scholarly journals Adjusting to the Financial Crisis: How Emerging Markets and Developed Economies Have Fared

2014 ◽  
Vol 31 (2) ◽  
pp. 79-105
Author(s):  
Ole Risager
Keyword(s):  
Financial Crisis ◽  
Emerging Markets ◽  
House Prices ◽  
Foreign Exchange Reserves ◽  
Sharp Decline ◽  
Developed Economies ◽  
Direct Exposure ◽  
The Usa ◽  
Asian Emerging Markets ◽  
Better Than

This article provides an overview of how the G3 (USA, the euro area and Japan) and Asian emerging markets (EM Asia) have fared following the outbreak of the financial crisis in 2008. The article shows that EM Asia weathered the crisis much better than the G3 for a number of reasons. First, EM Asia had little direct exposure to the failed financial institutions and it was therefore 'only' hit indirectly through a sharp decline in trade and through a rise in financial market turmoil. Second, leading EM Asian nations adopted government stimulus packages that in many cases were bolder than in the G3, which helped to cushion the sharp decline in exports. Third, as a result of the reforms following the Asian crisis, EM Asia had healthy government finances and significant foreign exchange reserves, which also helped. Because the financial crisis was triggered by the bursting of a housing bubble in the USA, the article also analyses the extent to which the same could happen in China, where house prices again are rising. Finally, the article discusses the new activist monetary policy in Japan that aims to bring an end to deflation.

Macroeconomic Shocks and Unconventional Monetary Policy

2019 ◽  
Keyword(s):  
Interest Rate ◽  
Financial Crisis ◽  
Emerging Markets ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Developing Economies ◽  
Spillover Effects ◽  
Macroeconomic Shocks ◽  
Monetary Policies ◽  
Developed Economies

Barely two decades after the Asian financial crisis Asia was suddenly confronted with multiple challenges originating outside the region: the 2008 global financial crisis, the European debt crisis, and, finally developed economies’ implementation of unconventional monetary policies. Especially the implementation of quantitative easing (QE), ultra-low interest rate policies, and negative interest rate policies by a number of large central banks has given rise to concerns over financial stability and international capital flows. One of the regions most profoundly affected by the crisis was Asia due to its high dependence on international trade and international financial linkages. The objective of this book is to explain how macroeconomic shocks stemming from the global financial crisis and recent unconventional monetary policies in developed economies have affected macroeconomic and financial stability in emerging markets, with a particular focus on Asia. In particular, the book covers the following thematic areas: (i) the spillover effects of macroeconomic shocks on financial markets and flows in emerging economies; (ii) the impact of recent macroeconomic shocks on real economies in emerging markets; and (iii) key challenges for the monetary, exchange rate, trade, and macroprudential policies of developing economies, especially Asian economies, and suggestions and recommendations to increase resiliency against external shocks.

scholarly journals Ownership monitoring mechanism and corporate performance: evidence from banking firms in Asian emerging markets

2008 ◽  
Vol 5 (3) ◽  
pp. 349-357
Author(s):  
Abdul Hadi Zulkafli ◽  
Fazilah Abdul Samad ◽  
Izani Ibrahim
Keyword(s):  
Corporate Governance ◽  
Hong Kong ◽  
Financial Crisis ◽  
Emerging Markets ◽  
Firm Value ◽  
Financial Firms ◽  
Monitoring Mechanism ◽  
Asian Emerging Markets ◽  
Corporate Governance Reforms ◽  
Governance Reforms

Corporate governance is regarded as a major issue during the post-financial crisis period in Asia. These countries have implemented corporate governance reforms to enhance the protection of their shareholders and stakeholders interests. Such reforms may affect the conduct of business of all corporations in the region as it allows for greater monitoring especially by the shareholders. Unlike earlier studies which focused on non-financial firms, this study analyzes the corporate governance involving ownership monitoring mechanism of listed banking firms in nine Asian emerging markets which are Malaysia, Thailand, Philippines, Indonesia, Korea, Singapore, Hong Kong, Taiwan and India. It is found that ownership monitoring mechanisms of the banking firms in Asian emerging markets are negatively related with firm value measured by Tobin’s Q

