Credit Demand and Supply Shocks in Italy During the Great Recession

2018 ◽  
Author(s):  
Andrea Cipollini ◽  
Fabio Parla
Keyword(s):  
Great Recession ◽  
Demand And Supply ◽  
The Great Recession ◽  
Supply Shocks ◽  
Credit Demand

An Analysis of Big 4 Pricing and Firm Size: The Differential Impact of Demand and Supply Shocks on Large and Small Clients

2017 ◽  
Vol 34 (2) ◽  
pp. 204-230 ◽  
Author(s):  
Fatima Alali ◽  
Randal Elder ◽  
Jian Zhou
Keyword(s):  
Small Firm ◽  
Great Recession ◽  
Small Firms ◽  
Unique Contribution ◽  
Demand And Supply ◽  
The Great Recession ◽  
Audit Market ◽  
Sarbanes Oxley ◽  
Big 4 ◽  
Recession Period

We investigate Big 4 pricing over the period of 2000 to 2010. We classify the data into five periods: 2000-2001 as the pre-Sarbanes–Oxley Act (SOX) period, 2002-2003 as the SOX period, 2004-2006 as the Auditing Standard 2 (AS2) period, 2007 as the AS5 period, and 2008-2010 as the Great Recession period. The shocks to the audit market associated with these changes in auditing regulations and the economic environment have differential impacts on large clients and small clients. The percentage of small clients using Big 4 auditors dropped significantly over these shocks, whereas the percentage of large clients using Big 4 auditors experienced a large drop only from the SOX period to the AS2 period. We find that Big 4 pricing increased significantly from the pre-SOX period to the SOX period and continued to increase significantly in the AS2 period. Big 4 pricing experienced a significant decline in the AS5 period and declined insignificantly in the Great Recession period. Big 4 small firm pricing decreased significantly in the AS2 period compared with the SOX period and in the Great Recession period compared with the AS5 period. We find that the Big 4 pricing for small clients is contingent on the nature of competition. The Big 4 charged small firms higher prices in the SOX period, AS5 period, and Great Recession period when competition was lower. Our paper provides a unique contribution as a comprehensive analysis of Big 4 pricing and Big 4 small firm pricing.

scholarly journals Real vs. nominal cycles: a multistate Markov-switching bi-factor approach

2014 ◽  
Vol 18 (5) ◽  
Author(s):  
Danilo Leiva-Leon
Keyword(s):  
Business Cycle ◽  
Great Recession ◽  
Probabilistic Model ◽  
Housing Demand ◽  
Real Activity ◽  
The Great Recession ◽  
Supply Shocks ◽  
The Business Cycle ◽  
The Impact ◽  
Simultaneous Inferences

AbstractThis paper proposes a probabilistic model based on comovements and nonlinearities useful to assess the type of shock affecting each phase of the business cycle. By providing simultaneous inferences on the phases of real activity and inflation cycles, contractionary episodes are dated and categorized into demand, supply and mix recessions. The impact of shocks originated in the housing market over the business cycle is also assessed, finding that recessions are usually accompanied by housing deflationary pressures, while expansions are mainly influenced by housing demand shocks, with the only exception occurred during the period surrounding the “Great Recession,” affected by expansionary housing supply shocks.

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