scholarly journals The Relationship Between Corporate Tax Rate and Economic Growth During the Global Financial Crisis: Evidence from a Panel VAR

2019 ◽  
Vol 8 (2) ◽  
pp. 189-202
Author(s):  
Gamze Öz Yalaman
Keyword(s):  
Economic Growth ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Panel Var ◽  
Corporate Tax ◽  
Causality Test ◽  
Tax Rate ◽  
Crisis Period ◽  
Dynamic Relationship ◽  
Recent Financial Crisis

This paper compares dynamic relationship between economic growth and corporate tax rate during the recent financial crisis and the non–crisis period using a panel VAR for 29 OECD countries over the period 1998-2016. The results show that corporate tax rate has a significantly negative effect on economic growth. Moreover, the recent financial crisis has had a significant effect on the endogenous interaction between corporate tax rate and economic growth. According to Granger causality test, there is only one-way causality from corporate tax rate to economic growth during the non-crisis period. Interestingly, there are not any causal relationships between corporate tax rate and economic growth during the crisis period. The results show that the recent crisis has had a significant effect on the endogenous interaction between corporate tax rate and economic growth.

Global financial crisis, ownership structure and firm financial performance

2017 ◽  
Vol 34 (4) ◽  
pp. 447-465 ◽  
Author(s):  
Ali Salman Saleh ◽  
Enver Halili ◽  
Rami Zeitun ◽  
Ruhul Salim
Keyword(s):  
Financial Crisis ◽  
Financial Performance ◽  
Ownership Structure ◽  
Family Firms ◽  
Global Financial Crisis ◽  
Ownership Concentration ◽  
Financial Leverage ◽  
Content Type ◽  
Crisis Period ◽  
The Global Financial Crisis

Purpose This paper aims to investigate the financial performance of listed firms on the Australian Securities Exchange (ASX) over two sample periods (1998-2007 and 2008-2010) before and during the global financial crisis periods. Design/methodology/approach The generalized method of moments (GMM) has been used to examine the relationship between family ownership and a firm’s performance during the financial crisis period, reflecting on the higher risk exposure associated with capital markets. Findings Applying firm-based measures of financial performance (ROA and ROE), the empirical results show that family firms with ownership concentration performed better than nonfamily firms with dispersed ownership structures. The results also show that ownership concentration has a positive and significant impact on family- and nonfamily-owned firms during the crisis period. In addition, financial leverage had a positive and significant effect on the performance of Australian family-owned firms during both periods. However, if the impact of the crisis by sector is taking into account, the financial leverage only becomes significant for the nonmining family firms during the pre-crisis period. The results also reveal that family businesses are risk-averse business organizations. These findings are consistent with the underlying economic theories. Originality/value This paper contributes to the debate whether the ownership structure affects firms’ financial performance such as ROE and ROA during the global financial crisis by investigating family and nonfamily firms listed on the Australian capital market. It also identifies several influential drivers of financial performance in both normal and crisis periods. Given the paucity of studies in the area of family business, the empirical results of this research provide useful information for researchers, practitioners and investors, who are operating in capital markets for family and nonfamily businesses.

scholarly journals Analisis faktor-faktor yang mempengaruhi pertumbuhan ekonomi di Provinsi Riau tahun 2000-2018

SOROT ◽  
2020 ◽  
Vol 15 (2) ◽  
pp. 87
Author(s):  
Miftakul Khoiri ◽  
Syapsan Syapsan ◽  
Sri Endang Kornita
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Capital Expenditure ◽  
Labour Force ◽  
Private Investment ◽  
Least Square ◽  
Domestic Product ◽  
Ordinary Least Square

Terdapat beberapa permasalahan yang berbeda pada sumber daya di setiap daerah, yaitu investasi, tenaga kerja dan teknologi sebagai faktor pembentuk output perekonomian daerah. Penelitian ini menganalisis hubungan antara investasi dalam bentuk Penanaman Modal Asing (PMA), Penanaman Modal Dalam Negeri (PMDN), belanja modal pemerintah, angkatan kerja dan ekspor dengan pertumbuhan ekonomi. Tujuan penelitian adalah melihat pengaruh besarnya faktor-faktor tersebut terhadap Pertumbuhan ekonomi di Provinsi Riau 2000-2018. Untuk kepentingan khusus penelitian dengan tujuan melihat pengaruh krisis keuangan global tahun 2008 terhadap pertumbuhan ekonomi maka dimasukkan variabel dummy krisis keuangan. Penelitian ini adalah penelitian kuantitatif dengan metode regresi berganda log-log linier dan data time series. Model diestimasi dengan metode Ordinary Least Square (OLS). Hasil penelitian menunjukkan bahwa PMA, PMDN, angkatan kerja dan ekspor signifikan positif mempengaruhi pertumbuhan ekonomi yang diukur dengan nilai Produk Domestik Regional Bruto (PDRB). Begitu juga dengan dummy krisis keuangan global meskipun berlangsung singkat ternyata berpengaruh terhadap PDRB di Provinsi Riau. Namun demikian ditemukan bahwa belanja modal pemerintah tidak signifikan mempengaruhi pertumbuhan PDRB.There are some problems in resources of the regions, namely investment, labour force, and technology as the component factors to make the output of the region’s economy. This study aims to analyze the relationship between investment as consist of foreign direct investment (FDI), private investment, government capital expenditure, labour force, export and economic growth to the gross regional domestic product growth of regency in Riau Province 2000-2018. For the specific purpose of describing global financial crises in 2008 influence the economic growth, we put the dummy variable of the financial crisis in the model. This research is quantitative descriptive with the multiple regression model of log-linear and time series method using Ordinary Least Square (OLS). The study shows that government capital expenditure is statistically not significant to affect the gross regional domestic product growth. FDI, private investment, labour force and export is statistically significant to affect the gross regional domestic product growth. As well as a dummy of the global financial crisis is statistically significant to affect the gross regional domestic product growth.