Global financial crisis, foreign portfolio investment and volatility

2020 ◽  
Vol 32 (2) ◽  
pp. 177-195
Author(s):  
Abdelkader Derbali ◽  
Ali Lamouchi
Keyword(s):  
Financial Crisis ◽  
Stock Market ◽  
Emerging Markets ◽  
Global Financial Crisis ◽  
Portfolio Investment ◽  
Content Type ◽  
Foreign Portfolio Investment ◽  
Crisis Period ◽  
Asian Emerging Markets ◽  
The Impact

Purpose The purpose of this paper is to understand and compare the extent and nature of the impact of foreign portfolio investment (FPI) on the stock market volatility, particularly in the Southeast Asian emerging markets, and compare that against the corresponding experience of Indian economy, in the context of a global financial crisis of the recent past. Design/methodology/approach The Asian emerging markets are now being perceived as becoming financially more and more vulnerable to international events because of their growing exposure to unstable foreign investment flows. The daily net FPI inflow and the daily leading stock market composite index of four countries, namely, Thailand, the Philippines, Indonesia and India, have been analyzed using autoregressive conditional heteroscedasticity (ARCH)-generalized ARCH group of models dividing the study period from 2000 to 2014 among pre-crisis, crisis and post-crisis period separately. Findings The study reveals that the net inflow of FPI has been a significant determinant of stock market returns in all countries. The impact of volatility spillover from the FPI market to the stock market in the sample countries has been found to be different under different market conditions. The past information and volatility clustering have been significantly influencing the stock market return volatilities of all these Southeast Asian countries on average. Originality/value However, there are significant country-wise differences in the relative importance and direction of the relationship of each of these effects with the volatility of the FPI and the stock markets. These effects have been different in these four different markets and they have significantly altered in strength and significance during the global financial crisis and in the post-financial crisis period.

scholarly journals The DEEWR Monthly Leading Indicator of Employment for Australia - A view from the inside

1970 ◽  
Author(s):  
Greg Connolly ◽  
Jan Lee
Keyword(s):  
Financial Crisis ◽  
Lead Time ◽  
Global Financial Crisis ◽  
Yield Curve ◽  
House Prices ◽  
Leading Indicator ◽  
Interest Rate Spread ◽  
The Usa ◽  
The Baltic ◽  
The Global Financial Crisis

The new DEEWR Monthly Leading Indicator of Employment for Australia has been in operation since July 2007. While it is too early to conduct a proper evaluation on its performance since it has only been released for around a year and a half, it is an opportune time to make some comments on how it has been performing. There has only been one turning point in the Indicator and in cyclical employment during this time - a peak in the Indicator in January 2008, followed by a peak in cyclical employment in April 2008. While the peak in cyclical employment was correctly predicted by the Indicator, the lead time was only three months, which is insufficient time to be really useful for policy or program responses. The three components of the Indicator with the highest weightings also had a lead time of around three months with cyclical employment. It is not feasible to conduct an up-to-date comparison with the previous version o f the Department 's Leading Indicator of Employment. This is because one of the components of the former Indicator was the ABS Job Vacancies series, which is no longer released by the ABS. The performance of the Indicator in the context of the Global Financial Crisis is discussed in this paper. There are many series that are newly being monitored by economic analysts in Australia to get a better understanding of the Global Financial Crisis and how it is likely to affect Australia. Examples of such series are US housing starts and established house prices, sub-prime mortgage delinquency rates in the USA, the US Treasury-Eurodollar interest rate spread and yield curve and the Baltic Exchange Dry Index o f shipping freight rates. While consideration could be given to including offshore indicators in a future version of the Indicator, it would be problematic to attempt to include most of them at this stage.

Attenuating double jeopardy of negative country of origin effects and latecomer brand

2014 ◽  
Vol 26 (1) ◽  
pp. 54-77 ◽  
Author(s):  
Hamin Hamin ◽  
Chris Baumann ◽  
Rosalie L. Tung
Keyword(s):  
Emerging Markets ◽  
Consumer Preferences ◽  
Country Of Origin ◽  
Content Type ◽  
Developed Markets ◽  
The Usa ◽  
Manufacturing Assembly ◽  
Asian Emerging Markets ◽  
The Uk ◽  
Origin Effect

