scholarly journals Governance and Degrowth. Lessons from the 2008 Financial Crisis in Latvia and Iceland

2019 ◽  
Vol 11 (6) ◽  
pp. 1734 ◽  
Author(s):  
Åsa Nyblom ◽  
Karolina Isaksson ◽  
Mark Sanctuary ◽  
Aurore Fransolet ◽  
Peter Stigson
Keyword(s):  
Political Culture ◽  
Strong Influence ◽  
Management Strategies ◽  
Social Consequences ◽  
2008 Financial Crisis ◽  
Empirical Learning ◽  
Policy Measures ◽  
The 2008 Financial Crisis ◽  
Economic Transitions

This paper investigates the role of governance dimensions in socio-economic transitions in line with degrowth, i.e., an equitable downscaling of the economy. Our focus is on experiences from the 2008 economic crisis in Latvia and Iceland. Although these cases are not in themselves examples of degrowth, we see them as important sources of empirical learning from major socio-economical transitions; furthermore, we see crises as possible starting points for future degrowth transitions. This paper applies a governance framework to explore the vast differences in management strategies and crisis outcomes in Latvia and Iceland. In Iceland, public resistance led to a shift in policy measures such that economic inequality and the negative social consequences of the crisis decreased. In Latvia, public resistance existed but had no strong influence. The outcome in Latvia included none of the elements of equitable downscaling found in the case of Iceland. These two cases show how differences in formal institutional arrangements, political culture and societal trust affect different governance dimensions during a time of crisis. The analysis illustrates the importance of institutional and governance dimensions in major socio-economical transitions, and demonstrates how they influence the kind of transition that can be realized.

The role of customers and employees in the buffer effect of corporate social responsibility in times of crisis

2020 ◽  
Vol 46 (7) ◽  
pp. 955-975 ◽  
Author(s):  
Dorra Ellouze
Keyword(s):  
Financial Crisis ◽  
Negative Impact ◽  
Employee Productivity ◽  
Negative Events ◽  
Buffer Effect ◽  
2008 Financial Crisis ◽  
Content Type ◽  
Cooperative Relationships ◽  
The 2008 Financial Crisis

PurposeThe purpose of the paper is to investigate the role of customers and employees in the buffer effect of CSR around the 2008 financial crisis in the European context.Design/methodology/approachUsing a sample of 323 European firms listed in STOXX Europe 600 Index, different models are estimated to test whether the effect of CSR ratings on firms' relationships with their customers and employees could be different during the 2008 financial crisis relative to the pre-crisis and post-crisis periods.FindingsThe paper shows that CSR rating has a significantly negative impact on firms' accounts receivable and a significantly positive effect on employee productivity during the crisis period (from 2007 to 2009). However, there is no significant effect of CSR rating during the non-crisis periods. These results suggest that during negative events, customers are willing to continue supporting high-CSR firms by paying their invoices faster. Furthermore, these firms benefit from higher productivity of their employees who are willing to work harder in periods of uncertainty.Research limitations/implicationsFirms should invest in CSR practices to maintain strong and cooperative relationships with their customers and employees. Also, investors should choose firms engaging in more social capital. Moreover, policymakers should encourage implementing CSR practices which act as an insurance-like protection in times of negative events.Originality/valueThis paper adds to the previous studies by investigating whether the cooperative role of customers and employees can explain the buffer role of CSR around the crisis. Furthermore, it considers companies located in several European countries for a long period (from 2004 to 2012) to compare periods of crisis and non-crisis.

Fortune Favors the Bold

2020 ◽  
pp. 48-84
Author(s):  
Dominic D. P. Johnson
Keyword(s):  
World War I ◽  
Illusion Of Control ◽  
World War ◽  
2008 Financial Crisis ◽  
Contemporary World ◽  
Strategic Role ◽  
The 2008 Financial Crisis ◽  
Considerable Discussion ◽  
The U.S

