The Effects of the 2008 Financial Crisis on the Financial Performance of Turkish Manufacturing Companies

The financial crisis of 2007-2010 also known as the Global Financial Crisis and 2008 financial crisis, was considered by many economists to be the worst financial crisis since the Great Depression of the 1930’s. It contributed to the failure of key businesses, declines in consumer wealth estimated in the trillions of U.S. dollars, substantial financial commitments incurred by governments, and a significant decline in economic activity. The financial crisis of 2007/08 which began in the United States had little impact on Turkish economy in the beginning stages. However, as a result of the economic downturn in global economics, Turkish economy has been also affected by its domino effect. The aim of this study is to characterize the impact of the 2008 global financial crisis on the financial performance of manufacturing companies listed on Borsa Istanbul, Turkey. Financial analysis will be conducted on 192 publicly listed manufacturing companies. Twelve financial ratios will be examined to determine the profitability, liquidity, activity, leverage and solvency of these companies over the period between 2006 and 2010. A data envelopment analysis will be applied to measure the performance of manufacturing firms before and after the financial crisis of 2008. Findings of this paper may be used by the managements to mitigate the effects and to enhance future performance of these companies have been uncovered. The analysis and observations will be invaluable to researchers intending to study how the manufacturing industry responds to a future slump in demand.

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The Effect of the 2008 Global Financial Crisis on the Efficiency of Large U.S. Commercial Banks

Review of Economic and Business Studies ◽

10.1515/rebs-2019-0089 ◽

2019 ◽

Vol 12 (2) ◽

pp. 11-27

Author(s):

Seyed Mehdian ◽

Rasoul Rezvanian ◽

Ovidiu Stoica

Keyword(s):

Financial Crisis ◽

Commercial Banks ◽

Global Financial Crisis ◽

The United States ◽

Commercial Banking ◽

Scale Efficiency ◽

Mortgage Loans ◽

2008 Financial Crisis ◽

Efficiency Measures ◽

The 2008 Financial Crisis

AbstractThe 2008 financial crisis, originated by securitization of sub-prime mortgage loans, had a huge impact on U.S. financial institutions and markets. We hypothesize that due to this crisis, the commercial banking industry has changed their portfolio structures and risk-taking behavior. To shed light on the response of U.S. banks to the 2008 financial crisis, we use the non-parametric approach to measure and compare the overall efficiency of large U.S. banks pre- and post-2008 financial crisis. We then decompose the overall measure of efficiency into allocative, overall technical, pure technical, and scale efficiency measures to better understand the sources of banking inefficiencies. The results indicate that large U.S. banks indeed changed their portfolios structure, and the efficiency of large commercial banks in the United States declined substantially during the financial crisis. Although it has been recovering since then, it still has not reached to the pre-crisis efficiency level.

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Fiscal and Monetary Policies in Reaction to the Financial Tsunami by the Taiwanese Government

Review of Pacific Basin Financial Markets and Policies ◽

10.1142/s0219091511002172 ◽

2011 ◽

Vol 14 (01) ◽

pp. 153-169 ◽

Cited By ~ 4

Author(s):

Hsiao-Yin Chen ◽

Cheng-Few Lee ◽

Tzu Tai ◽

Kehluh Wang

Keyword(s):

Financial Crisis ◽

Financial Market ◽

Global Financial Crisis ◽

The United States ◽

Insurance Companies ◽

Monetary Policies ◽

Policy Measures ◽

The Global Financial Crisis ◽

The Impact ◽

Taiwanese Government

The main purpose of this paper is to investigate the impact of the 2007 financial tsunami on the Taiwanese financial market. We find that, although significant for banks, security firms, and insurance companies, the effect was relatively lower if compared with that in Europe and the United States. In addition, we present fiscal and monetary policies issued by the Taiwanese government in reaction to the global financial crisis. These policy measures focused on stabilizing the financial market, reducing the level of unemployment, and creating more lending opportunities in support of Taiwanese companies. We also discuss the policy measures of the US government and other Asian countries in relation to the global financial crisis. Finally, we provide some suggestions to improve financial supervision and enhance financial reforms in Taiwan.

