scholarly journals The use and trend of emotional language in the banks’ annual reports: the state of the global financial crisis

2019 ◽  
Vol 14 (2) ◽  
pp. 9-23
Author(s):  
Elsayed A. H. Elamir ◽  
Gehan A. Mousa
Keyword(s):  
Financial Crisis ◽  
United Arab Emirates ◽  
Global Financial Crisis ◽  
Annual Reports ◽  
Sultanate Of Oman ◽  
Kingdom Of Saudi Arabia ◽  
Data Set ◽  
Emotional Words ◽  
Final Data ◽  
The Global Financial Crisis

This study is of an exploratory nature as it seeks to explore the extent to which the language of emotions in the banks’ annual reports is affected by the global financial crisis (GFC). The language of emotions was analyzed using eight categories (trust, anticipation, sadness, anger, fear, disgust, surprise and joy) in annual reports of 12 listed banks from six countries in the Middle East area (namely, Jordan, Kingdom of Bahrain, United Arab Emirates, Sultanate of Oman, Kuwait, Kingdom of Saudi Arabia) from 2002 to 2017. The final data set consists of 192 bank-year observations. The study time was divided into three periods (pre, during and post GFC). In addition, the study enriches accounting literature by being the first study to test Pollyanna hypothesis using emotion analysis. The results of the study show that the percentage of emotional words in banks’ annual reports (2002–2017) represents almost 22% on average. The trust, anticipation and fear categories were the most affected than other emotional categories during GFC. While the trust category decreased, both the fear and anticipation categories increased. Other findings of the study show that regardless of GFC, emotional words of trust and anticipation categories in banks’ annual reports have dominated the emotional words of the disgust and surprise categories. Therefore, Pollyanna hypothesis is supported. In contrast to the emotional words of the joy category in banks’ annual reports which has not dominated the sadness category. In this case, Pollyanna hypothesis is rejected.

Financial distress determinants among SMEs: empirical evidence from Sweden

2020 ◽  
Vol 47 (3) ◽  
pp. 547-560 ◽  
Author(s):  
Darush Yazdanfar ◽  
Peter Öhman
Keyword(s):  
Financial Crisis ◽  
Financial Distress ◽  
Large Scale ◽  
Global Financial Crisis ◽  
Binary Logistic Regression ◽  
Data Availability ◽  
Cross Sectional ◽  
Data Set ◽  
Content Type ◽  
The Global Financial Crisis

PurposeThe purpose of this study is to empirically investigate determinants of financial distress among small and medium-sized enterprises (SMEs) during the global financial crisis and post-crisis periods.Design/methodology/approachSeveral statistical methods, including multiple binary logistic regression, were used to analyse a longitudinal cross-sectional panel data set of 3,865 Swedish SMEs operating in five industries over the 2008–2015 period.FindingsThe results suggest that financial distress is influenced by macroeconomic conditions (i.e. the global financial crisis) and, in particular, by various firm-specific characteristics (i.e. performance, financial leverage and financial distress in previous year). However, firm size and industry affiliation have no significant relationship with financial distress.Research limitationsDue to data availability, this study is limited to a sample of Swedish SMEs in five industries covering eight years. Further research could examine the generalizability of these findings by investigating other firms operating in other industries and other countries.Originality/valueThis study is the first to examine determinants of financial distress among SMEs operating in Sweden using data from a large-scale longitudinal cross-sectional database.

scholarly journals The Integrated Measuring of Working Capital Management Efficiency on Financial Performance in Indonesia Stock Exchange

2015 ◽  
Vol 7 (3) ◽  
pp. 26-33
Author(s):  
Petrus Emanuel De ◽  
Rina Indiastuti . ◽  
Erie Febrian .
Keyword(s):  
Financial Crisis ◽  
Financial Performance ◽  
Global Financial Crisis ◽  
Stock Exchange ◽  
Chief Financial Officers ◽  
Working Capital ◽  
Data Set ◽  
Crisis Period ◽  
Cash Conversion Cycle ◽  
The Global Financial Crisis

