scholarly journals The Relationship Between Accounting Practices and Effects of Financial Crisis in Turkey: A Case Study on an Oil Company

2016 ◽  
Vol 6 (1) ◽  
pp. 47-58 ◽  
Author(s):  
İsmail Erkan Çelik
Keyword(s):  
Financial Crisis ◽  
Financial Crises ◽  
Negative Effects ◽  
Mortgage Loans ◽  
Financial Reports ◽  
Subprime Mortgage ◽  
Before And After ◽  
Accounting Rules ◽  
The 2008 Financial Crisis ◽  
Audit Reports

Many reasons lie at the base of all financial crises from the past to the present. If we take into consideration the 2008 subprime mortgage crisis, the only reason cannot be mortgage loans. But the mortgage issue continued to advance and created several other problems. Definitely, the source of mortgage loans problem also had many roots. One of the reasons was the lack of correct use of accounting principles and auditing. This is a strong proof and indicator that, there are many accounting based reasons behind the occurrence of the financial crises. Many examples can be given showing moving away from the basic principles of accounting rules and the general accounting concepts. Moreover, institutions being not fully independent, running creative accounting practices, having problems with fair valuation and transparency issues, presenting unreal financial reports, and sharing misleading audit reports are all related to financial crises.Furthermore, specific businesses and people abuse accounting rules, standards and related legislation for the sake of their own interests. Accounting and finance history has shown us that, even audit institutions, credit institutions and rating agencies are getting unfair advantages and generating unethical cash by making intentional accounting and finance errors, which is actually categorized as fraud.The aim of this study is to analyze financial crises and to determine if accounting practices have any relationship with financial crises. The research investigated an oil company’s financial and operational indicators before and after the 2008 financial crises with related tables and figures. Also, an interview was run with the company’s accounting officer. Based on the statements of firm’s accounting officer, correct accounting practices defended firm from several negative effects of the 2008 financial crisis.

scholarly journals IPO Underpricing After the 2008 Financial Crisis: A Study of the Chinese Stock Markets

2018 ◽  
Vol 10 (8) ◽  
pp. 2844 ◽  
Author(s):  
Rui Li ◽  
Wei Liu ◽  
Yong Liu ◽  
Sang-Bing Tsai
Keyword(s):  
Financial Crisis ◽  
Initial Public Offering ◽  
Small Firms ◽  
Effective Means ◽  
Ipo Underpricing ◽  
2008 Financial Crisis ◽  
Before And After ◽  
The Difference ◽  
The 2008 Financial Crisis ◽  
Public Offering

A firm’s capability of raising funding is closely related to its sustainable development. With a more efficient allocation of funding among the whole society, social resources will be better utilized. Initial Public Offering (IPO) can indeed be an effective means of raising capital for corporate ventures. Using 1069 firms which completed IPOs on Chinese stock exchanges between 1st January 2004 and 1st January 2013, we investigate the difference in IPO underpricing before and after the 2008 financial crisis. Based on OLS regression models, we find that the IPOs are less underpriced in the post-crisis period. We examine the moderating effects of firm size on the difference in IPO underpricing between pre- and post-crisis periods, finding that small firms experienced less IPO underpricing than large firms after the financial crisis. After applying different model specifications such as Robust and OProbit regressions, the results remain consistent. Our study contributes to understanding the dynamics and influences of the financial crisis on firms’ IPO cost from the perspective of information asymmetry.

Role of Accounting and Audit in the Recent Financial Crisis

2013 ◽  
pp. 91-98
Author(s):  
Alev Dilek Aydin
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Fair Value ◽  
Financial Reports ◽  
Historical Cost ◽  
The Public ◽  
Creative Accounting ◽  
Recent Financial Crisis ◽  
Audit Reports

This study aims to assess the role of accounting and auditing in the recent financial crisis. After each crisis, there have been serious discussions concerning the reasons behind those crises. However, no consensus has yet been achieved until now. In this context, the analysis of the relationships among financial crisis, accounting, and auditing is of utmost importance in better evaluating the structural reasons behind the crisis. There are several points that this chapter aims to analyze to indicate the contributions of accounting and auditing to the recent global financial crisis. These points are: impacts of disregarding the main principles of accounting, the wide use of fair value accounting over cost-based accounting, incorrect and misleading financial and audit reports, applications of creative accounting, and lack of transparency and weaknesses of the auditing process. The debates generally concentrate on the use of fair value (mark-to-market) accounting in the financial reports as opposed to the historical cost method. It should be emphasized that accounting is very important as a key mechanism of market economies, because of its crucial role in the functioning of the markets in accordance with the public interest. The chapter concludes with several suggestions by taking the fact into consideration that accounting and auditing systems should be revised for the better protection of interests of the third parties such as investors, potential investors, and the state.

