What causes financial crisis in Asian countries?

2018 ◽  
pp. 5-19 ◽  
Author(s):  
Anh Thi Thuy Vo ◽  
Thuy Xuan Ha ◽  
Khanh Phan Nha Bui
Keyword(s):  
Corporate Governance ◽  
Financial Crisis ◽  
Minor Effect ◽  
Asian Countries ◽  
Macroeconomic Factors ◽  
Governance Index ◽  
The Business Cycle ◽  
A Minor ◽  
And Control ◽  
The Impact

In this paper, we investigate the indicators of financial crisis in Asian countries, focusing more on the impact of corporate governance. Unlike the previous studies such as Johnson et al. (2000) and Acemoglu et al. (2003) that use some fixed measures of corporate governance based on the law in force in a specific year—such as the anti-director right index (ADRI) or the anti-self dealing index (ASDI)—we employ the annual Worldwide Governance Index (WGIs) and the Quality of Governance Index. The regression results, which use the data of 19 Asian countries from 1996 to 2015, and control for country fixed effect and the business cycle, show that the macroeconomic factors appear to have no effect, or a minor effect, on currency depreciation. However, better corporate governance reduces the decline in currency value.

scholarly journals Innovativeness of Industrial Processing Enterprises and Conjunctural Movement

Entropy ◽  
2020 ◽  
Vol 22 (10) ◽  
pp. 1177
Author(s):  
Aleksander Jakimowicz ◽  
Daniel Rzeczkowski
Keyword(s):  
Financial Crisis ◽  
Business Cycle ◽  
Global Financial Crisis ◽  
Innovative Activity ◽  
Public Enterprises ◽  
Macroeconomic Factors ◽  
Industrial Processing ◽  
Innovation Activities ◽  
The Business Cycle ◽  
The Impact

Singulation of components determining the innovative activity of enterprises is a complex issue as it depends on both microeconomic and macroeconomic factors. The purpose of this article is to present the results of research on the impact of the mutual interactions between ownership and the size of companies on the achievement of the objectives of innovative activity by Polish industrial processing enterprises in changing cyclical conditions. The importance of innovation barriers was also assessed. Empirical data came from three periods that covered different phases of the business cycle: prosperity 2004–2006, global financial crisis 2008–2010, and recovery 2012–2014. The research used a cybernetic approach based on feedback loops presenting interactions between variables. In addition, two statistical methods were used: the Pearson’s χ2 independence test and correspondence analysis. The following discoveries were made during the research: (1) consideration of the combined impact of ownership and the size of companies on their innovation activities makes it possible to study phenomena that may be overlooked if the impact of these factors is considered separately; (2) public enterprises achieve significantly worse results in terms of innovation than companies from other ownership sectors; (3) the Red Queen effect, which assumes that the best innovative enterprises exert selection pressure on all other companies, applies to industrial processing companies, and in particular public enterprises; (4) the industrial processing section is more sensitive to secular trends than to cyclical fluctuations; (5) confirmation of occurrence of the Polish Green Island effect, which assumes that companies achieve good results in terms of innovation, irrespective of the phases of the business cycle; and (6) statistical evidence is provided that the global financial crisis may be associated with the turn of the Fifth and Sixth Kondratieff waves. Most likely, the role of the communication channel between the world economy and the Polish manufacturing section is fulfilled by foreign ownership, whose percentage of share capital of this section is estimated at 50%.

scholarly journals Assessing the Impact of Corporate Governance Index on Financial Performance in the Romanian and Italian Banking Systems

2021 ◽  
Vol 13 (10) ◽  
pp. 5535
Author(s):  
Marco Benvenuto ◽  
Roxana Loredana Avram ◽  
Alexandru Avram ◽  
Carmine Viola
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Banking Sector ◽  
Research Question ◽  
Interactive Effect ◽  
Banking System ◽  
Capital Adequacy ◽  
Banking Systems ◽  
Governance Index ◽  
The Impact

Background: Our study aims to verify the impact of corporate governance index on financial performance, namely return on assets (ROA), general liquidity, capital adequacy and size of company expressed as total assets in the banking sector for both a developing and a developed country. In addition, we investigate the interactive effect of corporate governance on a homogenous and a heterogeneous banking system. These two banking systems were chosen in order to assess the impact of corporate governance on two distinct types of banking system: a homogenous one such as the Romanian one and a heterogeneous one such as the Italian one. The two systems are very distinct; the Romanian one is represented by only 34 banks, while the Italian one comprises more than 350 banks. Thus, our research question is how a modification in corporate governance legislation is influencing the two different banking systems. The research implication of our study is whether a modification in legislation, thus in the index of corporate governance, is feasible for two different banking sectors and what the best ways to increase the financial performance of banks are without compromising their resilience. Methods: Using survey data from the Italian and Romanian banking systems over the period 2007–2018, we find that the corporate governance has a significant, positive and long-lasting effect on profitability and capital adequacy in both countries. Results: Taking the size of the company into consideration, the impact of the Index of Corporate Governance (ICG) on a homogenous banking system is positive while the impact on a heterogeneous banking system is negative. Conclusions: Our study provides evidence of the impact of IGC on financial performance and sheds light on the importance of the size of the company. Therefore, one can state that the corporate governance principles applied do not encourage the growth of large banks in heterogeneous banking sectors, thereby suggesting new avenues of research associated with new perspectives.

