scholarly journals Financial markets in the period of uncertainty – focus on the Slovak financial market

2020 ◽  
Vol 1 (1) ◽  
pp. 40-49
Author(s):  
Igor Turuk ◽  
Marcela Passova
Keyword(s):  
Financial Markets ◽  
Economic System ◽  
Financial Market ◽  
Crucial Role ◽  
Economic Environment ◽  
Wide Scope ◽  
Economic Activities ◽  
Short Term ◽  
Great Stress

Economic environment has changed significantly in recent days due to the COVID19 and measures the governments apply to combat it will inevitably cause the substantial shrinkage of economies due to reduced economic activities on the national as well as global levels. As a result, financial markets have been under great stress because there is no prediction on the size, scope, and duration of this situation. Simultaneously this causes a great uncertainty. It is obvious that financial markets play crucial role in the general good standing of economies because they are serving as a channel through which funds are transferred to and between entities on the market. Financial and monetary systems are a part of the economic system whereby for the latter it is important the former to be as stable as possible. In order this to be achieved or at least risks caused by uncertainty to be reduced both in short-term as well as long-term perspectives a wide scope of traditional as well as modern the financial market regulations have been applied and here we are going to present at least some of them.

Impact of FII’s and FDI’s on Indian Stock Market

2016 ◽  
Vol 1 (1) ◽  
Author(s):  
Dr. Kamlesh Kumar Shukla
Keyword(s):  
Stock Market ◽  
Financial Markets ◽  
Global Economy ◽  
Short Term ◽  
Earnings Growth ◽  
The Past ◽  
Bull Market ◽  
Indian Stock Market

FIIs are companies registered outside India. In the past four years there has been more than $41 trillion worth of FII funds invested in India. This has been one of the major reasons on the bull market witnessing unprecedented growth with the BSE Sensex rising 221% in absolute terms in this span. The present downfall of the market too is influenced as these FIIs are taking out some of their invested money. Though there is a lot of value in this market and fundamentally there is a lot of upside in it. For long-term value investors, there’s little because for worry but short term traders are adversely getting affected by the role of FIIs are playing at the present. Investors should not panic and should remain invested in sectors where underlying earnings growth has little to do with financial markets or global economy.

scholarly journals COVID-19 and Its Impact on the Indian Economy

2021 ◽  
pp. 097226292198912
Author(s):  
Vikas Barbate ◽  
Rajesh N. Gade ◽  
Shirish S. Raibagkar
Keyword(s):  
Oil Prices ◽  
Economic Activities ◽  
Short Term ◽  
Indian Economy ◽  
The Great Depression ◽  
Windfall Gain ◽  
Crude Oil Prices ◽  
Tree Approach ◽  
Silver Lining

Pessimism looms large all over. COVID-19 has been projected as worse than the Great Depression of 1930. Everyday analyst and agency reports are diving into new bottoms of a fall-down in economic activities. Indian economy, however, has a slightly different story to tell at this hour of crisis. The silver lining for the Indian economy comes from a steep fall in the crude oil prices from around $70 per barrel to a record 18 years low of $22 per barrel. This windfall gain can, to some extent, offset the direct losses due to COVID-19. At the same time, dreams like a $5 trillion economy no longer look even a remote possibility. This article takes stock of the likely impact of COVID-19 on the Indian economy in the short term and the long term. A decision-tree approach has been adopted for doing the projections.

A Note Concerning the Dynamics of Government Bond Yields

2021 ◽  
pp. 056943452098827
Author(s):  
Tanweer Akram
Keyword(s):  
Interest Rate ◽  
Financial Markets ◽  
Yield Curve ◽  
Empirical Studies ◽  
State Theory ◽  
Government Bond ◽  
Bond Yields ◽  
Short Term ◽  
Government Bonds

Keynes argued that the central bank can influence the long-term interest rate on government bonds and the shape of the yield curve mainly through the short-term interest rate. Several recent empirical studies that examine the dynamics of government bond yields not only substantiate Keynes’s view that the long-term interest rate responds markedly to the short-term interest rate but also have relevance for macroeconomic theory and policy. This article relates Keynes’s discussions of money, the state theory of money, financial markets, investors’ expectations, uncertainty, and liquidity preference to the dynamics of government bond yields for countries with monetary sovereignty. Investors’ psychology, herding behavior in financial markets, and uncertainty about the future reinforce the effects of the short-term interest rate and the central bank’s monetary policy actions on the long-term interest rate. JEL classifications: E12; E40; E43; E50; E58; E60; F30; G10; G12; H62; H63

scholarly journals A Framework for Property Developers to Survive in a Recession

10.29007/cfr2 ◽  
2018 ◽  
Author(s):  
Zunoon Parambath ◽  
Nilupa Udawatta
Keyword(s):  
Survival Strategies ◽  
Economic Activities ◽  
Short Term ◽  
Property Development ◽  
Market Shares ◽  
Negative Impacts ◽  
Set Up ◽  
High Level ◽  
Property Developers

