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Financial Crisis (financial + crisis)
Kinds of Financial Crisis Selected AbstractsTHE IMF'S MONETARY PRESCRIPTION FOR THE SOUTHEAST ASIAN FINANCIAL CRISES: WHAT IF ,?ECONOMIC PAPERS: A JOURNAL OF APPLIED ECONOMICS AND POLICY, Issue 2 2000MARGARET FREEBAIRN First page of article [source] FINANCIAL CRISES AND INTERNATIONAL STOCK MARKET VOLATILITY TRANSMISSIONAUSTRALIAN ECONOMIC PAPERS, Issue 3 2010INDIKA KARUNANAYAKE This paper examines the interplay between stock market returns and their volatility, focusing on the Asian and global financial crises of 1997,98 and 2008,09 for Australia, Singapore, the UK, and the US. We use a multivariate generalised autoregressive conditional heteroskedasticity (MGARCH) model and weekly data (January 1992,June 2009). Based on the results obtained from the mean return equations, we could not find any significant impact on returns arising from the Asian crisis and more recent global financial crises across these four markets. However, both crises significantly increased the stock return volatilities across all of the four markets. Not surprisingly, it is also found that the US stock market is the most crucial market impacting on the volatilities of smaller economies such as Australia. Our results provide evidence of own and cross ARCH and GARCH effects among all four markets, suggesting the existence of significant volatility and cross volatility spillovers across all four markets. A high degree of time-varying co-volatility among these markets indicates that investors will be highly unlikely to benefit from diversifying their financial portfolio by acquiring stocks within these four countries only. [source] AFRICA/GLOBAL FINANCIAL CRISIS: Funding GapAFRICA RESEARCH BULLETIN: ECONOMIC, FINANCIAL AND TECHNICAL SERIES, Issue 2 2009Article first published online: 7 APR 200 No abstract is available for this article. [source] AFRICA/GLOBAL FINANCIAL CRISIS: The Way ForwardAFRICA RESEARCH BULLETIN: ECONOMIC, FINANCIAL AND TECHNICAL SERIES, Issue 1 2009Article first published online: 9 MAR 200 No abstract is available for this article. [source] CREDIT CRUNCH AND HOUSEHOLD WELFARE, THE CASE OF THE KOREAN FINANCIAL CRISIS,THE JAPANESE ECONOMIC REVIEW, Issue 4 2008SUNG JIN KANG We examine how the credit crunch in Korea in the late 1990s affected household behaviour and welfare. Using 1996,1998 household panel data, we estimate a consumption Euler equation, augmented by endogenous credit constraints. Korean households coped with the negative shocks of the 1997 credit crunch by reducing consumption of luxury items while maintaining food, education and health related expenditures. Our results show that, in 1997,1998, during the crisis, the probability of facing credit constraints and the resulting expected welfare loss from the binding constraints increased significantly, suggesting the gravity of the credit crunch at the household level. [source] TESTING THE NET BUYING PRESSURE HYPOTHESIS DURING THE ASIAN FINANCIAL CRISIS: EVIDENCE FROM HANG SENG INDEX OPTIONSTHE JOURNAL OF FINANCIAL RESEARCH, Issue 1 2006Kam C. Chan Abstract We investigate net buying pressure in the Hong Kong Hang Seng Index options market during the Asian financial crisis from July 1997 to August 1998. Our findings suggest that during this period, the dramatic changes in volatility overwhelmed the dynamics of supply and demand in the options market. The extremely high realized volatility drove market participants' expectations about future market volatility in the early months of the crisis. Findings during the late-crisis, pre-crisis, and post-crisis periods are consistent with the net buying pressure hypothesis. [source] Front and Back Covers, Volume 24, Number 6.ANTHROPOLOGY TODAY, Issue 6 2008December 200 Front cover caption, volume 24 issue 6 Front cover A television newscaster reports from a prayer meeting organized in support of Barack Obama on the eve of the US election in Kogelo, Western Kenya. Foreign and local journalists descended on this small village which is home to Mama Sarah, Obama's paternal step-grandmother. As this picture was taken, religious and cultural leaders, schoolchildren and local politicians were praying for the success of their ,son', although they were also careful to offer up prayers for John McCain. The newscaster stands in front of a painting by local artist Joachim Onyango Ndalo, famous for his colourful portrayals of historical events, African presidents and other world leaders. The painting shows Obama surrounded by political figures, including Colin Powell, Bill Clinton and the British queen. In January of this year Ndalo was forced to flee from his home in Western Kenya to Uganda during the violence that followed Kenya's contested elections between the Party of National Unity (PNU), led by President Kibaki, and the Orange Democratic Movement (ODM), the opposition party led by Raila Odinga. Although pro-Odinga, the artist was branded a traitor by some members of his community for accepting a commission to paint Stanley Livondo, a Kibaki