scholarly journals Risk and return characteristics of environmentally and socially responsible firms in Spain during a financial downturn: 2008–2011

2015 ◽  
Vol 46 (2) ◽  
pp. 65-76 ◽  
Author(s):  
P. Ruiz-Palomino ◽  
R. Del Pozo-Rubio ◽  
R. Martínez-Cañas
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Social Performance ◽  
Stock Index ◽  
Negative Effects ◽  
Socially Responsible ◽  
Positive Effects ◽  
The Global Financial Crisis ◽  
National Economies ◽  
Social Management

The onset of the global financial crisis in 2008 undermined trust in financial markets, with immediate damages to businesses and enduring negative effects for numerous national economies. The situation also has endangered progress in terms of investments in environmental and social management (ESM) issues, because managers may be more likely to embrace the misguided notion that such investments represent a non-returnable costs that will hinder firms’ financial performance. Yet ESM is needed now more than ever, because “doing good and doing well” messages are highly appreciated by stakeholders and can substantially improve a firm’s competitiveness. This article analyzes the performance of the Spanish FTSE4Good IBEX index, compared with that of the Spanish IBEX 35 index, during the financial crisis and reveals slightly better performance for the former. Thus, considering the difficult financial context, indicators of good environmental and social performance, among other factors, might have positive effects on stock index performance. The findings offer some key implications for managerial practice.

Assessing The Impact Of The Global Financial Crisis On GCC Countries

2010 ◽  
Vol 8 (2) ◽  
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

<p class="MsoNormal" style="text-align: justify; margin: 0in 27pt 0pt;"><span style="font-family: Times New Roman;"><span style="color: #0d0d0d; font-size: 10pt; mso-bidi-language: AR-EG;">No doubt, the </span><span style="color: #0d0d0d; font-size: 10pt;">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. </span><span style="color: #0d0d0d; font-size: 10pt; mso-bidi-language: AR-EG;">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.<span style="mso-spacerun: yes;">&nbsp; </span>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. <strong></strong></span></span></p>

scholarly journals THE EFFECT OF GLOBAL FINANCIAL CRISIS ON SECURITIES PORTFOLIO OF DEPOSIT BANKS: A DIFFERENCE-IN-DIFFERENCES METHOD FOR TURKEY

2019 ◽  
Vol 7 (1) ◽  
pp. 444-466
Author(s):  
Onur ÖZDEMİR ◽  
Fatih KAYHAN
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Research Question ◽  
Financial Assets ◽  
Negative Effects ◽  
Difference In Differences ◽  
Public And Private ◽  
Econometric Analyses ◽  
Public Banks ◽  
The Global Financial Crisis

This study analyzes the effects of the global financial crisis of 2008 upon public and private deposit banks’ securities portfolio in Turkey for the quarterly period between 2005 (Q1) and 2015 (Q4). Difference-in-Differences (DiD) method is employed to solve the research question of this paper, which is whether or not there exist a significant change in differences between Turkish public and private banks’ ratio of securities (financial assets) to total assets during and after the crisis. This study concludes by suggesting that after the global financial crisis, securities to assets ratio of publicly owned deposit banks significantly differed from that of privately owned ones in Turkey.Compared to the private deposit banks, there has been a significant decrease in the specified ratio of public deposit banks. This can be explained by taking into account the very nature of public banks. The results of the econometric analyses indicate that after the crisis, unlike the private deposit banks, state-owned deposit banks held fewer securities in their total assets in Turkey, which is in line with the behavior of lending more to eliminate the negative effects of the crisis of 2008.

scholarly journals Culprits or Bystanders? Offshore Jurisdictions and the Global Financial Crisis

2017 ◽  
Vol 3 (2) ◽  
pp. 233-261 ◽  
Author(s):  
Daniel Haberly ◽  
Dariusz Wójcik
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Systematic Investigation ◽  
Cayman Islands ◽  
Negative Effects ◽  
Traditional Role ◽  
The Global Financial Crisis ◽  
Asset Backed Securities ◽  
Institutional Efficiency

ABSTRACT Questions have been raised regarding the role of low-tax offshore jurisdictions in the global financial crisis, based largely on evidence that many problematic asset-backed securities were issued from or listed in the Cayman Islands, Jersey, Ireland, and other ‘offshore’ sites. However, there has not been a systematic investigation of the offshore geography of crisis-implicated securitization. Here we fill this gap by constructing the first comprehensive jurisdictional map of the largest pre-crisis Asset-Backed Commercial Paper (ABCP) programmes, and examining the rationale for and impacts of this geography in detail. We show that offshore jurisdictions were disproportionately involved in producing the most unstable ABCP classes. However, this is difficult to explain in terms of the traditional role of offshore banking centres as sites for direct avoidance of onshore regulation and transparency. Rather, we propose a Minskian model of pre-crisis offshore ABCP production, wherein these jurisdictions specialized in alleviating incidental institutional frictions (eg double taxation) hindering onshore financial innovation. In this context, they could sometimes be legitimately described as improving the institutional ‘efficiency’ of financial markets; however, by facilitating the endogenous evolutionary instability of these markets, this apparently innocuous service had profoundly negative effects. This normative disconnect poses a conundrum for offshore reform.