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Assessing The Impact Of The Global Financial Crisis On GCC Countries

Journal of Business & Economics Research (JBER) ◽

10.19030/jber.v8i2.682 ◽

2010 ◽

Vol 8 (2) ◽

Cited By ~ 4

Author(s):

Hisham H. Abdelbaki

Keyword(s):

Financial Crisis ◽

Interest Rates ◽

Global Financial Crisis ◽

The United States ◽

Font Size ◽

Negative Effects ◽

Gcc Countries ◽

The World ◽

The Global Financial Crisis ◽

The Impact

No doubt, the international financial crisis that started in the United States of America will cast its effects on all countries of the world, developed and developing. Yet these effects vary from one country to another for several reasons. The GCC countries would not escape these negative effects of this severe crisis. The negative effects of the crisis on gulf countries come from many aspects: first, decrease in price of oil on whose revenues the development programs in these countries depend; second, decrease in the value of US$ and the subsequent decrease in the assets owned by these countries in US$; third, a case of economic stagnation will prevail in the world with effects starting to appear. It is obvious that this would be reflected on the real sector in the economies causing a series of negative effects through decrease of the world demand for exports of GCC countries of oil, petrochemicals and aluminum.  Lastly, increased inflation rates with decreased interest rates will result in a decrease in real interest with an accompanying decrease in incentives for saving and consequently investment and economic development. The main aim of the research is to assess the economic effects of the global financial crisis on GCC countries. The paper results are that the big reserves of foreign currencies achieved by the GCC countries in the past few years have helped increase their ability to bear the effects of the financial effects on one hand and their ability to adopt expansionary policies through pumping liquidity to absorb the regressive effects of the crisis on the other. The paper recommends the necessity of taking precautionary procedures for the effects which will result from the expansionary policies effective in GCC countries.

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Assessing the Impact of the 2008 Financial Crisis on the Labor Force, Employment, and Wages of Persons with Disabilities in Spain

Journal of Disability Policy Studies ◽

10.1177/1044207318776437 ◽

2018 ◽

Vol 29 (3) ◽

pp. 178-188 ◽

Cited By ~ 2

Author(s):

Marco Garrido-Cumbrera ◽

Jorge Chacón-García

Keyword(s):

Financial Crisis ◽

Labor Force ◽

Educational Level ◽

People With Disabilities ◽

The United States ◽

Average Wage ◽

2008 Financial Crisis ◽

Persons With Disabilities ◽

The 2008 Financial Crisis ◽

The Impact

The financial crisis of 2008 has had a greater effect on people with disabilities than on those without disabilities in Spain. In recent years, the number of persons with disabilities registered as part of the labor force and having a higher educational level has increased. However, the unemployment rate among people with disabilities has grown at a faster pace, especially for women and young people. A similar situation has occurred with respect to the annual gross average wage; the gap between those with and without disabilities has increased in the years following the crisis. The present study reveals that Spanish public policies aimed at improving levels of employment for people with disabilities have not achieved the expected results. Here, we explore the possible causes and compare the results with those obtained in the United States.

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FINANCIAL PERFORMANCE OF ISLAMIC BANKING AFTER THE GLOBAL FINANCIAL CRISIS: A COMPARISON BETWEEN ISLAMIC COMMERCIAL BANKS AND ISLAMIC BUSINESS UNIT BANKS IN INDONESIA

Ar-Raniry International Journal of Islamic Studies ◽

10.20859/jar.v4i1.130 ◽

2017 ◽

Vol 4 (1) ◽

pp. 149

Author(s):

Laili Rahmi

Keyword(s):

