Research on Influence of the Balance Sheet Channel Effect on Enterprise Investment

2014 ◽  
Vol 998-999 ◽  
pp. 1610-1613
Author(s):  
Jing Jing Fu
Keyword(s):  
Balance Sheet ◽  
Subprime Mortgage ◽  
Coverage Ratio ◽  
Corporate Influence ◽  
Channel Effect ◽  
Balance Sheet Channel ◽  
Mortgage Crisis ◽  
Before And After ◽  
Channel Effects ◽  
The Impact

In this paper, we selected 98 listed companies as simples and by studying their investment behavior before and after the U.S. subprime mortgage crisis in 2008, we make an empirical analysis of the effect of the balance sheet channel on China's enterprises. Adopt changes in net assets due to changes in asset prices as a variable measure of the balance sheet channel effects, reflecting the impact of the mechanism of direct investment. The results show that: before the crisis, the balance sheet channel effect for low interest coverage ratio greater corporate influence; after the crisis, the impact of the mechanism for the enterprise becomes low interest coverage ratio is not significant, but the impact of high interest coverage ratio of enterprises is still significant, and the impact is greater than before.

scholarly journals SUBPRIME MORTGAGE CRISIS IN THE UNITED STATES IN 2007–2008: CAUSES AND CONSEQUENCES (PART I)

Ekonomika ◽  
2015 ◽  
Vol 93 (4) ◽  
pp. 85-118 ◽  
Author(s):  
Vaidotas Pajarskas ◽  
Aldona Jočienė
Keyword(s):  
United States ◽  
Federal Reserve ◽  
The United States ◽  
Mortgage Market ◽  
Subprime Mortgage ◽  
Market Expansion ◽  
Mortgage Crisis ◽  
Subprime Mortgage Crisis ◽  
The Government ◽  
The Impact

The main purpose of this article is to determine which factors and how contributed to the subprime mortgage crisis in the United States in 2007–2008, what their causal links and effects on the markets and the whole economy were, and to assess what actions could have been taken by the Federal Reserve and the Government in order to mitigate or prevent the consequences of subprime mortgage crisis and housing bubble. In order to obtain the research results, the authors performed a qualitative analysis of the scientific literature on the course of events and their development that led to the subprime mortgage crisis, and focused on the insufficiently regulated home mortgage market expansion, the impact on the subprime mortgage crisis of financial innovations and financial engineering, poorly evaluated systemic risks and policy undertaken by both the U.S. Government and the Federal Reserve before and after the crisis. The quantitative research focused on two main parts: firstly, analysis of the dependence between the causes of subprime mortgage crisis and the consequences, using a statistical and regression analysis, and secondly, an alternative path the Government and the Federal Reserve could have taken in their policy actions and the results they could have produced. The authors believe that the results of the research could give useful guidelines to the central bankers and government officials on how to make long-term decisions that can help in preparing for the financial distress, mitigating the consequences when the crisis strikes, accelerating the recovery and even preventing the crisis it in the future. The second part of the qualitative research will appear in the next issue of the journal.

The Impact of International Hot Money in International Commodity Future Markets during the Subprime Mortgage Crisis

2010 ◽  
Vol 171-172 ◽  
pp. 744-747
Author(s):  
Qing Ye ◽  
Li Yan Han
Keyword(s):  
Correlation Coefficients ◽  
Price Volatility ◽  
Return Rate ◽  
Subprime Mortgage ◽  
International Commodity ◽  
Mortgage Crisis ◽  
Subprime Mortgage Crisis ◽  
Commodity Future ◽  
The Impact ◽  
Hot Money

Behavior of traders including investors and speculators in commodity future markets are studied before and after the subprime mortgage crisis. We put our attention on quantity of traders hold positions instead of price volatility or capital return rate of commodity future markets. By standardize correlation coefficients of net positions we try to quantify the impact of speculative funds on behalf of international hot money in international commodity futures markets in the subprime mortgage crisis. Parametric and non-parametric tests are used in this paper. The empirical results reveal that investment directions of speculators do change in crisis and they connect more tightly with markets compared with investors for that their find more opportunities and higher return rate during the Subprime mortgage crisis.

scholarly journals The Impact of Subprime Mortgage Crisis on Islamic Banking and Islamic Stock Market