The purpose of this study is to determine the differences effect of working capital efficiency on financial performance during periods of crisis. The measurement is made during the crisis compared to the entire period of observation by using cash conversion cycle (CCC) and working capital policy (both investment policy and financing policy) on the profitability (by return on assets) and market value (by Tobin’s Q). Using all annual financial data of 104 manufacturing firms listed in Indonesia Stock Exchange (IDX) over the period 2005-2013. These periods include the global financial crisis. The panel data set was developed for nine years, which produced 936 firms-years observations. This study uses multivariate regression models with hierarchical regression analysis approach. This approach uses the global financial crisis period as a dummy variable. The results showed that there were differences in the effect of the cash conversion cycle (and its components) and working capital policy on profitability during the crisis period compared to the whole period. In contrast, no differences effect the cash conversion cycle (and its components) and working capital policy on the value of the company in the crisis period compared to the whole period. The manufacturing industries do not apply the efficiency in the management of working capital. The global financial crisis tends the companies to change their working capital policy more efficiently. The researcher can extend this study by doing a qualitative research how to chief financial officers invest and finance day-by-day operation.

scholarly journals Inefficiency patterns in family-owned banks in Bangladesh

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mette Asmild ◽  
Dorte Kronborg ◽  
Tasmina Mahbub ◽  
Kent Matthews
Keyword(s):  
Financial Crisis ◽  
Business Models ◽  
Global Financial Crisis ◽  
Time Window ◽  
Management Practice ◽  
Data Set ◽  
Content Type ◽  
Empirical Results ◽  
The Difference ◽  
The Global Financial Crisis

PurposeMulti-directional efficiency analysis (MEA) is an alternative methodology to data envelopment analysis (DEA) that investigates the improvement potentials in each input and output dimension and identifies a benchmark proportional to these potential improvements. This results in a more nuanced picture of the sources of the inefficiency providing opportunities for additional conclusions about which variables the inefficiency is mainly located on. MEA provides insights into not only the level of the inefficiency but also the patterns within the inefficiency, i.e. its sources and location. This paper applies this methodology to Bangladeshi banks to understand the differences in the inefficiency patterns between different subgroups.Design/methodology/approachThis paper analyses the difference in the pattern of inefficiency between the older family-dominated banks and the newer non-family-owned banks in Bangladesh using the recently developed MEAs technology, which enables analysis of patterns within inefficiencies rather than only levels of (in)efficiency. The empirical results show that whilst there are few significant differences in the levels of variable-specific efficiency scores between the two subgroups, there are clearer differences on the inefficiency contributions from particular outputs in most of the study period and also on most variables in the time window of 2007–2009. This finding provides clues to differences in business models and management practice between the two types of banks in Bangladesh.FindingsThe empirical results show that whilst there are few significant differences in the levels of variable-specific efficiency scores between the two subgroups (older family-dominated banks and the newer non-family-owned banks), there are clearer differences on the inefficiency contributions from particular outputs in most of the study period and also on most variables in the time window of 2007–2009, during the Global Financial Crisis (GFCs). This finding provides clues to differences in business models and management practice between the two types of banks in Bangladesh.Practical implicationsDEA is a conventional tool for benchmarking in management science. However, conventional benchmarking exercises based on DEA do not reveal significant differences in the sources of inefficiency that show differences in business models. While DEA remains the most utilized technique in the efficiency literature, we think that a more flexible and deeper analysis requires something like MEA.Originality/valueThe contribution is twofold. First, examination of performances of family-owned firms is a well-established but analysis of performances of family-dominated banks is relative scarce. Secondly, isolating the sources of inefficiency which differs between types of banks even if there is no difference in inefficiency levels is absolutely new for a complete data set of conventional banks in Bangladesh. It turns out that there are few (significant) differences between the groups in terms of the inefficiency levels, whereas clear patterns emerge in terms of differences in inefficiency contributions between family-dominated and non-family-owned banks, during the Global Financial Crisis

scholarly journals An Early Warning Signal (EWS) Model for Predicting Financial Crisis in Emerging African Economies

