development ◽  
Financial Security ◽  
Adverse Conditions ◽  
Complex Adaptive ◽  
Financial Market Development

In the era of globalization the issues of ensuring economic and national security are still relevant for discussion. Financial markets, being one of the driving forces for the global economic development, are sensitive to changes in the socio-economic and political situations. In the rapidly changing world, the security of the national financial market can be ensured by increasing its adaptability, which is, in the general case, the market ability to adapt to stressful events, while working in adverse conditions. The article discusses the features of the national financial market in the context of financial globalization. Using the complex adaptive theory, the main ways of the national financial market development to enhance its adaptability are presented. Keywords. Globalization, financial market, financial security, financial market adaptability, institutional environment.

scholarly journals On the Asymmetries of Sovereign Credit Rating Announcements and Financial Market Development in the European Region

2019 ◽  
Vol 11 (23) ◽  
pp. 6636 ◽  
Author(s):  
Chunling Li ◽  
Khansa Pervaiz ◽  
Muhammad Asif Khan ◽  
Faheem Ur Rehman ◽  
Judit Oláh
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Credit Rating ◽  
Market Development ◽  
European Region ◽  
Short Term ◽  
Sovereign Credit ◽  
Financial Market Development ◽  
The Impact ◽  
Sovereign Credit Rating

In modeling the impact of sovereign credit rating (CR) on financial markets, a considerable amount of the literature to date has been devoted to examining the short-term impact of CR on financial markets via an event-study methodology. The argument has been established that financial markets are sensitive to CR announcements, and market reactions to such announcements (both upgrading and degrading) are not the same. Using the framework of an autoregressive distributed lag setting, the present study attempted to empirically test the linear and non-linear impacts of CR on financial market development (FMD) in the European region. Nonlinear specification is capable to capture asymmetries (upgrades and downgrades) in the estimation process, which have not been considered to date in financial market literature. Overall findings identified long-term asymmetries, while there was little evidence supporting the existence of short-term asymmetries. Thus, the present study has extended the financial market literature on the subject of the asymmetrical impact of a sovereign CR on European FMD and provides useful input for policy formation taking into account these nonlinearities. Policies solely based upon linear models may be misleading and detrimental.

Russian Financial Market under State Capitalism

2007 ◽  
pp. 28-44 ◽  
Author(s):  
A. Abramov ◽  
A. Radygin
Keyword(s):  
Growth Model ◽  
Financial Market ◽  
Institutional Environment ◽  
Market Development ◽  
State Capitalism ◽  
Market Growth ◽  
Current State ◽  
Financial Market Development

This article is dedicated to the analysis of the current state and prospects of the financial market development in Russia in the context of formation of the state capitalism model. The authors consider both quantitative positive tendencies and long-term disproportions and risks which are connected with the strengthening of the state’s role in the economy. Special attention is paid to the issues of the quality of the institutional environment and evaluations of the speculative character of the market growth model.

scholarly journals Sovereign Credit Ratings and Asian Financial Markets

2021 ◽  
Vol 24 (1) ◽  
pp. 165-181
Author(s):  
Khansa Pervaiz ◽  
Zuzana Virglerová ◽  
Muhammad Asif Khan ◽  
Usman Akbar ◽  
József Popp
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Credit Rating ◽  
Credit Ratings ◽  
Market Development ◽  
Sovereign Credit ◽  
Sovereign Credit Ratings ◽  
Financial Market Development ◽  
Sovereign Credit Rating