supporter and opponent of Odinga for the Langata parliamentary seat. Ndalo's workshop and paintings were destroyed. He has since returned home and plans to send his painting to America as a gift to Obama for his inauguration. Back cover caption, volume 24 issue 6 FINANCIAL CRISIS: The financial crisis unfolding since September this year has wiped out savings and threatens livelihoods across the world. Future generations will have to pay for the nationalization of gigantic debts that we never thought we had. This crisis, the worst of its kind since the Great Depression, demands an overhaul of the world's financial system. What might anthropologists contribute, beyond our insight into the world's informal economies and peasant markets? In this issue, Keith Hart and Horacio Ortiz argue that the breakdown of the economists' intellectual hegemony demands a new approach to money more sensitive to its social dimensions and to redistributive justice. A fresh reading of Mauss and Polanyi would be one good place to start. Stephen Gudeman, in his diary of witnessing the financial markets in October, argues for the relevance of anthropological concepts such as ,spheres of exchange', a realm of people, relationships and materials that cuts across market processes and lies beyond the economic vision of Wall Street and Washington, but should be represented in policy-making. Anthropologists have produced many detailed examples of how communities make use of markets within economies. Now, as the world searches for a new system of governance, is the time for anthropologists to make their voices heard. Perhaps a President's Council of Anthropological Advisors might complement the existing Council of Economic Advisors. What better time for such a proposal than the election of a new US president with roots in Hawaii, Kansas, Indonesia and Kenya, whose mother was herself an anthropologist? [source] Book Reviews: Financial Crises, Liquidity, and the International Monetary SystemECONOMICA, Issue 282 2004Ronald I. McKinnon No abstract is available for this article. [source] Contagion Phenomena in Financial Crises: Evidence from the Portuguese and Spanish Exchange Rate Crises in the Early 1990sINTERNATIONAL FINANCE, Issue 2 2003Margarida AbreuArticle first published online: 3 SEP 200 Based on the experience of the Portuguese and Spanish financial crises in the early 1990s, this paper suggests that the spillover of exchange rate crises may reveal a particular dimension of the financial contagion effect: the presumption of mimetic behaviour by monetary authorities. This paper analyses the evolution of the credibility of the Escudo and the Peseta. We set out to test the existence of a contagion effect: that is, in what way does the polarization of exchange rate expectations in a scenario of devaluation of one currency explain the building up of a similar scenario for the other currency? We also examine the transmission mechanisms of such a scenario. Our results suggest the existence of a one-way contagion effect, of the Escudo by the Peseta. Speculative attacks against the Peseta necessarily give rise to speculative attacks against the Escudo, regardless of the evolution of the ,fundamentals' of the Escudo. In this case, the spillover of financial crises could be better understood by the anticipated mimetic behaviour of monetary authorities, rather than by the geographical proximity of the countries in question or by the identical performance of the economies of both. [source] The Change in Corporate Transparency of Korean Firms After the Asian Financial Crisis: an analysis using analysts' forecast dataCORPORATE GOVERNANCE, Issue 6 2007Jinho Chang Using analysts' forecast error and forecast dispersion of firms covered by the I/B/E/S database, this study examines the change in information asymmetry of Korean firms around the financial crisis of 1997. Results show that the information asymmetry of Korean firms is lower after the financial crisis than before, implying that corporate transparency did, in effect, improve with the change in business environment. In addition, this study finds that chaebol firms have higher information asymmetry than non-chaebol firm, and also that the corporate transparency improvement of chaebol firms is not higher than that of non-chaebol firms in the post-crisis period despite the reforms particularly targeted to chaebol firms after the financial crisis. [source] Equity-Based, Asset-Based and Asset-Backed Transactional Structures in Shari'a -Compliant Financing: Reflections on the Current Financial Crisis,ECONOMIC PAPERS: A JOURNAL OF APPLIED ECONOMICS AND POLICY, Issue 3 2009Razi Pahlavi Abdul Aziz F33; G21; P45; P49 This paper presents interest-free equity-based, asset-based and asset-backed transactional structures endorsed by Shari'a -compliant finance. These structures could explain the potential and relative insulation, yet not immunity, of Islamic financial institutions from the financial crisis. Although Shari'a -compliant financing cannot solve the current financial crisis, the recovering market could