scholarly journals The endogeneity of optimum currency area criteria in the context of financial crisis: Evidence from the time-frequency domain analysis

2013 ◽  
Vol 59 (No. 9) ◽  
pp. 389-395 ◽  
Author(s):  
S. Kapounek ◽  
J. Poměnková
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Frequency Domain Analysis ◽  
Time Frequency ◽  
Real Convergence ◽  
Convergence Process ◽  
Recent Financial Crisis ◽  
The Global Financial Crisis ◽  
Value Decomposition ◽  
Optimum Currency

We provide the wavelet analysis of the economic cycle synchronization during the recent financial crisis. However, the global financial crisis caused economic cycles in most European countries to become more strongly synchronized without increasing of the real convergence process. Our contribution is an application of the singular value decomposition to identify and remove the long-term trend including outliers appearing in the year 2007–2010. We found that the historically greater integration provides more highly synchronized cycles in the core Euro area member countries.  

scholarly journals Evolution of German corporate governance (1995-2014): an empirical analysis

2019 ◽  
Vol 19 (5) ◽  
pp. 1042-1062
Author(s):  
Andreas Rühmkorf ◽  
Felix Spindler ◽  
Navajyoti Samanta
Keyword(s):  
Corporate Governance ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Governance System ◽  
Content Type ◽  
Convergence Process ◽  
Corporate Governance System ◽  
Anglo American ◽  
The Stability ◽  
The Global Financial Crisis

Purpose This paper aims to address the evolution of corporate governance in Germany with a particular regard to whether there can be observed a gradual convergence to a shareholder primacy corporate governance system. Design/methodology/approach To investigate a potential shift of the German corporate governance system to an Anglo-American tiled corporate governance system, the authors have empirically assessed on a polynomial base 52 separate company and corporate governance variables for 20 years (1995-2014). Findings This research suggests that a gradual convergence has taken place prior to the global financial crisis. However, the results suggest that the convergence process experienced a slowdown in the aftermath of the global financial crisis, which may be linked to the stability of the German corporate governance system during the global financial crisis and the political environment during this time. Originality/value This paper contributes to the research by not only analysing the development of the German corporate governance system but also identifying new reasons for this development and explaining why a new convergence process may be observed in the future again.

scholarly journals Exporters in the Financial Crisis

2014 ◽  
Vol 228 ◽  
pp. R49-R57 ◽  
Author(s):  
Holger Görg ◽  
Marina-Eliza Spaliara
Keyword(s):  
Financial Crisis ◽  
Firm Growth ◽  
Global Financial Crisis ◽  
Export Market ◽  
Growth And Survival ◽  
Financial Variables ◽  
Large Panel ◽  
Recent Financial Crisis ◽  
The Global Financial Crisis ◽  
Participation Decisions

Using a large panel of UK manufacturing firms over the period 2000–9, we consider how firms responded during the most recent financial crisis, estimating models for export market participation decisions and firm growth and survival. The results indicate that financial variables are highly important in predicting export market entry, especially in the midst of the global financial crisis. With respect to firm growth and survival, we find that starters and continuous exporters are more likely to perform well in and out of the crisis than non-exporters.

Corporate Governance and Risk Aggressiveness of Islamic Banks Against the Recent Financial Crisis

2019 ◽  
Vol 37 (3) ◽  
pp. 171
Author(s):  
Talat Ulussever
Keyword(s):  
Corporate Governance ◽  
Financial Crisis ◽  
Risk Taking ◽  
Global Financial Crisis ◽  
Banking System ◽  
Islamic Banks ◽  
Governance Mechanism ◽  
Motivating Factors ◽  
Recent Financial Crisis ◽  
The Global Financial Crisis

This study examines whether the multi-layer corporate governance mode of Islamic banking system can prevent Islamic banks from excessive risk taking and hence protect against its fallibility to the global financial crisis. Employing the random-effects GLS method with two-step GMM method for the robustness check and using the dataset of total 154 banks over the period of 2005–2011, the results show that the corporate governance and financial disclosure indices appear as the motivating factors for risk taking attitudes of Islamic banks. Thus, the governance mechanism of Islamic banks is effective in protecting them against their fallibility to the global financial crisis.

scholarly journals A Wavelet Perspective of Crisis Contagion between Advanced Economies and the BRIC Markets