Each region/country seeks to become more efficient to gain the confidence of potential investors. Most of the Asian economies are categorized as emerging markets, where the role of financial markets has even become more intensified to provide financial services to increasing economic and financial activities. Asian financial market has momentously suffered during the Asian, and global financial crisis. The mass destruction was mainly caused due to the mounting uncertainty, which spillover throughout the region, where investors lost their confidence. Considering the pivotal economic role of financial markets, and implications evolve due to sovereign credit rating announcements, this study aims to model the role of sovereign credit rating announcements by Standard and Poor’s, and Moody’s on financial market development of the Asian region. For 24 Asian countries/regions, we perform a regression analysis on sovereign credit rating changes based on financial market development index and its factors. The findings of Driscoll Kraay’s robust estimator reveals that improvement in sovereign credit rating score enhances the financial market development in the region. Moreover, we applied several robustness checks, such as alternative estimators, alternative measures, and three sub-dimensions of financial market development. According to the findings from these robustness checks, the positive impact of sovereign credit ratings on financial market development in the region is robust. Unlike prior literature (which is confined to the event study approach), this study utilizes the historical grades to establish the relationship under the standard error clustering approach. Due to the diversity of investors’ speculations, we propose a micro-level extension of the present model to overcome a difference in country policy.

scholarly journals A Theoretical Conceptualization of Institutional Provision of the Financial Market

2020 ◽  
Vol 9 (512) ◽  
pp. 219-228
Author(s):  
S. V. Onyshko ◽  
◽  
D. O. Savenko ◽  
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Legal Framework ◽  
Financial Resources ◽  
Market Development ◽  
Market Participants ◽  
Financial Market Development ◽  
Relationship Of ◽  
The Relationship ◽  
Theoretical Conceptualization

The article is concerned with the problems of formation and development of institutional provision of the financial market. The relevance of the problem is caused by the relationship of formal and informal norms of economic processes and phenomena, the understanding of which provides the key to achieving the effectiveness of the financial market development. Understanding the essence of institutional provision of the financial market and the factors of its formation and development makes it possible to make more informed and effective decisions in the sphere of financial market development. The article is aimed at substantiating the conceptual approaches to the structuring of institutional provision of the financial market. It is substantiated that institutional provision of the financial market includes both formal and informal institutions. The formal institutions, in turn, consist of institutions-organizations and institutions-norms. The factors of occurrence of institutional deformations in the financial market are systematized. The institutions of the financial market are structured, in particular, in the composition of the institutions-norms the authors allocate the formal (international legal framework for concluding and implementing agreements in financial markets, national regulatory framework for concluding and implementing agreements in financial markets, norms of related national and international law, ensuring the conclusion and implementation of agreements in financial markets) and the informal norms (norms stipulated by religion, informal agreements and conspiracies between the financial market participants, unofficial (shadow) markets for the conclusion and implementation of financial agreements). In the composition of institutions-organizations the authors allocate the institutions-buyers of financial resources; institutions – sellers of financial resources; institutions that serve the functioning of institutions-sellers and institutions – buyers of financial resources; institutions-regulators. The institutional provision of the financial market is structured and the relationship between institutions-norms, institutions-rules and the State is defined. The principles of institutional provision of the financial market are substantiated and its functions are defined.

scholarly journals Analysis of the Role of Macroeconomic Policies in the Financial Market Development

2020 ◽  
Vol 9 (3) ◽  
pp. 149
Author(s):  
Haisheng Hu
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Market Development ◽  
Macroeconomic Policies ◽  
The Status ◽  
Financial Market Development

<p>Macroeconomics and microeconomics are two different categories of national economics, and both play vital roles in stimulating the economy. Especially in financial market development, they are interdependent and complement one another. Therefore, by starting with the status of national macroeconomic policies, this article analyzes the role of macroeconomic policies in the development of financial markets, and analyzes the practical cases, which can provide reference for the applied policies in the current financial market.</p>

Coalitional Dynamics, Power Structure and Financial Markets in East Asia

2014 ◽  
Vol 49 (3) ◽  
pp. 511-541 ◽  
Author(s):  
Xiaoke Zhang
Keyword(s):  
Financial Markets ◽  
East Asia ◽  
Financial Market ◽  
Market Development ◽  
Political Elites ◽  
Power Structures ◽  
Financial Market Development ◽  
Market Practices ◽  
East Asian Economies ◽  
Dominant Coalitions

The main argument to be developed in this article posits that fundamental changes and variations in the financial market structure of East Asian economies have been predicated on the emergence and configuration of the dominant coalitions. The coalitions have been forged by private market agents, economic policymakers and political elites who have developed particular interests in financial market changes as a response to economic and political imperatives both at home and abroad. In East Asia, the dominant coalitions that have borne crucially on regulatory rules and market practices have differed in the policy preferences of key actors in the coalitions and the power structures of these coalitions. It is these differences that have exerted divergent shaping influences on financial market development.