2020 ◽  
Vol 12 (1) ◽  
pp. 101
Author(s):  
Kehinde Damilola Ilesanmi ◽  
Devi Datt Tewari
Keyword(s):  
Financial Crisis ◽  
Early Warning ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Warning Signal ◽  
Multinomial Logit Model ◽  
Set Covering ◽  
Data Set ◽  
Early Warning Signal ◽  
The Global Financial Crisis

The devastating effects of the global financial crisis (GFC) have led to a renewed, global interest in the development of an early warning signal (EWS) model. The purpose of the EWS model is to alert policymakers and other stakeholders to the possibility of the occurrence of a crisis. This study estimates a EWS model for predicting the financial crisis in four emerging African economies using a multinomial logit model and a data set covering the period of January 1980 to December 2017. The result of the study suggests that emerging African economies are more likely to face financial crisis as debts continue to rise without a corresponding capacity to withstand capital flow reversal as well as excessive foreign exchange risk due to currency exposure. The result further indicates that rising debt exposure raises the likelihood of the economies remaining in a state of crisis. This result confirms the significance of a financial stability framework that addresses the issues confronting Africa’s emerging economies such as rising debt profile, liquidity and currency risk exposure.

Income return versus capital appraisal for real estate funds during the financial crisis

2015 ◽  
Vol 10 (1) ◽  
pp. 66-79
Author(s):  
Gianluca Mattarocci ◽  
Georgios Siligardos
Keyword(s):  
Financial Crisis ◽  
Real Estate ◽  
Global Financial Crisis ◽  
Capital Gains ◽  
Annual Reports ◽  
Content Type ◽  
Income Sources ◽  
Overall Performance ◽  
The Global Financial Crisis ◽  
The Impact

Purpose – The overall performance of real estate funds can be ascribed to capital appreciation and/or income return. The Italian property funds market has grown significantly over the past few years; however, little is known about the key drivers of property fund performance. The purpose of this paper is to measure the impact of two sources of funds’ performance and identify their relevance during the financial crisis. Design/methodology/approach – The paper considers the Italian market in the last decade and analyses the annual reports of public real estate funds, separating appraisal returns from income returns. By considering a wide time horizon, it evaluates if the roles of income returns and capital gains with respect to overall performance are more or less influenced by fund characteristics, such as asset diversification, concentration, and leverage. Findings – The contribution of income return and capital growth are not strictly related to the overall performance of Italian real estate funds, with a significantly lower correlation during the global financial crisis. Furthermore, the main drivers of the two income sources are not strictly comparable. Originality/value – The paper presents the first analysis on the source of income return for the Italian real estate funds and it represents one of the few studies that considers the effect of the financial crisis on European indirect real estate investments, capital appreciation and income return.

Migration patterns in a remittances dependent economy: Evidence from Tajikistan during the global financial crisis

2014 ◽  
Vol 7 (2) ◽  
pp. 190-202 ◽  
Author(s):  
Alexander M. Danzer ◽  
Oleksiy Ivaschenko
Keyword(s):  
Panel Data ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Economic Recession ◽  
Destination Country ◽  
Data Set ◽  
Migration Patterns ◽  
The Global Financial Crisis ◽  
The Cost ◽  
Remarkable Reduction

Before the global financial crisis, Tajikistan was a major labour exporting and the world’s most remittances-dependent country. Remittances had contributed to a remarkable reduction in poverty. This paper exploits a new panel data set spanning the years 2007 to 2009 in order to investigate the effect of the financial crisis on migration and remittances patterns. Expectedly, the economic recession in the main destination country Russia affected Tajikistan through declining remittances. Owing to low diversification in pre-crisis migration patterns, the dependency on sending migrants to Russia and the migration stock there grew. In combination with increased migration risk this suggests that migrants bear part of the cost of the crisis.