scholarly journals Antecedents of voluntary corporate governance disclosure: a post-2007/08 financial crisis evidence from the influential UK Combined Code

2016 ◽  
Vol 16 (3) ◽  
pp. 507-538 ◽  
Author(s):  
Mohamed H. Elmagrhi ◽  
Collins G. Ntim ◽  
Yan Wang
Keyword(s):  
Corporate Governance ◽  
Financial Crisis ◽  
Fixed Effects ◽  
Global Financial Crisis ◽  
Theoretical Perspective ◽  
Data Sets ◽  
Outside Directors ◽  
Content Type ◽  
Listed Firms ◽  
The Impact

Purpose The purpose of this study is to investigate the level of compliance with, and disclosure of, good corporate governance (CG) practices among UK publicly listed firms and consequently ascertain whether board characteristics and ownership structure variables can explain observable differences in the extent of voluntary CG compliance and disclosure practices. Design/methodology/approach This study uses one of the largest data sets to-date on compliance and disclosure of CG practices from 2008 to 2013 containing 120 CG provisions drawn from the 2010 UK Combined Code relating to 100 UK listed firms to conduct multiple regression analyses of the determinants of voluntary CG disclosures. A number of additional estimations, including two stage least squares, fixed-effects and lagged structures, are conducted to address the potential endogeneity issue and test the robustness of the findings. Findings The results suggest that there is a substantial variation in the levels of compliance with, and disclosure of, good CG practices among the sampled UK firms. The authors also find that firms with larger board size, more independent outside directors and greater director diversity tend to disclose more CG information voluntarily, whereas the level of voluntary CG compliance and disclosure is insignificantly related to the existence of a separate CG committee and institutional ownership. Additionally, the results indicate that block ownership and managerial ownership negatively affect voluntary CG compliance and disclosure practices. The findings are fairly robust across a number of econometric models that sufficiently address various endogeneity problems and alternative CG indices. Overall, the findings are generally consistent with the predictions of neo-institutional theory. Originality/value This study extends, as well as contributes to, the extant CG literature by offering new evidence on compliance with, and disclosure of, good CG recommendations contained in the 2010 UK Combined Code following the 2007/2008 global financial crisis. This study also advances the existing literature by offering new insights from a neo-institutional theoretical perspective of the impact of board and ownership mechanisms on voluntary CG compliance and disclosure practices.

scholarly journals The governance-performance relationship: evidence from Ghana

2016 ◽  
Vol 17 (3) ◽  
pp. 285-310 ◽  
Author(s):  
Andrews Owusu ◽  
Charlie Weir
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Fixed Effects ◽  
Developing Economies ◽  
Policy Makers ◽  
Content Type ◽  
Governance Index ◽  
Code Of Corporate Governance ◽  
The Impact ◽  
Post Code

Purpose The purpose of this paper is to investigate the impact corporate governance, measured by a governance index, on the performance of listed firms in a developing economy, Ghana. It also evaluates the effect of the introduction of a code of corporate governance on compliance rates across Ghanaian firms as well as assessing the impact of the code’s introduction on firm performance for the study period 2000-2009. Design/methodology/approach The paper develops a Ghanaian corporate governance index (GCGI) containing 33 provisions to measure corporate governance quality during the pre-code and the post-code sub-periods. The authors use a panel data analytical framework and fixed effects regressions to analyse the governance-performance relationships. Findings After controlling for endogeneity, the authors find a statistically significant and positive relationship between the GCGI and firm performance. The analysis shows evidence of a statistically significant increase in the degree of compliance with the Ghanaian Code from the pre-2003 sub-period to the post-2003 sub-period. The authors also find that the introduction of the code has led to improved firm performance. However, not all elements of corporate governance appear to have a significant effect on firm performance. Research limitations/implications One limitation of this study is the development of a corporate governance index. The binary coding used to construct the GCGI may not reflect the relative importance of the different corporate governance provisions. This means that all elements included in the index are given equal weighting. Future research may assign weights to each of the corporate governance provisions but this may have the disadvantage of making subjective judgements relative to the importance of each corporate governance provision recommended by the Ghanaian Code. Practical implications These results have important implications for both policy makers and companies. For policy makers, it is encouraging for the development of a code of corporate governance to regulate firms rather than enforcing rigid laws that may not be value relevant. For companies, the improvement in compliance with a code of corporate governance can provide a means of achieving improved performance. Originality/value This paper adds to the limited evidence on the governance-performance relationship in developing economies and in particular it analyses the role of a governance index. It is also the first paper to compare the pre- and the post-code governance index-performance relationship in an African or developing country.