scholarly journals The Effect of the 2008 Global Financial Crisis on the Efficiency of Large U.S. Commercial Banks

2019 ◽  
Vol 12 (2) ◽  
pp. 11-27
Author(s):  
Seyed Mehdian ◽  
Rasoul Rezvanian ◽  
Ovidiu Stoica
Keyword(s):  
Financial Crisis ◽  
Commercial Banks ◽  
Global Financial Crisis ◽  
The United States ◽  
Commercial Banking ◽  
Scale Efficiency ◽  
Mortgage Loans ◽  
2008 Financial Crisis ◽  
Efficiency Measures ◽  
The 2008 Financial Crisis

AbstractThe 2008 financial crisis, originated by securitization of sub-prime mortgage loans, had a huge impact on U.S. financial institutions and markets. We hypothesize that due to this crisis, the commercial banking industry has changed their portfolio structures and risk-taking behavior. To shed light on the response of U.S. banks to the 2008 financial crisis, we use the non-parametric approach to measure and compare the overall efficiency of large U.S. banks pre- and post-2008 financial crisis. We then decompose the overall measure of efficiency into allocative, overall technical, pure technical, and scale efficiency measures to better understand the sources of banking inefficiencies. The results indicate that large U.S. banks indeed changed their portfolios structure, and the efficiency of large commercial banks in the United States declined substantially during the financial crisis. Although it has been recovering since then, it still has not reached to the pre-crisis efficiency level.

scholarly journals Risk Analysis of World Major Stock Index Before and After the 2008 Financial Crisis – Based on GARCH-VaR Approach

2018 ◽  
Vol 9 (2) ◽  
pp. 39
Author(s):  
Maoguo Wu ◽  
Yanyuan Wang
Keyword(s):  
Financial Crisis ◽  
Time Lag ◽  
Policy Implications ◽  
Stock Index ◽  
2008 Financial Crisis ◽  
Before And After ◽  
The 2008 Financial Crisis ◽  
Global Stock Markets ◽  
Stock Indexes ◽  
Global Stock

In 2008, the U.S. subprime mortgage crisis overwhelmed the global financial system, which sparked drastic fluctuation of world stock index. Subsequently, the risk of investment in global stock markets has augmented considerably. Applying the VaR approach based on GARCH model, this paper attempts to thoroughly investigate the volatility of S&P 500, NASDAQ, DJIA, GDAXI and CSI 300. For the purpose of comparison, data are divided into 2 parts: before the 2008 financial crisis and after the 2008 financial crisis. Thus, the paper elaborates impacts of the 2008 financial crisis on global stock index. In addition, this paper puts forward policy implications of risk control in Chinese financial market. According to empirical results, before the 2008 financial crisis, S&P 500, NASDAQ and DJIA were relatively stable; GDAXI was slightly fluctuant while CSI 300 fluctuated dramatically. When confronting with the 2008 financial crisis, the volatility of three American stock indexes surged at once, even exceeding that of CSI 300. GDAXI, however, experienced a time lag in the increase of volatility. So far, S&P 500, NASDAQ, DJIA and GDAXI have gradually recovered. On the contrary, CSI 300 still undulates frequently and erratically.

Contagion Effect Analysis of Financial Crisis in Soybean Futures Markets Based on Copula Functions

2012 ◽  
Vol 198-199 ◽  
pp. 885-888 ◽  
Author(s):  
Jian Bao Chen ◽  
Ting Yang ◽  
Huo Biao Zhou
Keyword(s):  
Financial Crisis ◽  
Futures Markets ◽  
Contagion Effect ◽  
Exchange Market ◽  
Copula Functions ◽  
Effect Analysis ◽  
Subprime Mortgage ◽  
Before And After ◽  
Tokyo Grain Exchange ◽  
Chicago Board Of Trade

Using five kinds of Copula functions to investigate the changes of correlations among soybean futures in Tokyo Grain Exchange, Chicago Board of Trade and Dalian Commodity Exchange market before and after the financial crisis caused by American subprime mortgage, this paper verifies the existence of contagion effect of this crisis in the international soybean futures markets.