This chapter examines the strategic role of overconfidence. It describes mentally healthy people that exhibit an overestimation of their capabilities, an illusion of control over events, and a perceived invulnerability to risk. It also describes overconfidence that has long been noted as a cause of disasters and wars, citing Geoffrey Blainey, Barbara Tuchman, and Stephen Van Evera who all blamed false optimism as one of the key causes of World War I. The chapter reviews the considerable discussion of the role of overconfidence in the contemporary world, such as the U.S. planning for the 2003 Iraq War and the 2008 financial crisis. It elaborates how overconfidence can offer adaptive advantages by increasing ambition, resolve, and perseverance.

scholarly journals Hungarian Economic Policy Measures After the 2008 Financial Crisis

2017 ◽  
Vol 5 (6) ◽  
Author(s):  
Anita Potocskáné Kőrösi ◽  
Tünde Bokorné Kitanics ◽  
Péter Bertalan
Keyword(s):  
Economic Policy ◽  
Financial Crisis ◽  
2008 Financial Crisis ◽  
Policy Measures ◽  
The 2008 Financial Crisis

State Aid and National Development Banks in the EU

2021 ◽  
pp. 64-89
Author(s):  
Peter Volberding
Keyword(s):  
National Development ◽  
State Aid ◽  
Green Technology ◽  
Domestic Economy ◽  
2008 Financial Crisis ◽  
The 2008 Financial Crisis ◽  
Near Extinction ◽  
The Relationship ◽  
The Eu

This chapter argues that State Aid has served as an important regulatory tool to guide when, where, and how NDBs are permitted to intervene in the domestic economy. Through a detailed analysis of the evolution of the relationship between State Aid and NDBs from the 1950s to the present, it demonstrates that in the first few decades State Aid greatly limited the activities of NDBs, driving them to near extinction by the 1980s. However, beginning in the late 1990s, and accelerating after the 2008 financial crisis, the EC has loosened State Aid to increase investment in sectors like SME, R&D, and green technology. For their part, NDBs began to assert their positions, not only carving out a role of implementing national industrial policy, but also serving as important financing partners for the EU in recent years.

A Study on Multi-Class Fund Flows and Consumer Protection

2017 ◽  
Vol 25 (1) ◽  
pp. 41-74
Author(s):  
Tai-Yong Roh ◽  
Sun-Joong Yoon ◽  
Sung Won Seo
Keyword(s):  
Financial Crisis ◽  
Mutual Fund ◽  
Fund Flows ◽  
Empirical Observation ◽  
2008 Financial Crisis ◽  
Fund Industry ◽  
Mutual Fund Industry ◽  
The 2008 Financial Crisis

We examine whether the suitability principles hold for the mutual fund industry in Korea, by analyzing the dynamics and the characteristics of the multi-class fund flows. For 12-years from 2002 to 2013, the volatility of fund flows associated with A-class fund, which is more appropriate for long-term investments, is larger than that associated with C-class fund. Therefore, it can be interpreted that the suitability principles do not hold. To examine the empirical observation, we mainly focus on the role of the dollar cost averaging (DCA) style funds. We show that if we adjust for the effect of DCA funds, the suitability principles does not hold only before the 2008 financial crisis. Thus, we argue that individuals' irrational decision making is caused by heavy investments on A-class fund through DCA style types before the financial crisis. This leads to the observed violation of the suitability principles before the crisis. Our findings also suggest that after the financial crisis, the mutual fund industry in Korea becomes mature.

Regulating Global FMIs

2016 ◽  
pp. 41-70
Author(s):  
Aaron Unterman
Keyword(s):  
Financial Market ◽  
Multiple Sources ◽  
Efficient Manner ◽  
2008 Financial Crisis ◽  
Regulatory Response ◽  
Regulatory Perspective ◽  
Central Counterparties ◽  
International Laws ◽  
The 2008 Financial Crisis

A key regulatory response to the 2008 financial crisis has been to greatly enhance the role of financial market infrastructures (FMIs) including central counterparties and trade repositories in the global OTC derivatives market. This chapter analyses the implications, from a regulatory perspective, of reliance on internationally active FMIs that can be systemically important to multiple jurisdictions by examining the multiple sources of domestic and international laws applicable to such entities. This chapter argues that, although achievements have been made, greater international coordination is necessary to ensure that global FMIs operate in a stable and efficient manner.

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