The Effects of Accounting Standardization in the European Union on the Capital Market: First Evidence from the Bank Industry

2006 ◽  
Author(s):  
Vera Palea
Keyword(s):  
European Union ◽  
Capital Market ◽  
The European Union ◽  
The Capital Market

scholarly journals Planned Solvency III Regulation: Should It Be Adopted Outside the European Union?

2019 ◽  
Vol 13 (1) ◽  
Author(s):  
Peter Zweifel
Keyword(s):  
European Union ◽  
Capital Market ◽  
Solvency Ii ◽  
Business Strategies ◽  
Basel Iii ◽  
The European Union ◽  
Leverage Ratio ◽  
Solvency Regulation ◽  
Regulatory Failure ◽  
The Capital Market

Abstract Several countries outside the European Union consider adopting its solvency regulation for their insurance industries. However, Solvency I and (to a lesser extent) Solvency II were found to run the risk of inducing more rather than less risk-taking by insurers (Zweifel, Peter. 2014. “Solvency Regulation of Insurers: A Regulatory Failure?” Journal of Insurance Issues 37 (2): 135–157.). Companies are led to neglect parameters that link them to developments in the capital market when determining their endogenous perceived efficiency frontier (EPEF), causing it to become steeper. Given homothetic risk preferences, senior management is predicted to opt for increased rather than reduced volatility. By way of contrast, if modeled after Basel III for banks, planned Solvency III will ask insurers to take developments in the capital market into account in their formulation of business strategies designed to ensure solvency (Principle 5 of Basel III). In addition, the stipulated decrease in their leverage ratio is shown to reduce the slope of the EPEF for insurers with little solvency capital. Contrary to its predecessors, Solvency III is therefore predicted to make insurers take on less risk, which argues for its for adoption beyond the European Union if properly implemented.

scholarly journals Legal support of Ukraine in the context of attracting capital by banks in international m

2021 ◽  
Vol 1 (2) ◽  
Author(s):  
Olena Yu. Volkovych ◽  
Keyword(s):  
European Union ◽  
Economic Crisis ◽  
Capital Market ◽  
Banking Sector ◽  
Public Information ◽  
Commercial Banking ◽  
The State ◽  
The European Union ◽  
Association Agreement ◽  
The Capital Market

The article provides a theoretical and legal analysis of the legal support of Ukraine in the context of raising capital by banks in international markets. The author determined that the economic crisis in the country is protracted, the capital market in Ukraine remains largely underdeveloped. The state has taken many steps to overcome the economic crisis, identified priority measures, strategic steps to build a sustainable economy, in particular, many efforts have been made to find free funds to attract investment, but this, as practice shows, was not enough. An important step in building a free and competitive state was the adoption of the Association Agreement between Ukraine and the European Community. This document is the largest international legal document in the history of Ukraine and the largest international agreement with a third country ever concluded by the European Union. In accordance with the Program of Integration of Ukraine into the European Union (hereinafter - the Program), approved by the Decree of the President of Ukraine � 1072/2000 of 14.09.2000. Synchronization of internal market transformations of changes in the processes of EU enlargement. First of all, it concerns: reform of executive and judicial bodies and cooperation of the Ministry of Justice of Ukraine with courts; administrative and territorial reform; formation of the foundations of regional development policy (including legislation on the distribution of competencies, budgets, taxes); completion of privatization (primarily enterprises of strategic importance for the economy and security of the state and banks); reforming the banking sector as a whole. Thus, in particular, a developed capital market is usually seen as a competitor in the commercial banking sector, as they compete for retention and investment opportunities. However, in today�s financial system, there are complementary relationships between the capital market and banks, as they choose different segments of the financial markets and focus on different types of customers. In the process of writing the article came to the following conclusions. The right direction in the reform of the economic sector is to determine the measures of state investment support should be preceded by a detailed analysis of the effect of the benefits and preferences previously granted to economic entities. Establish the legislative level the provision that the minimum amount of public investment should be equal to the amount of all new debt, i.e., the amount of borrowings during the year may not exceed the amount of budget expenditures to finance investments. Introduce the practice of developing and implementing investment incentive packages. Introduce a practice in which the decision on new borrowings is preceded by public information on which projects have already been used to finance the funds and for which purposes (projects) new borrowings are envisaged. Establish strict control over debt activities.

scholarly journals The New Prospectus Regulation and the information effi ciency of capital markets in the European Union

2018 ◽  
Vol 25 ◽  
pp. 73-91
Author(s):  
Łukasz Chyla
Keyword(s):  
European Union ◽  
Capital Markets ◽  
Capital Market ◽  
Listed Companies ◽  
Alternative Methods ◽  
The European Union ◽  
Barriers To Entry ◽  
Current Regulation ◽  
Retail Investors ◽  
The Capital Market