Role of Accounting and Audit in the Recent Financial Crisis

2013 ◽  
pp. 1496-1503
Author(s):  
Alev Dilek Aydin
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Fair Value ◽  
Financial Reports ◽  
Historical Cost ◽  
The Public ◽  
Creative Accounting ◽  
Recent Financial Crisis ◽  
Audit Reports

This study aims to assess the role of accounting and auditing in the recent financial crisis. After each crisis, there have been serious discussions concerning the reasons behind those crises. However, no consensus has yet been achieved until now. In this context, the analysis of the relationships among financial crisis, accounting, and auditing is of utmost importance in better evaluating the structural reasons behind the crisis. There are several points that this chapter aims to analyze to indicate the contributions of accounting and auditing to the recent global financial crisis. These points are: impacts of disregarding the main principles of accounting, the wide use of fair value accounting over cost-based accounting, incorrect and misleading financial and audit reports, applications of creative accounting, and lack of transparency and weaknesses of the auditing process. The debates generally concentrate on the use of fair value (mark-to-market) accounting in the financial reports as opposed to the historical cost method. It should be emphasized that accounting is very important as a key mechanism of market economies, because of its crucial role in the functioning of the markets in accordance with the public interest. The chapter concludes with several suggestions by taking the fact into consideration that accounting and auditing systems should be revised for the better protection of interests of the third parties such as investors, potential investors, and the state.

COMPARATIVE TFP GROWTH BETWEEN GCC CONVENTIONAL AND ISLAMIC BANKS BEFORE AND AFTER THE 2008 FINANCIAL CRISIS

2020 ◽  
pp. 1-20
Author(s):  
AZZEDDINE AZZAM ◽  
BELAID RETTAB
Keyword(s):  
Financial Crisis ◽  
Technical Change ◽  
Islamic Banks ◽  
2008 Financial Crisis ◽  
Before And After ◽  
Product And Process Innovation ◽  
Product And Process ◽  
The 2008 Financial Crisis ◽  
Conventional Banks ◽  
Conventional And Islamic Banks

This paper measures and compares the performance of GCC conventional and Islamic banks in terms of total factor productivity growth (TFPG) before and after the 2008 financial crisis. The sources of TFPG are technical change, size economies, and observed asset growth. Technical change and size economies are measured by estimating a translog cost function and factor share equations. Results show that Islamic banks outperformed conventional banks overall and across different sizes. To the extent that product and process innovation improves TFPG, Islamic banks have weathered the 2008 financial crisis by being more innovative than conventional banks.

scholarly journals Impact of the collapse of the Lehman Brothers bank and the 2008 financial crisis on global economic security

2019 ◽  
Vol 191 (1) ◽  
pp. 149-158
Author(s):  
Radoslaw Mieszala
Keyword(s):  
Financial Crisis ◽  
Global Economy ◽  
Stock Exchange ◽  
The United States ◽  
Economic Security ◽  
Mortgage Loans ◽  
The Us ◽  
Lehman Brothers ◽  
The 2008 Financial Crisis ◽  
A Chain

The study presents the analysis of the economic phenomena that occurred at the turn of 2007/2008. The financial meltdown and stagnation – a slowdown in the growth of world economies, which led to a chain of bankruptcies and debts, took place in those years. Due to the domino effect, the Lehman Brothers activity had an impact on the global economy. The bank declared bankruptcy on September 15, 2008, which caused panic on the US stock exchange and a greater conviction about the crisis of high-risk mortgage loans. The result was multifaceted activities implementing proper corporate governance and deliberalization of financial law in the United States. The collapse of the colossus achieving record profits was, therefore, a kind of breakthrough that triggered a financial crisis that spread throughout the world. The State Treasury and the US Federal Reserve System joined the rescue of the company; nevertheless, negotiations with potential investors ended in a fiasco.

scholarly journals How Did Organizational Resilience Work Before and after the Financial Crisis? An Empirical Study

2018 ◽  
Vol 13 (10) ◽  
pp. 54 ◽  
Author(s):  
Pamela Palmi ◽  
Domenico Morrone ◽  
Pier Paolo Miglietta ◽  
Giulio Fusco
Keyword(s):  
Corporate Governance ◽  
Financial Crisis ◽  
Organizational Resilience ◽  
Long Term Outcomes ◽  
Before And After ◽  
Path Dependent ◽  
The 2008 Financial Crisis ◽  
The Empirical Analysis

The purpose of this paper is to assess the role of organizational resilience as an attitude, depending on the adoption of corporate governance, environmental and social practices (CESPs), in order to react to unexpected shocks, while preserving business sustainability. Organizational resilience is defined as the capacity for an enterprise to survive, to adapt and to grow in a turbulent change or unpredicted situation. Since organizational resilience is a latent path-dependent construct, it can be evaluated through long-term outcomes in an integrated perspective. The hypotheses are tested analyzing the economic performance of U.S. companies listed in Standard & Poor’s 500 index (S&P 500) and their environmental, social and governance (ESG) data has been extracted from Asset4. The period in the study covers 14 years, from 2002 to 2015, collecting the seven years before and after the 2008 financial crisis. The results of the empirical analysis highlight that economic performances of listed companies are influenced, over the 14 year period considered in the study, not only by the traditional sustainable pillars (SEPs), but also by the corporate governance ones (CESPs).

Sign in / Sign up

Export Citation Format

Share Document