The Study of Comprehensive Risk Management and Corporate Finance Constraints

The reasons why companies implement comprehensive risk management and the benefits it can bring to companies have been a subject of academic interest. However, there is still room for further exploration of this topic for the following three reasons: firstly, most of the existing literature is focused on the study of corporate performance and value, and there is less research on the level of corporate financing constraints; secondly, a few papers have initially explored the relationship between the implementation of comprehensive risk management and corporate financing costs, but the research on the intrinsic impact mechanism remains at the theoretical level and lacks empirical testing Finally, comprehensive risk management has been a hot topic in recent years, but most of the literature has focused on developed countries such as Europe and the US, and domestic research is still very limited. Therefore, this paper attempts to empirically test how the implementation of comprehensive risk management affects corporate financing constraints, in the hope that it can complement the existing literature.

Inside the black box: credibility and the situational power of central banks

Despite the consensus that the power of finance constraints central banks under financial globalization, the variation in their autonomy from market forces at the micro level of monetary policymaking remains underexplored. This article demonstrates that credibility endows central banks with situational power to make monetary policy decisions that involve less sacrifice of economic growth to price stability. Based on the comparative analysis of the policy decisions of central banks in two emerging economies, South Africa and Turkey, during 2013–2014, I show that this policy space stems from central banks’ capacity to successfully influence market expectations. The argument relies on public texts and over 130 interviews with central bankers in South Africa and Turkey and financiers in Johannesburg, Istanbul and London. The findings contribute to literature on central bank credibility and communication by exploring how credibility functions and creates room for central banks to maneuver through influencing contingent and performative expectations.

Do Vietnamese state-dominated listed firms face finance constraints?

Using accounting data of listed firms on the Vietnamese stock market this study documents that listed Vietnamese firms still face finance constraints, even after the introduction and rapid growth of the equity markets and the privatization wave that started since 1992. Contrary to most of the existing literature, especially large state-dominated firms were documented to be significantly more financially constrained.The cash flow sensitivity differences between the statedominated and private firms are economically large but statistically not significant.These findings are still consistent for both stock exchanges of Vietnam (HOSE and HNX).

Campaign finance constraints boost corruption in Peru

Significance Peru has been shaken by scandals surrounding the illicit funding of political parties and their election campaigns by corporate interests. With election costs in the ascendant and party militancy declining, parties have opted for surreptitious deals both with businesses and illegal organisations in return for policy favours. With further elections pending, this raises serious questions about how political life should be financed. Impacts Corporate donations, especially to the parties of the centre and right, will remain a feature of party funding. Stricter rules on party funding will lead to ever more elaborate forms of concealment. Use of social media may reduce party spending somewhat.

Infrastructure Investment in Europe

Using new estimates of infrastructure investment in Europe, this chapter documents a sharp fall in infrastructure investment activities in recent years, with government investment and investments targeted at transport infrastructure being most affected. The chapter discusses a broad range of reasons for the poor investment performance, including budget consolidation efforts—in particular, at the sub-sovereign level—low commercial returns to investment and, in certain market segments, access to finance constraints. The chapter concludes with a description of the role of the European Investment Bank in stimulating more infrastructure investment through its financing activities, its technical advisory assistance, and its input to regulatory and structural reform in Europe.