Recession is considered as a major threat to the economy as it slows down economic activities. The property development sector is extremely responsive to these economic conditions. Thus, it is crucial to understand causes, effects and strategies for property developers to survive in a recession without any ill effects. Thus, this research aimed to develop a framework for property developers to identify appropriate survival strategies in recession. A comprehensive literature review was conducted in this research to achieve the above mentioned aim. The results of this study indicated that recession prompts negative impacts on property development sector resulting in unemployment, lower demand, production and revenue, decline in resources and high level of competition. According to the results, the survival strategies were classified into short-term and long-term strategies. The short term strategies include: implementing management tactics, cut down of operating costs, keeping financing lines set up, timely repayment of debts, setting vital new objectives for the future, undertaking shorter time span developments, specialisation in favoured market, renegotiating deals and contracts. The long-term strategies include retrenchment, restructuring, investment and ambidextrous strategies. Similarly, attention should be paid to predict any changes in the economic environment that can influence property development activities and it is necessary to carefully evaluate investment activities to increase sales, profits and market shares of property developers. Preparing for a crisis is doubtlessly the ideal approach as it can facilitate both survival and growth. Thus, the property developers can implement these suggested strategies in their businesses to enhance their practices.

Economic Complexity and Trade Diversification in the Western Hemisphere Between 1962 and 2017

2021 ◽  
pp. 115-147
Author(s):  
Jorge Mauricio Falcón Gómez ◽  
Fernando Martín Mayoral
Keyword(s):  
Financial Markets ◽  
Transaction Costs ◽  
Trade Openness ◽  
Terms Of Trade ◽  
Western Hemisphere ◽  
Short Term ◽  
Economic Complexity ◽  
Comparative Advantages ◽  
Negative Effect

Trade diversification patterns help explain the level of utilization of trade opportunities by countries, mainly the least developed. Empirical analyses show an inverse U relationship between trade diversification and level of development. Trade diversification measures used do not take into account differences in complexity of exports, and complexity indices only consider products with comparative advantages. This study seeks to cover both gaps by analyzing the differences in the determinants of trade diversification, considering the complexity of products exported by 19 Western Hemisphere countries from 1962 to 2017. The results show that after controlling for economic complexity, the inverted U relationship disappears. Development of financial markets positively affects the complexity of trade diversification in the long term, while the terms of trade that have a negative effect on trade diversification does not affect the complexity-corrected indices. In the short term, transaction costs and trade openness appear to have a significant effect.

Short-term performance of stocks after fraudulent financial reporting announcement

2019 ◽  
Vol 26 (2) ◽  
pp. 464-476 ◽  
Author(s):  
Mehmet Eryigit
Keyword(s):  
Financial Markets ◽  
Stock Returns ◽  
Financial Reporting ◽  
Abnormal Return ◽  
Fraudulent Financial Reporting ◽  
Short Term ◽  
Content Type ◽  
Publicly Traded Companies ◽  
Company Stock

Purpose Availability of accurate and reliable information in financial markets helps investors make well-informed decisions on capital allocations which is beneficial for long-term economic growth. In this regards, the role of auditing firms that inspect the financial statements of the publicly traded companies in sound operation of financial markets has been increasing. The Capital Market Board of Turkey (CMBT) has the task and responsibility of investigating fraudulent information disseminated by the firms whose stocks are traded in Borsa Istanbul. The investigations can lead to monetary penalties if fraud is proven and the results are published by CMBT in its weekly bulletin. The present study aims to examine the effect of announcements of financial irregularities of companies in CMBT Bulletin on the performance of the relevant company stock in the short term. Design/methodology/approach This study uses abnormal return, cumulative abnormal return and cumulative average abnormal return as metrics and parametric, as well as non-parametric tests to ascertain whether the announcements of financial irregularities in company operations have any statistically significant effect on the return of its stock. Findings The results indicate that publication of the financial penalty news by CMBT in its bulletin has almost no statistically significant influence on the performance of the relevant companies’ stock in Borsa Istanbul. The findings indicate that either the investors in this particular markets do not consider such news relevant to long-term success of the firm or the announcement does not provide any new information and penalties have been priced into the stock before the announcement in the bulletin. Originality/value In literature there is no more research about the effect of the announcements of administrative monetary penalties and crime complaints on the stock returns.

scholarly journals On the Asymmetries of Sovereign Credit Rating Announcements and Financial Market Development in the European Region