consider incorporating some of the insulating principles underlying Shari'a -compliant financing and securitization products, as exemplified in the sample of Shari'a -compliant products in this paper, so as to offer better consumer protection. [source] Hedge Funds in the Aftermath of the Financial CrisisFINANCIAL MARKETS, INSTITUTIONS & INSTRUMENTS, Issue 2 2009Stephen Brown No abstract is available for this article. [source] Fair Value Accounting and the Financial Crisis: Messenger or Contributor?,ACCOUNTING PERSPECTIVES, Issue 3 2009Michel L. Magnan ABSTRACT This commentary discusses how fair value accounting (FVA) affects the nature of financial reporting, especially for financial institutions that were deeply affected by the 2007-9 financial crisis. Toward that end, I address four questions. First, I review FVA's role in financial reporting, emphasizing its development over time. While the commentary's focus is on the interface between financial instruments and FVA, its reach extends well beyond financial instruments. Thereafter, I discuss the measurement and valuation challenges that arise from the use of FVA in financial reporting. Then, I analyze the evidence, analytical and empirical, on the role that FVA may have played in the financial crisis of 2007-9. Since, to some extent, the crisis is still unfolding, there is limited yet very insightful empirical evidence on this issue. The evidence does suggest that FVA, in combination with its use by regulators, may have severely undermined the financial condition of some institutions. The effect was amplified for institutions holding assets in markets that saw their liquidity dry up during the crisis. In other words, FVA may have amplified the crisis. Finally, I discuss some implications that we can draw from the crisis about the merits and risks underlying FVA. For instance, I conclude that, in a search for relevance, the use of FVA in financial reporting may accelerate its disconnection from a firm's business reality. [source] Globalization, Financial Crisis, and Industrial Relations: The Case of South KoreaINDUSTRIAL RELATIONS, Issue 3 2003Dong-one Kim The South Korean case shows that the globalization trend in the 1990s and the 1997,1998 financial crisis had two contrasting effects on labor rights. First, these developments resulted in negative labor market outcomes: increased unemployment, greater use of contingent workers, and widened income inequalities. On the other hand, they led international organizations such as the Organization for Economic Co-operation and Development (OECD) and the International Labor Organization (ILO) to play important roles in improving labor standards in Korea. Also, continued restructuring drives prompted unions to merge into industrial unions and wage strikes with increased frequency and intensity. Contrary to the common belief, the Korean case shows that globalization and intensified competition resulted in stronger and strategic responses from labor by stimulating employees' interest in and reliance on trade unionism. [source] Tourism flows between India and SingaporeINTERNATIONAL JOURNAL OF TOURISM RESEARCH, Issue 5 2003Faizal Yahya The tourism industry has become increasingly important as a source of revenue and employment for countries in Southeast Asia. Within the Southeast Asian region, intraregional travel has also seen an upsurge since the Asian Financial Crisis of 1997. More attention is also being paid to attract other Asian tourists from China, India, Japan and South Korea to the region. Competition to be tourism hubs in the region has seen countries such as Singapore developing an array of incentives to entice inbound foreign tourists to its shores. The aim of this paper is to examine the growing importance of India as a source of inbound tourists for countries in Southeast Asia and in particular Singapore. India is an apt case study because of its long historical and cultural links with the region. Another main motivation for examining inbound tourists from India is India's engagement with the Southeast Asian region through its ,Look East' policy. Following from its economic reforms and liberalisation of 1991, India has sought to strengthen economic links with ASEAN member states through a range of economic sectors including tourism. The 1991 Indian economic liberalisation has also created an upsurge of Indian business travellers who are exploring investment and business opportunities in the Southeast Asian region. With India's economic liberalisation of 1991, an expanding middle class has come to view foreign travel as a necessity. In turn, ASEAN member states, such as Singapore in particular, which is heavily dependent on its services sector, including tourism, for revenue, have chosen to regionalise its tourism operations by collaborating and investing in projects in India to woo more Indian tourists. Competition in the tourism sector among ASEAN countries has increased the urgency for Singapore to reinvent itself to attract foreign tourists and implement a number of initiatives to maintain its share of the