Role of Accounting and Audit in the Recent Financial Crisis

2013 ◽  
pp. 91-98
Author(s):  
Alev Dilek Aydin
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Fair Value ◽  
Financial Reports ◽  
Historical Cost ◽  
The Public ◽  
Creative Accounting ◽  
Recent Financial Crisis ◽  
Audit Reports

This study aims to assess the role of accounting and auditing in the recent financial crisis. After each crisis, there have been serious discussions concerning the reasons behind those crises. However, no consensus has yet been achieved until now. In this context, the analysis of the relationships among financial crisis, accounting, and auditing is of utmost importance in better evaluating the structural reasons behind the crisis. There are several points that this chapter aims to analyze to indicate the contributions of accounting and auditing to the recent global financial crisis. These points are: impacts of disregarding the main principles of accounting, the wide use of fair value accounting over cost-based accounting, incorrect and misleading financial and audit reports, applications of creative accounting, and lack of transparency and weaknesses of the auditing process. The debates generally concentrate on the use of fair value (mark-to-market) accounting in the financial reports as opposed to the historical cost method. It should be emphasized that accounting is very important as a key mechanism of market economies, because of its crucial role in the functioning of the markets in accordance with the public interest. The chapter concludes with several suggestions by taking the fact into consideration that accounting and auditing systems should be revised for the better protection of interests of the third parties such as investors, potential investors, and the state.

Stakeholder Agriculture

2020 ◽  
pp. 258-281
Author(s):  
Alexandros Antonaras ◽  
Alexandros Kostopoulos
Keyword(s):  
Financial Crisis ◽  
Rural Areas ◽  
Social Innovation ◽  
Global Financial Crisis ◽  
Negative Consequences ◽  
Dramatic Decline ◽  
New Business ◽  
Per Capita ◽  
Recent Financial Crisis ◽  
Agricultural Entrepreneurship

The shift in agricultural production and agribusiness may be a solution in reducing unemployment and particularly that of young people which is dramatically high in several European countries that are experiencing the negative consequences of the recent global financial crisis that led to a dramatic decline in their GDP per capita and has affected all sectors of economic activity, including agriculture. The overall scope of this chapter is to present an Agricultural Entrepreneurship and Social Innovation Framework that can lead to a new business model with social aspects, contribute to the economic growth and sustainability and hence combat the phenomenon of unemployment and poverty in rural areas that have been seriously affected by the recent financial crisis.

scholarly journals Crisis determination and financial contagion: an analysis of the Hong Kong and Tokyo stock markets using an MSBVAR approach

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Haytem Troug ◽  
Matt Murray
Keyword(s):  
Hong Kong ◽  
Stock Markets ◽  
Global Financial Crisis ◽  
Current Data ◽  
Financial Contagion ◽  
Macroeconomic Factors ◽  
Content Type ◽  
Crisis Period ◽  
Dynamic Relationship ◽  
Using Data

PurposeThe purpose of this paper then, is to add to the existing literature on financial contagion. While a vast amount of the debate has been made using data from the late 1990s, this paper differentiates itself by analysing more current data, centred around the most recent global financial crisis, with specific focus on the stock markets of Hong Kong and Tokyo.Design/methodology/approachEmploying Pearson and Spearman correlation measures, the dynamic relationship of the two markets is determined over tranquil and crisis periods, as specified by an Markov-Switching Bayesian Vector AutoRegression (MSBVAR) model.FindingsThe authors find evidence in support of the existence of financial contagion (defined as an increase in correlation during a crisis period) for all frequencies of data analysed. This contagion is greatest when examining lower-frequency data. Additionally, there is also weaker evidence in some data sub-samples to support “herding” behaviour, whereby higher market correlations persist, following a crisis period.Research limitations/implicationsThe intention of this paper was not to analyse the cause or transmission mechanism of contagion between financial markets. Therefore future studies could extend the methodology used in this paper by including exogenous macroeconomic factors in the MSBVAR model.Originality/valueThe results of this paper serve to explain why the debate of the persistence and in fact existence of financial contagion remains alive. The authors have shown that the frequency of a time series dataset has a significant impact on the level of observed correlation and thus observation of financial contagion.

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.  

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