The new Prospectus Regulation and the information efficiency of capital markets in the European UnionThe economic analysis of law suggests that one of the main obstacles to the strengthening of European Capital Markets are, on the one hand, the entry barriers for capital companies seeking financial support, and on the other, lack of proper information protection for investors, which discourages them from placing money on the financial markets. The current regulation is flawed for at least several reasons. First, there are many differentiating regimes within European Union. Second, the current regulation imposes too many requirements and information obligations on listed companies, which significantly increases transaction costs and makes searching for funding on the capital markets unprofitable for many players. As a result, some of them target other alternative methods of obtaining funds from investors such as FinTechs, Blockchain, Tokens, which in turn weakens the investors protection. As a consequence, the capital outflow from capital markets makes them even less competitive. Third, most of retail investors are practically unable to digest the significant amount of detailed information presented by publicly-listed companies due to the current prospectus obligations, which, in consequence, discourages them from further investments on the capital market. The main goal of the paper is to evaluate numerous issues related to current regulation on European capital markets in terms of information requirements that create “barriers to entry” for public companies and, at the same time, fail to establish a proper information order and transparency obligations — therefore discouraging retail investors from investing in the capital markets. Another goal of the paper is to present the perspectives of the upcoming Prospectus Regulation within European Capital Markets which aims to harmonize the transparency obligations and thus, to unlock effective and cheap funding in the capital market, and as a consequencestimulate the Europe’s economic growth. Nowa Regulacja Prospektowa a efektywność informacyjna na rynku kapitałowym w Unii EuropejskiejEkonomiczna analiza prawa sugeruje, że jedną z głównych przeszkód wzmocnienia europejskich rynków kapitałowych są z jednej strony bariery wejścia dla spółek kapitałowych ubiegających się o finansowanie, z drugiej zaś brak odpowiedniej ochrony informacyjnej inwestorów, który zniechęca ich do lokowania pieniędzy na rynkach finansowych. Obecne regulacje prospektowe są wadliwe z co najmniej kilku powodów. Po pierwsze, w Unii Europejskiej istnieje wiele systemów różniących się od siebie w fundamentalnych kwestiach. Po drugie, obecne rozporządzenie nakłada zbyt wiele wymogów i obowiązków informacyjnych na spółki notowane na giełdzie, co znacznie zwiększa koszty transakcyjne i sprawia, że poszukiwanie funduszy na rynkach kapitałowych jest nieopłacalne dla wielu mniejszych graczy. W rezultacie niektóre z nich celują w inne, alternatywne metody pozyskiwania funduszy od inwestorów takich jak FinTechs, Blockchain, Tokens, co z kolei osłabia ogólną ochronę inwestorów na rynku kapitałowym. W konsekwencji odpływ kapitału z rynków kapitałowych powoduje, że są one jeszcze mniej konkurencyjne. Po trzecie, większość inwestorów detalicznych praktycznie nie jest w stanie przeanalizować znacznej ilości szczegółowych informacji przedstawianych przez spółki notowane na giełdzie ze względu na obowiązki prospektowe, co w konsekwencji zniechęca ich do dalszych inwestycji na rynku kapitałowym. Głównym celem artykułu jest ocena licznych zagadnień związanych z bieżącymi regulacjami dotyczącymi europejskich rynków kapitałowych pod kątem wymagań informacyjnych, które tworzą „bariery wejścia” dla spółek publicznych, a jednocześnie nie ustanawiają odpowiedniego porządku informacyjnego i przejrzystości zobowiązania — zniechęcając tym samym inwestorów detalicznych do inwestowania na rynkach kapitałowych. Innym celem artykułu jest przedstawienie perspektyw nadchodzącego rozporządzenia w sprawie prospektu emisyjnego na europejskich rynkach kapitałowych, który ma zharmonizować obowiązki w zakresie przejrzystości, a tym samym uwolnić od efektywnego i taniego finansowania na rynku kapitałowym, a w konsekwencji stymulować wzrost europejskiej gospodarki.

scholarly journals Benchmarking study on the venture capital market in the Czech Republic, Hungary and the Netherlands

2016 ◽  
Vol 13 (3) ◽  
pp. 191-202 ◽  
Author(s):  
Ing. Jaroslava Rajchlová ◽  
Ing. Veronika Svatoaová
Keyword(s):  
European Union ◽  
Cluster Analysis ◽  
Czech Republic ◽  
The Netherlands ◽  
Venture Capital ◽  
Capital Market ◽  
The European Union ◽  
The Czech Republic ◽  
Eu Countries ◽  
Capital Financing