2012 ◽  
Vol 65 ◽  
pp. 668-673 ◽  
Author(s):  
Bakri Abdul Karim ◽  
Wong Siew Lee ◽  
Zulkefly Abdul Karim ◽  
Mohamad Jais
Keyword(s):  
Stock Market ◽  
Islamic Banking ◽  
Subprime Mortgage ◽  
Mortgage Crisis ◽  
Subprime Mortgage Crisis ◽  
The Impact

scholarly journals An Analysis of Gains to US Acquiring REIT Shareholders in Domestic and Cross-Border Mergers before and after the Subprime Mortgage Crisis

2018 ◽  
Vol 10 (12) ◽  
pp. 4586
Author(s):  
Alan Wang ◽  
Yu-Hong Liu ◽  
Yu-Chen Chang
Keyword(s):  
Structural Changes ◽  
Abnormal Returns ◽  
Subprime Mortgage ◽  
Crisis Period ◽  
Cross Border ◽  
Increased Risk ◽  
Mortgage Crisis ◽  
Before And After ◽  
Subprime Mortgage Crisis ◽  
Acquisition Announcements

This paper examines the abnormal returns of acquiring real estate investment trusts (REITs) around the announcement of acquisitions before and after the subprime mortgage crisis. Based on 182 domestic and cross-border US REIT acquisition announcements from 2005 to 2010, the acquiring trusts experienced a 0.73% abnormal return, on average. When the sample was divided into pre-crisis, crisis, and after-crisis subsamples, the acquiring trusts enjoyed the largest abnormal returns (1.86%) for domestic acquisitions during the crisis period. Before the crisis, when the acquisition was cross-border, the target was private, or the transaction was cash-financed, the acquiring trust experienced larger abnormal returns. During the crisis period, the acquiring trust gained larger abnormal returns when the transaction value was larger. After the crisis period, the acquiring trust achieved less abnormal returns in cross-border mergers. For both pre- and after-crisis periods, the shareholders of the acquirer enjoyed larger abnormal returns when the mergers were cash-financed, regardless of whether the target was public or privately held. Neither the blockholder monitoring nor the signaling hypothesis can explain such value gains. The structural changes in the acquirer’s abnormal returns are possibly due to the increased risk aversion of the market participants following the crisis.

Are Green Fund Investors Really Socially Responsible?

2012 ◽  
Vol 15 (04) ◽  
pp. 1250023 ◽  
Author(s):  
Huimin Chung ◽  
Han-Hsing Lee ◽  
Pei-Chun Tsai
Keyword(s):  
Fund Flows ◽  
Socially Responsible ◽  
Subprime Mortgage ◽  
Fund Flow ◽  
The Social ◽  
Significant Difference ◽  
Mortgage Crisis ◽  
Prior Literature ◽  
Subprime Mortgage Crisis ◽  
The Impact

This paper investigates the performance, fund characteristics, fund flow of green fund and the impact of subprime mortgage crisis on fund flow volatility. In terms of fund performance, our results show that there is no consistently significant difference between performance of green funds and conventional funds. As for fund characteristics, green funds are more sensitive to market and size risks compared to conventional funds, while they are less sensitive to value and momentum factors than conventional funds. Consistent with prior literature, there exists an asymmetric phenomenon for green funds, that is, fund flows of green funds are significantly related to lagged positive return but not significantly associated with lagged negative returns in normal market conditions. During the subprime mortgage crisis, both mature green and mature conventional funds experienced fund outflows. However, volatility of green funds flows is much lower than their conventional counterparts. Our results suggest that green fund investors can derive utility from the social responsibility attribute, and they are really more socially responsible when making investment decisions.

scholarly journals Bank Valuation and Its Connections with the Subprime Mortgage Crisis and Basel II Capital Accord

2008 ◽  
Vol 2008 ◽  
pp. 1-44 ◽  
Author(s):  
C. H. Fouche ◽  
J. Mukuddem-Petersen ◽  
M. A. Petersen ◽  
M. C. Senosi
Keyword(s):  
Balance Sheet ◽  
Basel Ii ◽  
Loan Loss ◽  
Subprime Mortgage ◽  
Macroeconomic Conditions ◽  
Time Dynamics ◽  
Loan Rate ◽  
Mortgage Crisis ◽  
Subprime Mortgage Crisis ◽  
The Business Cycle