tourism market. Copyright © 2003 John Wiley & Sons, Ltd. [source] The Rise and Fall of Chinese Immigration to Canada: Newcomers from Hong Kong Special Administrative Region of China1 and Mainland China, 1980,20002INTERNATIONAL MIGRATION, Issue 3 2005Peter S. Li ABSTRACT An emerging perspective in the study of global diasporas stresses the effect of economic globalization and migration shifts in reshaping the population and identifying the formation of diaspora communities. This paper analyses the immigration patterns from Hong Kong and mainland China to Canada between the 1980s and 1990s, and shows that the migration shifts have been influenced by political and economic forces in Hong Kong and China, as well as changes in Canada's immigration policy. The imminent return of Hong Kong to China in 1997 and its uncertain political future in the 1990s were often cited as the main reasons for Hong Kong's large emigration in the late 1980s and early 1990s. In reality, the rising volume of Hong Kong emigration was prompted by the 1989 Tiananmen Square incident in China and its aftermath, and by the booming economy of Hong Kong in the early 1990s that created the means for many middle-class Chinese to emigrate. At the same time, Canada's expansion of the Business Immigration Program in the mid-1980s also benefited immigrant entrepreneurs from Hong Kong. In contrast, the Asian Financial Crisis of 1997 did not deter the economic growth of China. Immigration from China rose after 1989 when Canada allowed Chinese students studying in Canada to immigrate, but it was after the mid-1990s that immigration from China expanded due to Canada's greater emphasis on admitting economic immigrants and to China's growing middle class. The continuous arrival of well-educated and urban-based immigrants from China is likely to change the population composition and identity complexity of the Chinese community in Canada. LES HAUTS ET LES BAS DE L'IMMIGRATION CHINOISE AU CANADA : LES NOUVEAUX VENUS ORIGINAIRES DE LA RÉGION ADMINISTRATIVE SPÉCIALE DE HONG KONG1 ET DE LA CHINE CONTINENTALE, 1980,2000 Une perspective émergente dans l'étude des diasporas mondiales souligne l'effet de la mondialisation économique et des glissements migratoires dans le remodelage des populations et l'identification de la formation des communautés issues des diasporas. Cet ouvrage analyse les comportements migratoires en provenance de Hong Kong et de la Chine continentale en direction du Canada entre les années 80 et 90, et montre que les glissements migratoires ont été influencés par des forces politiques et économiques à l',uvre à Hong Kong et en Chine, ainsi que par des changements intervenus au niveau de la politique canadienne d'immigration. Le retour imminent de Hong Kong à la Chine en 1997 et son avenir politique incertain dans les années 90 ont souvent été cités comme les principales raisons pour l'importante émigration qui s'est produite au départ de Hong Kong à la fin des années 80 et au début des années 90. En réalité, l'ampleur croissante de l'émigration en provenance de Hong Kong a été suscitée par les événements de la place Tiananmen qui ont eu lieu en 1989 et par leurs retombées, ainsi que par l'essor économique de Hong Kong au début des années 90, ayant procuréà bon nombre de Chinois de la classe moyenne les moyens d'émigrer. Parallèlement, l'expansion du programme d'immigration commerciale mis en place par le Canada au milieu des années 80 a également profité aux entrepreneurs immigrants de Hong Kong. Par comparaison, la crise financière asiatique de 1997 n'a pas produit d'effet dissuasif sur la croissance économique de la Chine. L'immigration en provenance de Chine continentale a augmenté après 1989, lorsque le Canada a autorisé les étudiants chinois se trouvant sur son sol à immigrer légalement, mais ce n'est qu'après le milieu des années 90 que l'immigration en provenance de Chine s'est accélérée sous l'effet de la politique canadienne facilitant l'entrée au Canada des immigrants économiques et aussi de la progression de la classe moyenne en Chine. L'arrivée continue d'immigrants chinois instruits et originaires des villes est susceptible de modifier la composition de la population et la complexité identitaire de la communauté chinoise au Canada. EL AUMENTO Y CAÍDA DE LA INMIGRACIÓN CHINA AL CANADÁ: RECIÉN LLEGADOS DE LA REGIÓN ADMINISTRATIVA ESPECIAL DE HONG KONG1 Y DE CHINA, 1980,2000 En los estudios realizados sobre las diásporas en el mundo, se observa el efecto que tienen la globalización económica y los cambios migratorios en la reconfiguración de la población y en la conformación de comunidades de la diáspora. En este artículo se examinan los patrones de inmigración de Hong Kong y China al Canadá en los años ochenta y noventa, y se demuestra que los cambios en la migración resultan de fuerzas políticas y económicas en Hong Kong y China, así como de cambios en la política de inmigración del Canadá. La inminente devolución de Hong Kong a la China en 1997 y la incertidumbre sobre su futuro político, fueron consideradas como la principal razón de