2021 ◽  
Vol 14 (10) ◽  
pp. 503
Author(s):  
Constantin Gurdgiev ◽  
Conor O’Riordan
Keyword(s):  
Wavelet Transform ◽  
Financial Crisis ◽  
Continuous Wavelet Transform ◽  
Global Financial Crisis ◽  
Continuous Wavelet ◽  
Time Frequency ◽  
Volatility Spillovers ◽  
Advanced Economies ◽  
Market Shocks ◽  
The Global Financial Crisis

This paper investigates the relationship between the BRICs’ and the advanced economies’ stock markets from 2000 to 2016 utilizing continuous wavelet transform. The continuous wavelet transform allows us to explore these relationships in the time–frequency domain to capture short- and long-term investors’ perspectives. Bi-directional spillovers are captured in terms of returns and volatility. In addition to covering the periods of the dot.com crash, the 11 September 2001 events, the pre-2007 financialization bubble period and the resulting Global Financial Crisis, we study volatility spillovers arising from the BRIC, U.S. and European market shocks post the Global Financial Crisis. Based on our results, we confirm findings in relatively fragmented literature that document time-varying and imperfect BRIC markets’ integration with mature economies. Overall, we show that arbitrage opportunities continue to exist in international stock market portfolios with respect to BRIC assets. In a major addition to the literature, our study captures spillovers from the advanced economies’ shocks to BRIC markets, as well as contagion from BRIC markets’ shocks to advanced economies’ markets.

scholarly journals The Shift-Contagion Effect Of Global Financial Crisis And The European Sovereign Debt Crisis On OECD Countries

2013 ◽  
Vol 30 (1) ◽  
pp. 301 ◽  
Author(s):  
Irfan Akbar Kazi ◽  
Mohamed Mehanaoui ◽  
Farhan Akbar
Keyword(s):  
Financial Crisis ◽  
Sovereign Debt ◽  
Global Financial Crisis ◽  
Debt Crisis ◽  
Sovereign Debt Crisis ◽  
Policy Makers ◽  
Dynamic Correlations ◽  
European Sovereign Debt Crisis ◽  
Recent Financial Crisis ◽  
The Global Financial Crisis

<p>This article investigates shift-contagion as defined by Forbes and Rigobon (2002) in 16 OECD member economies during most recent financial crisis i.e. global financial crisis (2008-2009) and European sovereign debt crisis (2009-2012), using multivariate asymmetric dynamic conditional correlation model developed by Cappiello et al. (2006). The empirical analyses provide substantial evidence of shifts in the dynamic correlations and hence reconfirm shift-contagion during the global financial crisis that originated from U.S. However, there is no evidence in support of shift-contagion during the European sovereign debt crisis which originated from events in Greece. The results provide important implications for investors and policy makers.</p>

Financial Contagion and Shock Transmission During the Global Financial Crisis

2020 ◽  
pp. 173-197
Author(s):  
Thomas J. Flavin ◽  
Dolores Lagoa-Varela
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Propagation Mechanism ◽  
Financial Contagion ◽  
Shock Transmission ◽  
Cast Doubt ◽  
Recent Financial Crisis ◽  
The Stability ◽  
The Global Financial Crisis ◽  
Investment Portfolios

After the recent financial crisis, the analysis of shock transmission across the financial system has received a great deal of attention. In particular, the role of financial contagion as a shock propagation mechanism has been studied in detail. The globalisation of financial and banking markets has increased the connections and relationship between them. Hence, recent crises have spread all around the world. The stability of linkages between financial assets across different market conditions cast doubt upon the benefits of portfolio diversification. This chapter reviews the extant literature on financial contagion during the global financial crisis and thus provides information for both portfolio managers (when optimizing their investment portfolios) and policymakers (when designing their strategies in order to mitigate spillover effects during crisis periods).

scholarly journals The Impact Of The Global Financial And Economic Crisis On The Convergence Process In OECD Countries

2015 ◽  
Vol 18 (1) ◽  
pp. 81-96 ◽  
Author(s):  
Marianna Greta ◽  
Krzysztof Lewandowski
Keyword(s):  
Financial Crisis ◽  
Economic Crisis ◽  
Econometric Model ◽  
Global Financial Crisis ◽  
Oecd Countries ◽  
The Great Depression ◽  
Convergence Process ◽  
Similarities And Differences ◽  
The Global Financial Crisis ◽  
The Impact