scholarly journals TRANSMISI DAMPAK MELALUI JARINGAN PERDAGANGAN: PENDEKATAN ASIAN-IO

2014 ◽  
Vol 16 (4) ◽  
pp. 339-372
Author(s):  
Ibrahim Ibrahim ◽  
Tri Winarno ◽  
Melva Viva Grace ◽  
Yan Fitri
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Value Added ◽  
Jel Classification ◽  
Input Output ◽  
Asian Countries ◽  
Production Chain ◽  
The Us ◽  
Similar Point ◽  
The Impact

Global financial crisis which began in the US in the latter part of 2008 hit a lot of countries in both trade and finance. In trade aspect, the crisis spread widely; in Indonesia, the total export value in 2009 dropped to 14,3%. Therefore, the economy of China, tightly linked with Asian countries including Indonesia, which rapidly rose before the crisis but slowed after it should be monitored as this condition, could indirectly hold down Indonesia’s GDP. Applying RAS method to update Asian IO data, this research has attempted to describe the trade structure of Asian countries in 2010. Also, it implemented a simulation of the impact of US and China’s GDP decline and US exports on Indonesia’s GDP, both at aggregate and sector levels. The result of the mapping shows that Indonesia is getting more dependent on China. Generally, the link between Indonesia’s exported products and global production chain is weak. Indonesia’s export commodities which are mostly of intermediate goods have low contribution towards value added. Moreover, the result of the simulation shows that 1% decrease in China’s GDP has greater impact on Indonesia’s GDP (0,14%) than that of the US (0,05%) and EU (0,07%) though with similar point.  Keyword: Trade Interactions, Input Output Model JEL Classification : F16, R15

scholarly journals orporate governance in a transition economy: A case study of Russia

2004 ◽  
Vol 1 (4) ◽  
pp. 61-71 ◽  
Author(s):  
Galina G. Preobragenskaya ◽  
Robert W. McGee
Keyword(s):  
United States ◽  
Corporate Governance ◽  
Financial Crisis ◽  
Transition Economies ◽  
Transition Economy ◽  
East Asian ◽  
The United States ◽  
Asian Countries ◽  
Recent Developments

Corporate governance has become a popular topic in recent years. Although much attention has been given to corporate governance in the United States and other Western countries as a result of recent scandals, and in Japan and other East Asian countries because of the financial crisis that occurred there a few years ago, much has also been going on in Russia and other transition economies in the area of corporate governance. This paper discusses recent developments in corporate governance in Russia and includes information gathered during interviews conducted in Russia during the summer of 2003.

Isothermal Physical Flow Modeling of a Gas Turbine Simple-Cycle Selective-Catalytic-Reduction (SCR) System

2013 ◽  
Author(s):  
Larry Swanson ◽  
Hua Zhang ◽  
Doug Byrd
Keyword(s):  
Selective Catalytic Reduction ◽  
Gas Turbine ◽  
Catalytic Reduction ◽  
Transport Processes ◽  
Simple Cycle ◽  
Minor Effect ◽  
Tracer Injection ◽  
A Minor ◽  
Scr System ◽  
The Impact

A physical flow model of a gas turbine (GT) simple-cycle Selective-Catalytic-Reduction (SCR) system was constructed to a 1/16 geometric scale to validate computational fluid dynamics (CFD) predictions and examine the impact of tempering air injection on system performance. Repeatable velocity contours and tempering air dispersion profiles were developed for baseline (no tempering air), and 12- and 6-lance tempering air injector configurations. The conclusions from the study are: (1) relative to the no lance baseline case, the 12-lance configuration tends to force more of the inlet flow towards the top of the duct, whereas the 6-lance configuration does not affect the upstream profile significantly, (2) adding tempering air does not have a significant impact on the diffuser inlet velocity distribution and has a minor effect on the velocity and dispersion profiles at the NOX-catalyst inlet, (3) at the NOX-catalyst inlet, the 6-lance configuration with tempering air exhibits a slightly skewed flow toward the lower right corner of the duct with a coefficient of variation (COV) of 19.4%, which is slightly better than that for the 12-lance configuration, (4) at the NOX-catalyst inlet, the 12-lance configuration disperses tempering air best because its COV is 20.8% relative to a 27.3% COV for the 6-lance configuration, and (5) a comparison between the local mixing-cup temperature contours for both 12- and 6-lance configurations, based on tracer injection into the tempering air flow, confirms that the CFD model does a good job of qualitatively predicting the heat and mass transport processes in the GT simple-cycle SCR system.

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