la numerosa inmigración de Hong Kong a finales de los años ochenta y principios de los noventa. En realidad, el creciente número de emigrantes de Hong Kong se debió al incidente en la Plaza de Tiananmen en China en 1989 y a sus consecuencias, y al auge económico de Hong Kong a principios de los años noventa, que permitió que la clase media china pudiera emigrar. Al mismo tiempo, la ampliación del Programa de Inmigración Empresarial instaurado por el Canadá a mediados de los años ochenta también atrajo a empresarios inmigrantes provenientes de Hong Kong. Por su parte, la crisis financiera asiática de 1997 no afectó el crecimiento económico en la China. La inmigración de China aumentó tras 1989, cuando el Canadá autorizó a la inmigración de los chinos que estudiaban en el Canadá, pero fue ulteriormente, a mediados de los años noventa, que la inmigración desde China se amplió debido a que el Canadá decidió aceptar a inmigrantes económicos y a la creciente clase media proveniente de China. La continua llegada de inmigrantes chinos instruidos y de zonas urbanas, probablemente afecte la composición y complejidad de la identidad de la población china en el Canadá. [source] Stock Index Futures Prices and the Asian Financial Crisis,INTERNATIONAL REVIEW OF FINANCE, Issue 3-4 2007TAUFIQ HASSAN ABSTRACT This study reports new findings on the behavior of index futures (FKLI: code name of Kuala Lumpur Index Futures contract) prices and also records the effect of a major financial crisis on the prices. Since the inception of trading in 1995, the FKLI has been selling at a discount, which gradually increased till early 1997; further, at the onset of the financial crisis in July 1997, FKLI prices were at a high premium relative to its theoretical values. This significant mispricing of the contract declined after the initial overreaction to the crisis. Herding behavior during crisis, liquidity constraint and imposition of trading restrictions are some plausible explanations for the mispricing. This study also investigates whether trades by foreign investors had any impact when compared with prices by domestic investors. We find that foreign investors had a negative influence on permanent price changes while the domestic investors had a positive effect. [source] Financial Crisis and Social Security: The Paradox of the Republic of KoreaINTERNATIONAL SOCIAL SECURITY REVIEW, Issue 3 2000Dong-Myeon Shin This paper seeks to answer the questions why and how the social security system in the Republic of Korea has expanded in the wake of the financial crisis. The author first reviews the characteristics of the Korean welfare system before turning to the social effects of the financial crisis, then examining the resultant changes to the social security system and highlighting the driving forces behind them. The paper argues that the development of the system can be mainly attributed to the change of policy networks from a symbiotic alliance between the State and business to a tripartite corporatismand growing social demands for social welfare. [source] European Perspectives on the Global Financial Crisis: Introduction,JCMS: JOURNAL OF COMMON MARKET STUDIES, Issue 5 2009DERMOT HODSON First page of article [source] Bank Relationship and Firm Performance: Evidence From Thailand Before the Asian Financial CrisisJOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 9-10 2004Piman Limpaphayom Abstract: This study examines the relation between bank relations and market performance in Thailand, an economy in which commercial banks play a crucial role through lending relationship and, for a number of companies, equity ownership. Overall, bank relationships, both equity-based and debt-based, positively affect capital investment. However, there is a negative relation between lending relationships, both short-term and long-term, and market performance indicating that bank lending may not always be consistent with value maximization. There is also evidence of a positive marginal effect of bank monitoring through equity ownership on market performance. Further, the relation between bank equity ownership and market performance appears to be non-linear with a concave function. Ownership by corporate insiders is also negatively related to bank equity ownership. Overall, the findings highlight the detrimental effects of excessive short-term debt usage, one of the factors believed to contribute to the financial crisis in Thailand, and the marginal benefit of the equity-based relationship on firm value. [source] The Impact of the Asian Financial Crisis on Conservatism and Timeliness of Earnings: Evidence from Hong Kong, Malaysia, Singapore, and ThailandJOURNAL OF INTERNATIONAL FINANCIAL MANAGEMENT & ACCOUNTING, Issue 1 2010Thanyaluk Vichitsarawong This paper examines conservatism and timeliness of earnings in the period surrounding the 1997 Asian financial crisis in Hong Kong, Malaysia, Singapore, and Thailand. Prior research suggests that managers tended to be more aggressive in reporting good news and delayed recognition of bad news during the financial