Financial Market Reform in Pakistan

1997 ◽  
Vol 36 (4II) ◽  
pp. 839-854 ◽  
Author(s):  
Mahmood Hasan Khan
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Emerging Economies ◽  
Capital Accumulation ◽  
Financial Sector ◽  
Multiple Roles ◽  
Market Development ◽  
Stock Market Development ◽  
Financial Market Development

The paper argues that the finance dimension of economic development has often been treated as an aftellhought by researchers and politicians alike, because it is considered to be too "sophisticated" to matter for "simple" economies. The role of the financial sector was considered to be primarily for mobilising resources to increase growth. However, expclicnce has also revealed that financial development, including stock market development, is correlated with current and future economic growth, capital accumulation, and productivity improvements. It is suggested that a strategy for financial market development in emerging economies is better evolved from the perspective of the "functions" of financial markets as envisaged in modern financial literature. It is also argued that financial sector policies in emerging economies should focus on enhancing, rather than inhibiting, the multiple roles of financial markets.

The role of local financial market on economic growth

2016 ◽  
Vol 7 (2) ◽  
pp. 225-240 ◽  
Author(s):  
Rafiu Adewale Aregbeshola
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Financial Markets ◽  
Financial Market ◽  
Social Stress ◽  
Developing Economies ◽  
Market Development ◽  
Content Type ◽  
Financial Market Development

Purpose – Capital market development has been identified as one of the critical underpinnings of economic growth, in the developed but more essentially in the developing economies. Evidence abounds on the virtues of adequately spanned capital markets to provide requisite capital needed to fund investment activities as well as infrastructural developments. Although, foreign capital may be sourced to supplement inadequate local capital base, the associated costs (both logistics and supervisory) are generally daring to consider as convenient alternatives. Various studies have examined the role of local financial market development on economic growth, but none have strictly generated a combined focus on the three major African groupings – the Southern, the Western and the Northern African regions. In addition, there is no documented study that has compared the economic performance of each of these three major economic groupings in Africa. The purpose of this paper is to fill these voids. Design/methodology/approach – Various econometric techniques that include descriptive statistics, unit root tests, dynamic panel estimations and Granger causality tests. Findings – Using data generated from the African development indicators between 1980 and 2012 in contemporary econometric estimations, this study finds that local financial markets play crucial roles in economic development of each of these groupings, albeit in varying magnitude. The study also observes that local financial market plays very little role in the overall economic development of the three groupings when interacted. Research limitations/implications – A limited dataset, which reduces the time span as well as the number of countries covered in the study. A wider coverage may have altered the result generated, especially for the pooled estimation. Practical implications – That African countries should develop local financial markets in order to improve their level of economic growth. Social implications – Low rate of economic development has created a lot of social stress in Africa. Further, the fact that African leaders have largely not been able to grow their national economies in a meaningful and sustainable manner further unnerves skittish entrepreneurial underdevelopment on the continent, thereby exacerbates incidence and prevalence of poverty, and consequent social uprisings on a number of occasions. Originality/value – This study finds that financial market plays an important role on economic growth, whereas the effects are lower in the Southern African region. More specifically, the effects of financial market development on economic growth are stronger in North and West Africa than in Southern African regions. Given that Southern Africa financial market is more developed than the other two regions, this finding buttresses the fact that financial market development is significantly more important as a growth-driver in less developed financial markets than in developed ones.

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