Purpose – The purpose of this paper is to examine the role of ethnocentrism in attenuating the negative country of origin effect and latecomer brands. The literature has established the importance of the “country of origin” effect, and this study compares consumers in the Asian emerging markets to developed consumers' response to cars from China, India and Russia. Design/methodology/approach – Data on consumers' willingness to purchase cars from emerging markets such as China, India and Russia were collected from 3,201 respondents in those three emerging markets and in the three most important Western car markets, the USA, the UK and Germany. The study employed a choice-based conjoint analysis. Findings – The results of this study confirmed the hypothesised ethnocentrism in the emerging markets with a strong preference for their own latecomer brands (Great Wall, Tata and AvtoVAZ, respectively). Developed markets in contrast are more sceptical of the Chinese, Indian and Russian car brands, but there is nonetheless substantial potential, especially with consumers who have previously bought latecomer brands from Asia. Utility values per brand, price, brand-partnership, product features, warranties and also place of manufacturing/assembly have been calculated in the study. Originality/value – This paper should prove valuable to academic researchers in establishing strong consumer preferences in emerging markets for their own products, and in establishing the potential of latecomer brands in developed markets.

scholarly journals Determinants of Repayment among Male and Female Microcredit Clients in the USA. An Approach Based on Managers’ Perceptions

2020 ◽  
Vol 12 (5) ◽  
pp. 1701 ◽  
Author(s):  
Emilio M. Santandreu ◽  
Joaquín López Pascual ◽  
Salvador Cruz Rambaud
Keyword(s):  
Emerging Markets ◽  
Marital Status ◽  
Developed Countries ◽  
Growth Potential ◽  
Microfinance Institutions ◽  
Male And Female ◽  
Academic Level ◽  
External Pressures ◽  
The Usa ◽  
Better Than

Research on microfinance institutions (MFIs) has normally been focused on developing and emerging markets. However, an analysis of developed countries is also important for foreign MFIs wishing to take advantage of the growth potential of those markets. Therefore, the aim of this article is to determine whether MFIs working in the USA’s market should change or adapt their microcredit policies with respect to women. In effect, there are no studies in the USA supporting the argument that women are a better risk of microcredit than men, or that there are differences in microcredit repayment behavior between women and men. Additionally, it was investigated if the payment behavior of women and men is related to variables such as their age, ethnicity, academic level, marital status, or the characteristics of the microcredits, like purposes, amounts, and payment terms. In the USA, there are not—as in other countries—strong incentives, motivations, or external pressures, other than those that men also have, which influence women to pay their microloans better than men. Then, domestic and international MFIs attracted to enter the USA’s market should review their microcredit policies in relation to women. More research is needed about the microfinance market in the USA.

Russian Banking Sector under World Financial Market Uncertainty: Problems and Prospects

2008 ◽  
pp. 4-19 ◽  
Author(s):  
A. Ulyukaev ◽  
E. Danilova
Keyword(s):  
Emerging Markets ◽  
Financial Market ◽  
Banking Sector ◽  
Financial System ◽  
Local Market ◽  
Market Uncertainty ◽  
Balanced Growth ◽  
Banking Sector Development ◽  
The World ◽  
The Usa

The authors point out that the local market crisis - on the USA substandard loan market - has led to the uncertainty of the world financial market. It has caused the growing demand for liquidity in the framework of the world financial system. The Russian banking sector seems to be more stable under negative changes than banking systems of other emerging markets. At the same time one can assume that the crisis will become the factor of qualitative shift in the character of the Russian banking sector development - the shift from impetuous to more balanced growth.

GLOBAL FINANCIAL CRISIS: THE BUBBLE EFFECT IN INDONESIA

2018 ◽  
pp. 27-33
Author(s):  
Mohammad Benny Alexandri ◽  
Raeny Dwisanti
Keyword(s):  
Financial Crisis ◽  
Stock Price ◽  
Price Index ◽  
Global Financial Crisis ◽  
Price Ratio ◽  
Sharp Decline ◽  
Book Value ◽  
The Us ◽  
Investment Opportunities ◽  
Us Financial Crisis