This paper analyzes the issue of convergence in OECD countries and tries to assess the effect of financial crisis on the process of convergence. In other words it will consider whether the global financial crisis pulled the economies of the organization together or pushed them apart. It tries to show whether the present crisis has had a similar effect on the convergence process as the Great Depression had 80 years ago. It will analyze the most important macroeconomic data from the period 2007–2012 and use a simple econometric model to establish the relationships and, in conclusion, compare the similarities and differences between these two economic events.

scholarly journals Banks’ business strategies on the edge of distress

2019 ◽  
Author(s):  
Andrea Flori ◽  
Simone Giansante ◽  
Claudia Girardone ◽  
Fabio Pammolli
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Peer Group ◽  
Group Identification ◽  
Rare Event ◽  
Global Scale ◽  
Business Strategies ◽  
Funding Liquidity ◽  
Recent Financial Crisis ◽  
The Global Financial Crisis

Abstract The paper investigates the importance of banks’ business classification in shaping the risk profile of financial institutions on a global scale. We employ a rare-event logit model based on a state-of-the-art list of major global distress events from the global financial crisis. When clustering banks by their business strategies using a community detection approach, we show that (i) capital enhanced resilience only for traditional banks that were on average less capitalized than other banks; (ii) boosting ROE, usually associated with riskier exposures, improved resilience for stable funded and asset diversified banks; (iii) conversely, higher levels of ROA exacerbated banks’ vulnerability when associated with concentrated (not-diversified) investment structures; (iv) size in terms of total assets contributed to instability only for wholesale-funded institutions due to their high levels of unstable funding. Liquidity, on the contrary, reduced the institution likelihood of being in distress, regardless of its business classification. Although our findings refer to the recent financial crisis, they provide evidence that a tailored risk monitoring based on a proper peer group identification can facilitate banks’ distresses prediction.

On the formation of a New Paradigm of fiscal Policy

2013 ◽  
pp. 152-158 ◽  
Author(s):  
V. Senchagov
Keyword(s):  
Public Finance ◽  
Fiscal Policy ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Domestic Demand ◽  
Real Economy ◽  
New Paradigm ◽  
Monetary Aggregate ◽  
The Past ◽  
The Global Financial Crisis

Due to Russia’s exit from the global financial crisis, the fiscal policy of withdrawing windfall spending has exhausted its potential. It is important to refocus public finance to the real economy and the expansion of domestic demand. For this goal there is sufficient, but not realized financial potential. The increase in fiscal spending in these areas is unlikely to lead to higher inflation, given its actual trend in the past decade relative to M2 monetary aggregate, but will directly affect the investment component of many underdeveloped sectors, as well as the volume of domestic production and consumer demand.

ASPEK ETIK DAN SISTEMIK DALAM EKONOMI DAN BISNIS ISLAM

ALQALAM ◽  
2014 ◽  
Vol 31 (1) ◽  
pp. 187
Author(s):  
Budi Harsanto
Keyword(s):  
Financial Crisis ◽  
Business Ethics ◽  
Moral Hazard ◽  
Global Financial Crisis ◽  
Financial Institution ◽  
Research Question ◽  
Academic Journals ◽  
Lehman Brothers ◽  
The World ◽  
The Global Financial Crisis

The fall of Enron, Lehman Brothers and other major financial institution in the world make researchers conduct various studies about crisis. The research question in this study is, from Islamic economics and business standpoint, why the global financial crisis can happen repeatedly. The purpose is to contribute ideas regarding Islamic viewpoint linked with the global financial crisis. The methodology used is a theoretical-reflective to various article published in academic journals and other intellectual resources with relevant themes. There are lots of analyses on the causes of the crisis. For discussion purposes, the causes divide into two big parts namely ethics and systemic. Ethics contributed to the crisis by greed and moral hazard as a theme that almost always arises in the study of the global financial crisis. Systemic means that the crisis can only be overcome with a major restructuring of the system. Islamic perspective on these two aspect is diametrically different. At ethics side, there is exist direction to obtain blessing in economics and business activities. At systemic side, there is rule of halal and haram and a set of mechanism of economics system such as the concept of ownership that will early prevent the seeds of crisis. Keywords: Islamic economics and business, business ethics, financial crisis 

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