scholarly journals Feminist and stratification theories' lessons from the crisis and their relevance for post-Keynesian theory

2019 ◽  
Vol 16 (2) ◽  
pp. 193-207 ◽  
Author(s):  
Stephanie Seguino
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Class Inequality ◽  
Negative Effects ◽  
Race And Gender ◽  
And Gender ◽  
The Many ◽  
The Global Financial Crisis ◽  
Fiscal And Monetary Policy

The many contributions of post-Keynesian economists to understanding the causes of the global financial crisis that began in 2008 could be enhanced by integrating the research by feminist and stratification economists. These groups have produced a body of work analysing trends in inter-group and intra-class inequality that led up to the crisis and theoretically inform how we assess the distribution of the negative effects of the crisis by class, race, and gender. Further, this body of work has assessed the potential for fiscal and monetary policy to promote greater equality while reducing intra-class competition and conflict.

scholarly journals Konkurencyjność przedsiębiorstw w dobie globalnego kryzysu finansowego

2010 ◽  
Vol 6 ◽  
pp. 78-91 ◽  
Author(s):  
Radosław Repetowski
Keyword(s):  
Economic Growth ◽  
Financial Crisis ◽  
Market Economy ◽  
Economic Activity ◽  
Global Economy ◽  
Global Financial Crisis ◽  
Stock Index ◽  
Limited Volume ◽  
The Global Financial Crisis ◽  
A Company

Competition is a process that occurs in every aspect of human activity especially when it comes to economic activity within the market economy, which is one of the fundamental forms of social organization of economic activity. Traders are forced to make decisions concerning both the production and resource allocation, which is an inherent factor in competition. One of the preconditions for the process of competition is the scarcity of a resource in relation to the demand for the goods. In the case of a market economy we are dealing with a limited volume of demand for the asset. So competition is one of the features of a market economy. The continuous competition of traders in order to achieve the same goal (profit maximizing), is a necessary factor in the success or failure of a company, industry, region or national economy. The situation becomes even more complicated when companies are forced to act in times of crisis. The crisis should be understood as a worldwide collapse of the economy manifested primarily by a fall of the stock index, decrease of production, rising unemployment, declining economic growth, declining revenues or by the failure of the financial system. The global economy is currently in a deep financial crisis, which is why, in order to survive, companies operating in that environment must have the ability to quickly adapt to the rapidly changing environment. The author of this text presents the essence of competition as an economic phenomenon, the causes of the global financial crisis and possible actions and strategies that may enable companies to compete effectively in the present crisis.

scholarly journals INDEBTEDNESS IN THE TIME OF THE COVID-19 PANDEMIC – CASE OF BOSNIA AND HERZEGOVINA

2021 ◽  
Vol 6 (1) ◽  
pp. 75-88
Author(s):  
Mila Gadžić ◽  
◽  
Jelena Jurić
Keyword(s):  
Financial Crisis ◽  
Bosnia And Herzegovina ◽  
Global Financial Crisis ◽  
Debt Crisis ◽  
Economic Consequences ◽  
Real Economy ◽  
Negative Effects ◽  
The Great Depression ◽  
Spanish Flu ◽  
The Global Financial Crisis

The COVID-19 pandemic is a global unprecedented event since the Spanish flu pandemic in 1918. The IMF addressed this pandemic-caused economic fallout as the worst crisis since the Great Depression. Entire continents are in lockdowns just with essential services and activities. Unlike the global financial crisis that derived from a financial sector, this pandemic-caused crisis is shock in real economy, both on the demand and supply side. During previous crisis, especially during global financial crisis, most governments responded with austerity measures and fiscal consolidation. This time it is different. Governments worldwide approved additional expenditures, tax cuts, government bond issuance and borrowing in order to mitigate economic consequences of the looming crisis. One of the pandemic’s result is dramatic increase of indebtedness that could affect efficiency of fiscal and monetary responses created before to fight against crisis. This sudden and strong COVID-10 shock especially effects developing countries and emerging markets, but also advanced countries with already limited fiscal space. The COVID-19 pandemic-caused crisis evoked again fear of debt crisis and expanded a number of countries with indebtedness problems. Bosnia and Herzegovina as developing country with complex state structure and its own macroeconomic, political, institutional problems is not spared of negative effects of the pandemic. In order to save economy when recovery from the previous crisis is still in swing, Bosnia and Herzegovina did emergency measures to support economy. Increase of government spending in addition to reduced tax revenues have created the need for budget rebalance and additional borrowing. The aim of this work is to show macroeconomic situation and problems in the EU countries, countries in the region and especially in Bosnia and Herzegovina before the pandemic as well as current problems, their reactions to COVID-19 pandemic and necessary financial support that could cause increase of indebtedness. Keywords: COVID-19 pandemic, indebtedness, Bosnia and Herzegovina

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