crisis (less conservative and less timely in financial reporting). After the crisis, these four countries implemented corporate governance measures to stabilize their financial systems and improve regulation and supervision (that should improve conservatism and timeliness). We examine and find that conservatism and timeliness of earnings during the crisis period are low, but improved in the post-crisis period. More importantly, conservatism and timeliness in the post-crisis period is even greater than in the pre-crisis period. We measure conservatism using Basu's model and the accumulation of non-operating accruals suggested by Givoly and Hayn. The findings from both measures are consistent with an increase in conservatism after the crisis period. Overall, the results indicate that corporate governance reforms in these four countries had a positive impact on conservatism and timeliness of earnings. [source] Insider Trading, Earnings Management and Corporate Governance: Empirical Evidence Based on Hong Kong FirmsJOURNAL OF INTERNATIONAL FINANCIAL MANAGEMENT & ACCOUNTING, Issue 3 2007Bikki Jaggi We document positive association between earnings management and insider selling after the fiscal year-end for Hong Kong firms. This positive association is especially evident before the 1997 Asian Financial Crisis. Our findings suggest that Hong Kong executives manage reported earnings to maximize their private benefits from insider selling. Additionally, we find that a higher proportion of independent directors (INED) on corporate boards moderate the positive association between insider selling and earnings management. Stricter monitoring of earnings management by INED is especially evident when no member of the family with majority ownership is present on corporate boards as a director. This suggests that the presence of family members with majority ownership on corporate boards significantly reduces INED's monitoring effectiveness. Our findings suggest that strict regulations are needed to control insider trading, and independence of corporate boards is important for monitoring of earnings management associated with insider trading. Furthermore, appointment of family members with majority shareholdings should be avoided to enhance independence and to monitor effectiveness of corporate boards. [source] The Value Relevance of Accounting Information during a Financial Crisis: Thailand and the 1997 Decline in the Value of the BahtJOURNAL OF INTERNATIONAL FINANCIAL MANAGEMENT & ACCOUNTING, Issue 2 2000Roger Graham This study addresses whether the financial turmoil surrounding the devaluation of the baht affected the value relevance of Thai accounting information. Our results suggest a decline in the value relevance of Thai book values and earnings following the devaluation. Prior to mid 1997 the Bank of Thailand pegged the value of the baht to a basket of currencies of which 80% was weighted to the US dollar. In response to pressure by currency speculators the bank abandoned its peg on July 2 1997 in favor of a managed float. The devaluation was followed by volatile exchange rates. The change in value relevance of accounting information after the devaluation may be attributable to the initial recognition of foreign exchange losses and the subsequent recognition of foreign exchange gains as exchange rates fell and then recovered. [source] Relationship Lending, Accounting Disclosure, and Credit Availability during the Asian Financial CrisisJOURNAL OF MONEY, CREDIT AND BANKING, Issue 1 2008WENYING JIANGLI relationship lending; accounting disclosure We examine whether lending relationships benefit firms by making credit more available during periods of financial stress. Our main finding is that during the Asian financial crisis of July 1997 through the end of 1998, relationship lending increased the likelihood that Korean and Thai firms would obtain credit but it had no effect on Indonesian and Philippine firms. We ask if accounting disclosure might explain the observed differences among the three countries for which audit information is available. We find that for Indonesian firms with weak lending relationships, banks replace relationship lending technology with a financial-statement lending technology. Such a result does not hold for Korean and Philippine firms. [source] REARGUARD POLITICS: HONG KONG'S MIDDLE CLASSTHE DEVELOPING ECONOMIES, Issue 2 2003TAI-LOK LUI This paper reports on the emergence of the middle class in contemporary Hong Kong First, it gives the historical background of the rise of the middle class in the 1970s. This historical background is important to our understanding of Hong Kong's middle class because it highlights its symbolic significance,the realization of the so-called Hong Kong dream,in the context of the local society. It is also relevant to our understanding of the shaping of its political outlook. The second section explores why the middle class stayed away from politics when the future of Hong Kong and democratization were the main topics in the political agenda of the 1980s and 1990s. Finally, the