The ongoing subprime mortgage crisis (SMC) and implementation of Basel II Capital Accord regulation have resulted in issues related to bank valuation and profitability becoming more topical. Profit is a major indicator of financial crises for households, companies, and financial institutions. An SMC-related example of this is the U.S. bank, Wachovia Corp., which reported major losses in the first quarter of 2007 and eventually was bought by Citigroup in September 2008. A first objective of this paper is to value a bank subject to Basel II based on premiums for market, credit, and operational risk. In this case, we investigate the discrete-time dynamics of banking assets, capital, and profit when loan losses and macroeconomic conditions are explicitly considered. These models enable us to formulate an optimal bank valuation problem subject to cash flow, loan demand, financing, and balance sheet constraints. The main achievement of this paper is bank value maximization via optimal choices of loan rate and supply which leads to maximal deposits, provisions for deposit withdrawals, and bank profitability. The aforementioned loan rates and capital provide connections with the SMC. Finally, OECD data confirms that loan loss provisioning and profitability are strongly correlated with the business cycle.

BALANCE SHEET ECONOMICS OF THE SUBPRIME MORTGAGE CRISIS

2011 ◽  
Vol 23 (1) ◽  
pp. 1-25 ◽  
Author(s):  
Masako Tsujimura ◽  
Kazusuke Tsujimura
Keyword(s):  
Balance Sheet ◽  
Subprime Mortgage ◽  
Mortgage Crisis ◽  
Subprime Mortgage Crisis

scholarly journals DUAL MONETARY INSTRUMENTS’ IMPACT ON THE PERFORMANCE AND STABILITY OF JAKARTA ISLAMIC INDEX

2018 ◽  
Vol 3 (2) ◽  
pp. 315-348
Author(s):  
Bazari Azizi
Keyword(s):  
Monetary Policy ◽  
Financial Market ◽  
Capital Market ◽  
Balance Sheet ◽  
Monetary Policies ◽  
Monetary System ◽  
Balance Sheet Channel ◽  
Monetary Policy Transmission Mechanism ◽  
The Stability ◽  
The Impact

The monetary instruments and capital market are closely related as these tools are operating in the money market. The influence of the monetary policy to the stocks and indexes’ performance has been the research interest in the previous literature. The monetary policies along with its’ instruments are transmitted not only in banking lending channel to affect the economic growth but also in the balance sheet channel. However, the conventional tools and policies are not adhering the sharia tenets. Hence, the sharia-compliance monetary system is emanated in Muslim majority countries, including Indonesia. Additionally, this establishment of policy is coupled with the emergence of the Islamic capital market in Indonesia. Thus, the analysis of the impact of either Islamic or conventional monetary system on the Islamic capital market in Indonesia that represented by the Jakarta Islamic Index (JII) is essential to look at its’ furthers effect on financial market growth.This study examines the impact of the Islamic and conventional monetary variables on the performance of the Jakarta Islamic Index in Indonesia. It also investigates the stability of the JII under the occurrence of the shock derived from the monetary instruments. Monthly closing value of the JII, conventional or interest rate, Islamic policy rate, and monetary base are assessed to address the research objectives in this paper. This study employs the VAR-VECM and Granger analysis to analyse the phenomenon. The monetary policy transmission mechanism through the financial market channel is the main channel that will be investigated in this paper. The study comprises of introduction, literature review, methodology, and lastly the discussion and conclusion.

scholarly journals A Masterpiece from the Subprime Mortgage Crisis in America

2020 ◽  
Vol 8 (06) ◽  
pp. 1420-1426
Author(s):  
Muhammad Andri Radiany ◽  
Ali Farhan ◽  
Roy Sumaryono ◽  
Wulandari Harjanti
Keyword(s):  
United States ◽  
Interest Rates ◽  
The United States ◽  
Economic Conditions ◽  
Subprime Mortgage ◽  
Systemic Risks ◽  
Mortgage Crisis ◽  
Before And After ◽  
Subprime Mortgage Crisis ◽  
Descriptive Statistical Analysis

Subprime mortgage crisis is a phenomenon that has a major impact on the world economy. The crisis that began in the United States has infected many other economically related countries with the United States. This study tries to parse how the economic conditions of the United States in the era before and after the crisis. From the results of the descriptive statistical analysis test on the economic conditions of the United States in the period 1998 - 2017, it was found that in the variables of inflation, investment, GDP, and interest rates there were negative differences between before and after the crisis, even though statistically did not show a significant effect, except for interest rate variable. This phenomenon shows that monetary policy oriented to controlling interest has the potential to trigger systemic risks to the economy.

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