Financial Crisis ◽

Financial Performance ◽

Risk Ratio ◽

Commercial Banks ◽

Global Financial Crisis ◽

Islamic Banking ◽

Business Unit ◽

Significant Difference ◽

The Global Financial Crisis ◽

The Impact

The global financial crisis has affected some industries or non-industries around the world. It has also impacted to Islamic banking in Indonesia, especially after 2007-2008. It has been recorded the Islamic banking industry in Indonesia shows a speedy recovery from the impact of the global financial crisis. Thus, this study aims to evaluate and examine the differences of Islamic banking’s financial performance after the global financial crisis in Indonesia. The financial performances in this study are profitability ratio (Return on Asset (ROA) and Return on Equity (ROE)), liquidity ratio (Financing to Deposit Ratio (FDR) and Current Asset Ratio (CAR)) and solvency risk ratio (Equity Multiplier (EM) and Debt to Equity Ratio (DER)). The samples in this study are the six Islamic banks from Islamic Commercial Banks (Bank Usaha Sharia (BUS)) and Islamic Business Unit Banks (Unit Usaha Sharia (UUS)) in Indonesia. Based on the results shows by the descriptive statistic, UUS is more effective in using their assets to generate income compared to BUS, but BUS is greater to manage their financing and more liquid than UUS whose has higher risk than BUS during 2009-2013. Independent sample t-test shows that there is significant difference in terms of profitability, liquidity and solvency risk ratio between BUS and UUS Indonesia during 2009-2013

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The Impact of Bailout on Financial Performance And Bank Risk-Taking During Financial Crisis: A Critical Systematic Review

International Journal of Business Studies ◽

10.32924/ijbs.v3i1.94 ◽

2019 ◽

Vol 3 (1) ◽

pp. 7-13

Author(s):

Dety Nurfadilah

Keyword(s):

Systematic Review ◽

Financial Crisis ◽

Financial Performance ◽

Risk Taking ◽

Global Financial Crisis ◽

Negative Impact ◽

Positive Impact ◽

Bank Risk ◽

The Global Financial Crisis ◽

The Impact

The focus on the bank bailout has been increased since the global financial crisis in 2008 in most countries. However, previous studies often discover the relationship between bailout and corporate governance. In this study, bank bailout literature will be reviewed with the focus on the impact of bailout on bank financial performance and bank risk-taking during the financial crisis. Multi-step strategy is used to collect the data from 2000 to 2016. From the 7 papers were chosen based on the criteria. This systematic review has shown that the bank bailout has a positive impact on financial performance, however, it has a negative impact on bank risk-taking for a longer period.

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9 US and EU Regulatory Responses to The Global Financial Crisis

10.1093/law/9780198807247.003.0009 ◽

2018 ◽

Author(s):

Spangler Timothy

Keyword(s):

Financial Crisis ◽

Global Financial Crisis ◽

Private Investment ◽

The United States ◽

Investment Fund ◽

The European Union ◽

International Consensus ◽

Fund Managers ◽

Investment Advisers ◽

The Impact

This chapter examines the impact of the 2007–08 global financial crisis on the regulation of private investment funds in the United States and in the European Union. It begins with a review of Dodd-Frank, which can be seen as the U.S. movement towards the international consensus that private fund managers should be directly regulated by the national financial regulator. It then considers Dodd-Frank’s repeal of the so-called ‘private adviser exemption’ previously found in the Investment Advisers Act of 1940, along with its exemption of ‘foreign private advisers’ from registration. It also explains the distinction between ‘US advisers’ and ‘non-US advisers’, Dodd-Frank’s compliance requirements for various types of investment advisers, and Rule 204(b)-1, jointly approved by the Securities and Exchange Commission and the Commodity Futures Trading Commission under the Investment Advisers Act. The chapter concludes with an analysis of the Alternative Investment Fund Managers Directive (AIFMD) and future outlook for Dodd-Frank.