The main aim of paper is seen at two levels: the first level to assess the situation on the venture capital market in the Czech Republic based on the results of a comparative study of selected countries of European Union is the area of venture capital financing. The second level is, then, to propose measures, whose implications could increase the effectiveness of venture capital to the business sector in the Czech Republic. The main purpose of the paper is to identify internally homogeneous groups of the EU states regarding the situation on the venture capital market in the European Union Member States. The aim of this article is supported by relevant statistical data for the period 2008-2013 to assess the legislative framework of venture capital market in the Czech Republic and other selected European countries. Based on the results of cluster analysis, EU countries were identified, Hungary and the Netherlands, in which legislative conditions with venture capital market were subsequently analyzed and the results were compared with the situation in the Czech Republic. The Netherlands as a representative of the countries with developed market risk capital, Hungary as a representative of CEE countries. The problem of undeveloped VC market in the Czech Republic is not in demand for venture capital, but in its supply. Pension funds and insurance companies cannot invest more than 5% in risky assets. In the Czech Republic, there are no tax incentives to attract investors and even government programs that could complement the missing investors and support the creation of venture capital funds. This low level of venture capital usage for the development of enterprises could also be seen in misunderstanding and ignorance of this form of financing, the inability of management to prepare a business plan and to attract a potential investor, fears of administrative burdens arising from an investor and finally questionable return on investment when, for example, public offering of shares, which achieves a high appreciation, is in the Czech Republic underused. Keywords: venture capital, benchmarking, cluster analysis, Ward’s method, CEE countries, EU countries, Czech Republic, Hungary, Netherlands. JEL Classification: G32, M21

Ein Schuldenerlass als Ende mit Schrecken?

2020 ◽  
Vol 69 (3) ◽  
pp. 277-307
Author(s):  
Arne Hansen ◽  
Dirk Meyer
Keyword(s):  
European Union ◽  
Capital Market ◽  
Policy Instrument ◽  
Central Banks ◽  
External Support ◽  
The European Union ◽  
European System ◽  
Equity Position ◽  
Legal Integration ◽  
The Eu

Abstract The rising debt-to-GDP ratios of the eurozone member states result not least from the coronavirus crisis. Without external support, especially with regard to Italy, but also for other Mediterranean states, access to the capital market could be seriously threatened in the medium run. The recovery fund ‘Next Generation EU’ likely directs the fundamental structures of the European Union (EU) towards a fiscal union with considerable transfer elements, while the Pandemic Emergency Purchase Programme (PEPP), which is declared as a monetary policy instrument, is even discussed as a violation of the prohibition of monetary financing. As an alternative, this contribution analyses a debt relief by the European System of Central Banks (ESCB), implemented via an EU debt agency. This construction would avoid a negative equity position of the central banks and also enable a legal integration into the EU system. The question remains: What would be the consequences of such a non-recurring step?

Comparative Company Law

2006 ◽  
pp. 1160-1192 ◽  
Author(s):  
Klaus J. Hopt
Keyword(s):  
European Union ◽  
Capital Market ◽  
Comparative Law ◽  
Company Law ◽  
Future Research ◽  
Private Law ◽  
The European Union ◽  
Very Old

Comparative company law is at once very old and very modern. It is very old because ever since companies and company laws first existed, trade has not stopped at the frontiers of countries and states. The persons concerned, practitioners as well as rule-makers, had to look beyond their own city, country, rules, and laws. But comparative company law is also very modern. Most comparative work has focused on the main areas of private law, such as contract and torts, rather than company law. This article focuses on law and related rulemaking. It tries at least to touch upon the company law of five legal families in an eclectic way. It examines traditional and modern contracts in company law and comparative law, the harmonization of company law in the European Union, capital market law, and perspectives for future research.

Building a Capital Market – the Final Report of the High Level Forum on the EU Capital Market Union

2020 ◽  
Vol 17 (6) ◽  
pp. 601-618
Author(s):  
Katja Langenbucher
Keyword(s):  
European Union ◽  
Capital Market ◽  
Final Report ◽  
The European Union ◽  
Cross Border ◽  
High Level ◽  
Core Project ◽  
Market Infrastructure ◽  
The Eu

Abstract: Building a capital market union is a core project of the European Union, facing not only brexit but also the need to recover from COVID-19. The recently published High Level Forum Report adresses these obstacles and suggests 17 precise, mutually reinforcing and interdependent recommendations for this European endeavour. The paper summarizes the four substantive areas of the High Level Forum’s recommendations and outlines the specific measures to create a harmonized capital market union: (i) promoting financing of business, (ii) creating a uniform market infrastructure, (iii) fostering individual investor’s engagement and (iv) tackling obstacles to cross-border investment.

Integration of capital markets in the European Union from the perspective of Poland

2017 ◽  
Vol 44 (3) ◽  
pp. 85-93
Author(s):  
Ewa Jagodzińska-Komar
Keyword(s):  
European Union ◽  
Capital Markets ◽  
Capital Market ◽  
The European Union ◽  
Member States ◽  
Eu Countries ◽  
The World ◽  
The Eu

The aim of the single capital market of the EU is the access of all Member States to the funds, according to the same principles, and the diversification of sources of financing for enterprises, paying special attention to the SME sector. The author highlights that the improvement of attractiveness of the capital markets in the EU countries would result in a greater number of investments from the world. This, in turn, would increase the ability of the European economy to respond to shocks and to reduce debt.

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