2019 ◽  
Vol 11 (23) ◽  
pp. 6636 ◽  
Author(s):  
Chunling Li ◽  
Khansa Pervaiz ◽  
Muhammad Asif Khan ◽  
Faheem Ur Rehman ◽  
Judit Oláh
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Credit Rating ◽  
Market Development ◽  
European Region ◽  
Short Term ◽  
Sovereign Credit ◽  
Financial Market Development ◽  
The Impact ◽  
Sovereign Credit Rating

In modeling the impact of sovereign credit rating (CR) on financial markets, a considerable amount of the literature to date has been devoted to examining the short-term impact of CR on financial markets via an event-study methodology. The argument has been established that financial markets are sensitive to CR announcements, and market reactions to such announcements (both upgrading and degrading) are not the same. Using the framework of an autoregressive distributed lag setting, the present study attempted to empirically test the linear and non-linear impacts of CR on financial market development (FMD) in the European region. Nonlinear specification is capable to capture asymmetries (upgrades and downgrades) in the estimation process, which have not been considered to date in financial market literature. Overall findings identified long-term asymmetries, while there was little evidence supporting the existence of short-term asymmetries. Thus, the present study has extended the financial market literature on the subject of the asymmetrical impact of a sovereign CR on European FMD and provides useful input for policy formation taking into account these nonlinearities. Policies solely based upon linear models may be misleading and detrimental.

Money as a Store of Value

2020 ◽  
Vol 52 (5) ◽  
pp. 925-946
Author(s):  
Guy Numa
Keyword(s):  
Economic System ◽  
Substantial Evidence ◽  
Short Term ◽  
Demand For Money ◽  
Lack Of Information ◽  
Good Investment ◽  
Investment Opportunities ◽  
Precautionary Motive ◽  
The Common

The common narrative about Jean-Baptiste Say’s treatment of money holdings is that he denied the possibility of hoarding. I show that this interpretation of Say’s thinking is erroneous. Drawing upon the various editions of Traité and Cours and other lesser-known texts, I provide substantial evidence to refute the widespread but mistaken view that, for Say, money was only a medium of exchange. In reality, not only did Say analyze long-term and short-term hoarding, but more generally, Say did envisage that money could serve as a store of value. In particular, three motives could lead individuals to keep idle balances in times of uncertainty: a precautionary motive, the lack of good investment opportunities, and the lack of information. For Say, the demand for money for precautionary motive rose during depressions, indicating that hoarding was a symptom rather than a cause of disturbance. Hoarding was an integral part of Say’s economic system that did not invalidate his law of outlets.

Using Knowledge to Cope with Stress in the NICU: How Parents Integrate Learning to Read the Physiologic and Behavioral Cues of the Infant

2003 ◽  
Vol 22 (1) ◽  
pp. 31-37 ◽  
Author(s):  
Kek Khee Loo ◽  
Michael Espinosa ◽  
Rachelle Tyler ◽  
Judy Howard
Keyword(s):  
Parental Stress ◽  
Crucial Role ◽  
Parent Child Relationship ◽  
Short Term ◽  
Learning To Read ◽  
Behavioral Cues ◽  
Child Relationship ◽  
Learning As A Process ◽  
Development Outcomes

Parental stress in the NICU has at least a short-term impact on the establishment of the parent-child relationship and potential repercussions on long-term child development outcomes. One way to help parents mitigate stress is to help them learn what they need to know about their infant’s condition and care. In this article, we examine how learning to read the infant’s physiologic and behavioral cues helps parents cope with stress. We view parental learning as a process in which parents target specific domains of information for learning according to the temporal relevance of the domain to their concerns. It is important that we recognize the fluidity of the process and anticipate what parents need to learn at different times during hospitalization. The NICU staff assumes a crucial role in reducing parental stress by delivering information that is relevant to the parents’ needs and by helping parents understand this information.

“Una fiera senza luogo”: Was Bisenzone an International Capital Market in Sixteenth-Century Italy?

2008 ◽  
Vol 68 (4) ◽  
pp. 1098-1122 ◽  
Author(s):  
LUCIANO PEZZOLO ◽  
GIUSEPPE TATTARA
Keyword(s):  
Seventeenth Century ◽  
Sixteenth Century ◽  
Financial Markets ◽  
Capital Market ◽  
International Capital ◽  
Short Term ◽  
Financial Network ◽  
International Capital Market ◽  
International Scale

From the mid-sixteenth to the early seventeenth century, Genoese bankers collected money from a variety of sources and lent it to the king of Spain. It was all made possible by the Bisenzone exchange fairs, which created an efficient financial network under Genoese control and permitted arbitrage among northern Italian financial markets. At Bisenzone, Genoese bankers raised money for these loans from a variety of sources, which reduced the risks of lending and funded the king's long-term obligations via short term loans. Bisenzone was in many ways an offshore capital market which operated on an international scale, or, in the language of the sixteenth century, a fair without a place—una fiera senza luogo.

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