US and Indonesia stock markets are entering record heights without being offset by economic growthand profitability growth of their traded companies. There are several indicators for the stock marketbubble: (1) Price Ratio (Ear Ratio); (2) Price Ratio / Book (PB Ratio), the latter comparing thenominal price of one share at a market with the book value (the value of company's assets). Thecurrent PB ratio of the composite stock price index being 3.3 means that for each shares the assetvalue of which is 1 IDR, the stock would be worth 3.3 IDR. This is one of the most expensive price in the world today. Based on the above, for Indonesian stock market sharp decline is just a matter of time and waiting. This decline will be much sharper if triggered by the US financial crisis. We can also also see a bubble emerging from increasingly irrational investment attitudes. Currently, in addition to high prices for stocks and bonds, investors have started looking at investment opportunities in digital currencies. This research tries to know the potential of financial crisis and itseffect for the financial market in Indonesia. 

scholarly journals CSR reporting by Chinese and Western MNEs: patterns combining formal homogenization and substantive differences

2021 ◽  
Vol 6 (1) ◽  
Author(s):  
Irina Ervits
Keyword(s):  
Emerging Markets ◽  
Multinational Enterprises ◽  
Qualitative Content Analysis ◽  
Developed Economies ◽  
Csr Reporting ◽  
Business Operations ◽  
Advanced Economies ◽  
Chinese Mnes ◽  
Complex Picture ◽  
Corporate Social

AbstractIn light of the growing economic might and intensification of global activities of Chinese multinational enterprises (MNE), this paper looks into the nature of their corporate social responsibility (CSR) reporting. CSR communications of the largest Chinese companies and their counterparts from advanced economies have been compared based on quantitative and qualitative content analysis of CSR reports. A mixed method approach has been rarely utilized in the analysis of CSR reporting. To analyze CSR reports the paper uses a two-dimensional conceptual framework based on Wood (Acad Manag Rev 16:691–717, 1991); Jamali and Mirshak (J Bus Ethics 72:243–262, 2007) and Lockett, Moon and Visser (J Manag Stud 43:115–136, 2006); Moon and Shen (J Bus Ethics 94:613–629, 2010). The findings indicate that quantitatively Chinese MNEs display patterns of CSR reporting comparable to major MNEs in developed economies. This paper argues that just like MNEs from developed economies Chinese MNEs use a global CSR reporting template as a convenient tool to align and harmonize various isomorphic pressures. However, qualitatively substantive discrepancies in content have been also identified due to national or other contextual characteristics. The analysis reveals a complex picture of national and international isomorphic forces at play. The paper addresses the lack of consensus concerning convergence/divergence of CSR reporting across the globe and, more specifically, between developed economies and emerging markets. In this respect this paper responds to the general call for research looking into various aspects of business operations, including CSR reporting, of MNEs from emerging markets.

scholarly journals Liquidity Synchronization, Its Determinants and Outcomes under Economic Growth Volatility: Evidence from Emerging Asian Economies

Risks ◽  
2021 ◽  
Vol 9 (2) ◽  
pp. 43
Author(s):  
Syeda Hina Zaidi ◽  
Ramona Rupeika-Apoga
Keyword(s):  
Economic Growth ◽  
Emerging Markets ◽  
Interest Rates ◽  
Emerging Market ◽  
The Philippines ◽  
Country Level ◽  
Market Index ◽  
High Inflation ◽  
Asian Emerging Markets ◽  
Growth Volatility

This study investigates the country-level determinants of liquidity synchronization and degrees of liquidity synchronization during economic growth volatility. As a non-diversifiable risk factor, liquidity co-movement shock spreads market-wide and thus disrupts the overall functioning of the financial market. Firms in Asian markets operate in legal and regulatory environments distinct from those of firms analyzed in the previous literature. Comprehensive analyses of liquidity synchronicity in emerging markets are limited. A major knowledge gap pertaining to Asian emerging markets serves as the primary motivation for this study. Seven Asian emerging economies are selected from the MSCI emerging market index: Bangladesh, China, India, Indonesia, Malaysia, Pakistan and the Philippines for analysis from 2010 to 2019. The empirical findings show high levels of liquidity synchronicity in weaker economic and financial environments with low GDP growth, high inflation and interest rates and underdeveloped financial systems taking the form of low levels of private credit. Liquidity synchronicity is also affected by poor investor protection, political instability, weak rule of law and government ineffectiveness. Moreover, levels of liquidity synchronicity are higher in a period of economic growth volatility.

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