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The Impact of the Global Financial Crisis on Central Banking

The Oxford Handbook of the Economics of Central Banking ◽

10.1093/oxfordhb/9780190626198.013.6 ◽

2019 ◽

pp. 170-192

Author(s):

Alex Cukierman

Keyword(s):

Financial Crisis ◽

Interest Rates ◽

Financial Stability ◽

Inflation Targeting ◽

Global Financial Crisis ◽

The United States ◽

Central Banking ◽

The Global Financial Crisis ◽

The Impact ◽

Regulatory Reforms

This chapter describes the impacts of the global financial crisis on monetary policy and institutions. It argues that during the crisis, financial stability took precedence over traditional inflation targeting and discusses the emergence of unconventional policy instruments such as quantitative easing (QE), forex market interventions, negative interest rates, and forward guidance. It describes the interaction between the zero lower bound (ZLB) and QE, and proposals, such as raising the inflation target, to alleviate the ZLB constraint. The chapter discusses the consequences of the relative passivity of fiscal policies, “helicopter money,” and 100 percent reserve requirement. The crisis triggered regulatory reforms in which central banks’ objectives were expanded to encompass macroprudential regulation. The chapter evaluates recent regulatory reforms in the United States, the euro area, and the United Kingdom. It presents data on new net credit formation during the crisis and discusses implications for exit policies.

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Taiwan’s Wealth Gap and the Evolution of Electoral Politics after the 2008 Global Financial Crisis

Asian Survey ◽

10.1525/as.2013.53.5.825 ◽

2013 ◽

Vol 53 (5) ◽

pp. 825-853 ◽

Cited By ~ 3

Author(s):

Zhenqing Zheng

Keyword(s):

Political Economy ◽

Financial Crisis ◽

Global Financial Crisis ◽

Electoral Politics ◽

Party Politics ◽

Economic Downturn ◽

Electoral Campaigns ◽

Wealth Gap ◽

The Impact

Taiwan’s economic downturn and wealth gap, under the impact of the 2008 global financial crisis, spurred livelihood/redistributive questions to become electoral issues. This paper explores the linkage between the wealth gap and electoral campaigns, and points to a new political economy trend in today’s Taiwan: class mobilization has become the new driver of party politics, with identity mobilization played down.

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Effect of the global financial crisis on the financial performance of public listed construction companies in Malaysia

Journal of Financial Management of Property and Construction ◽

10.1108/jfmpc-02-2014-0002 ◽

2014 ◽

Vol 19 (3) ◽

pp. 246-263 ◽

Cited By ~ 5

Author(s):

Hui Ying Lai ◽

Abdul Rashid Abdul Aziz ◽

Toong Khuan Chan

Keyword(s):

Financial Crisis ◽

Financial Performance ◽

Financial Management ◽

Capital Investment ◽

Global Financial Crisis ◽

Financial Analysis ◽

Content Type ◽

Construction Companies ◽

The Government ◽

The Impact

Purpose – The aim of this case study is to characterize the impact of the 2008 global financial crisis on the financial performance of public listed construction companies. Design/methodology/approach – Financial analysis was conducted on 32 public listed construction companies in Malaysia. Twelve financial ratios were examined to determine the profitability, liquidity, activity, leverage and solvency of these companies over the period between 2005 and 2010. This was complemented by a distress analysis using Altman’s Z-index. The study also used a content analysis of the Chairman’s or Managing Director’s statement to shareholders to uncover the responses and strategic initiatives undertaken by the management in response to the financial crisis. Findings – The only direct impact of the financial crisis was a reduction in profitability. Total revenues and total assets of these companies continue to grow due to increased demand for construction from year 2007 following two large capital investment programs initiated by the Malaysian Government to mitigate the potential effects of the financial crisis. Net profits rebounded back to 5 per cent by year 2010. These companies immediately responded to the crisis with more prudent financial management; curtailing expenses, cutting dividends, reducing bank borrowings, increasing equity; and to the extent of disposing of assets to mitigate losses. Research limitations/implications – The sample of only 32 public listed companies out of a total of more than 60,000 construction companies may be considered small, but these 32 companies represent nearly 20 per cent of the total construction volume for 2010. Practical implications – The study documents the effects of increased capital spending by the government to mitigate the loss of investor confidence followed by a slowdown in economic growth during a period of global financial distress. Key findings will inform on prudent financial management to withstand future financial crises. Originality/value – The responses and strategies adopted by the management to mitigate the effects and to enhance future performance of these companies have been uncovered. These are important considerations in managing construction companies; the analysis and observations will be invaluable to researchers intending to study how the construction industry responds to a future slump in demand.

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