paper rounds up its discussion by reporting on the new grievances of the middle class amid the economic downturn after the Asian Financial Crisis. [source] Risk Sensitivity of Bank Stocks in Malaysia: Empirical Evidence Across the Asian Financial CrisisASIAN ECONOMIC JOURNAL, Issue 3 2004Chee Wooi Hooy The present study examines the sensitivity of commercial banks' stock excess returns to their volatility and financial risk factors, measured by interest rates and exchange rates, across the recent Asian financial crisis. In general, we found that there were no significant differences among Malaysian commercial banks in their risk exposure prior to and during the Asian financial crisis. The introduction of selective capital controls, a fixed exchange rate regime and a forced banking consolidation program, however, had increased the risk exposure of both large and small domestic banks. The effects of these risk factors were significantly detected in both large and small banks. [source] Financial Crisis and the Lost Decade,ASIAN ECONOMIC POLICY REVIEW, Issue 2 2007Mitsuhiro FUKAO Japanese banks incurred heavy losses in the early 1990s due to the bursting of the bubble economy of the 1980s. Japanese regulators allowed undercapitalized banks to operate under a very lenient application of capital requirement rules. At first, the regulators did not have strong institutional mechanisms and budgetary funds to take care of weakened banks. Even after obtaining strong power and money in 1988 to tackle the banking problem, the regulators would not nationalize a large number of banks because they could not manage nationalized banks themselves. The recent recovery of the Japanese economy gives the Financial Services Agency a chance to make up for the lost decade of regulatory discipline. [source] Hedge Ratio Stability and Hedging Effectiveness of Time-Varying Hedge Ratios in Volatile Index Futures Markets: Evidence from the Asian Financial Crisis,ASIA-PACIFIC JOURNAL OF FINANCIAL STUDIES, Issue 5 2010Janchung Wang C10; G13; G15 Abstract Hedge ratio stability is especially important because hedgers are likely to use the estimate of historical hedge ratios to hedge future positions of their portfolios. One main purpose of the present study is to examine hedge ratio stability during the Asian financial crisis and post-crisis, periods characterized by high price volatility, using the Nikkei 225, Hang Seng, and KOSPI 200 index futures contracts. Empirical results from the Hang Seng and the KOSPI 200 futures markets indicate that during the two periods of high price volatility, hedge ratios appeared to be unstable. Additionally, both in-sample and out-of-sample evidences indicate that, for hedging effectiveness, the time-varying hedge ratios clearly outperform the constant hedge ratios for the Hang Seng and the KOSPI 200 index futures, consistent with the findings of hedge ratio instability. The comparison results of different time-varying hedge ratios support the conclusion that the bivariate error correction generalized autoregressive conditional heteroskedastic (1,1) model enhances hedging effectiveness compared to other time-varying hedge ratios. Finally, this study examines the impact of hedge duration on hedging effectiveness and hedge ratios. The empirical results indicate that hedging effectiveness improves with increasing hedge duration. [source] Don't Judge a Superannuation Default Investment Option by Its NameAUSTRALIAN ACCOUNTING REVIEW, Issue 3 2010Gerry Gallery With the massive decline in savings arising from the Global Financial Crisis (GFC), it is timely to review superannuation fund investment and disclosure strategies in the lead-up to the crisis. Accordingly, this study examines differences among superannuation funds' default investment options in terms of naming and framing over three years from 2005 to 2007, as presented in product disclosure statements (PDSs). The findings indicate that default options are becoming more alike regardless of their name, and consequently, members may face increasing difficulties in distinguishing between balanced and growth-named default options when comparing them across superannuation funds. Comparability is also likely to be constrained by variations in the framing of default options presented in investment option menus in PDSs. These findings highlight the need for standardisation of default option definitions and disclosures to ensure descriptive accuracy, transparency and comparability. [source] Discount Rates in Disarray: Evidence on Flawed Goodwill Impairment TestingAUSTRALIAN ACCOUNTING REVIEW, Issue 4 2009Wayne Lonergan The onset of the Global Financial Crisis (GFC) will focus even more attention on the inadequacies in impairment testing by reporting entities. However, experience with the corporate sector, even before the GFC, indicated that there were widespread problems in practice with impairment testing. The article by Carlin and Finch is therefore both timely and particularly relevant to the current capital markets. [source] | ||||||||||||||||||||||||||||||||||||||||