scholarly journals Predicting the Likelihood of Lodging CMBS Loan Default

2018 ◽  
Vol 60 (1) ◽  
pp. 52-68
Author(s):  
Amrik Singh
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Fixed Rate ◽  
Data Set ◽  
Loan Default ◽  
Coverage Ratio ◽  
Significant Relationships ◽  
Mortgage Backed Securities ◽  
Loan Defaults ◽  
The Global Financial Crisis

This study investigates whether the traditional underwriting loan metrics, loan-to-value (LTV), debt coverage ratio (DSCR), and debt yield (DY) ratio, can predict lodging commercial mortgage-backed securities (CMBS) loan defaults. Using a data set of 5,266 fixed-rate lodging whole loans that were securitized into CMBS between 1996 and 2015, the results of the study provide evidence of significant relationships between all three metrics and the likelihood of default. The LTV varies positively with default, while the DSCR and DY are negatively related to default. These results hold for a subsample analysis of loans originated prior to the global financial crisis (GFC). Finally, the results show the DY spreads to be adequate proxies for the DY ratio.

scholarly journals Impression Management and Retrospective Sense-Making in Corporate Annual Reports: Banks’ Graphical Reporting During the Global Financial Crisis

2017 ◽  
Vol 57 (4) ◽  
pp. 474-496 ◽  
Author(s):  
Michael John Jones ◽  
Andrea Melis ◽  
Silvia Gaia ◽  
Simone Aresu
Keyword(s):  
Financial Crisis ◽  
Stock Market ◽  
Impression Management ◽  
Cognitive Biases ◽  
Global Financial Crisis ◽  
Market Performance ◽  
Annual Reports ◽  
Sense Making ◽  
Stock Market Performance ◽  
The Global Financial Crisis

This study investigates two potentially complementary reporting scenarios in annual reports: reactive impression management and retrospective sense-making. It examines stock market performance graphs in European listed banks’ annual reports before and during the global financial crisis. Our results indicate that banks reacted to the global financial crisis by omitting stock market performance graphs from the annual report and from its most prominent sections. On the other hand, banks reduced favorable distortions and favorable performance comparisons. No significant evidence of retrospective sense-making is found. Overall, the findings are consistent with impression management incorporating human cognitive biases, with companies preferring misrepresentation by omission over misrepresentation by commission. Under high public scrutiny, banks appear to seek to provide a more favorable view by concealing negative information rather than by favorable distortions or comparisons. The study contributes to the development of impression management theories. It uses a psychological interpretation that incorporates human cognitive biases, rather than adopting a purely economically based perspective.

scholarly journals Financial crisis and diversification strategies: the impact on bank risk and performance

2021 ◽  
Vol 10 (3) ◽  
pp. 249-261
Author(s):  
Duy Khanh Pham ◽  
Vu Minh Ngo ◽  
Huan Huu Nguyen ◽  
Toan Linh Vu Le
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Bank Risk ◽  
Data Set ◽  
Bank Managers ◽  
Diversification Strategies ◽  
Generalised Method Of Moments ◽  
And Performance ◽  
The Global Financial Crisis ◽  
The Impact

The paper investigates the impacts of diversification strategies on various indicators of bank risks and performance in emerging markets before, during, and after the global financial crisis. We use a data set of 44 commercial banks in Vietnam over the period 2002-2019 and the Generalised Method of Moments (GMM). The results suggest that income and funding diversification improve bank performance without increasing their risk-taking. During the financial crisis, assets and funding diversity help reduce risk, while income diversified banks bear more risk. The empirical findings show that different diversification dimensions affect bank risk and performance differently during crisis and non-crisis periods so bank managers need to adjust their strategy accordingly.

Sign in / Sign up

Export Citation Format

Share Document