Greece (2008) – Capital Injections,
2021
Yale University
Greece (2008) – Capital Injections, Manuel León Hoyos
Journal of Financial Crises
In October 2008, in the midst of the Global Financial Crisis (2007–09), the Greek government announced a €28 billion ($36 billion) government package. Greek Law 3723/2008, “Enhancement of Liquidity in the Economy in Response to the Impact of the International Financial Crisis,” was passed and approved under European Union State Aid rules. The Greek law provided for three voluntary programs: recapitalizations (€5 billion), guarantees (€15 billion), and securities (€8 billion). This case study exclusively examines the recapitalization program. In this program, the Greek government acquired convertible preferred shares in banks in order to build and maintain banks’ Tier 1 capital …
Germany Soffin Capital Injections,
2021
Yale School of Management
Germany Soffin Capital Injections, Priya Sankar
Journal of Financial Crises
The insolvency of Lehman Brothers in September 2008 and the subsequent global liquidity crisis spurred the German state to pass the Financial Market Stabilization Fund Act (Finanzmarktstabilisierungsfondsgesetz, “FMStFG”) establishing the Federal Agency for Financial Market Supervision (Bundesanstalt für Finanzmarktstabilisierung), or FMSA. Created in October 2008, it provided government support to ailing financial institutions. The FMSA supported German banks and maintained the stability of the German banking system, in part by establishing the Financial Market Stabilization Fund (Sonderfunds Finanzmarktstabilisierung), or SoFFin. SoFFin could provide capital injections and risk shield measures of €80 billion and also possessed a guarantee provision of up …
France Société De Prise De Participation De L’État (Sppe),
2021
Yale School of Management
France Société De Prise De Participation De L’État (Sppe), Devyn Jeffereis
Journal of Financial Crises
As the Global Financial Crisis deepened, the bankruptcy of Lehman Brothers on September 15, 2008, and ensuing contagion began affecting the French economy and financial system. France experienced declines in major economic indicators such as GDP, household consumption, and investment. In addition, the ensuing credit crunch in financial markets resulted in the seizing up of various lending markets. Due to conservative business practices, a consolidated market structure, and a sound regulatory framework, the French banks were relatively better situated than their European counterparts to weather the crisis. However, the French authorities instituted a precautionary recapitalization scheme in order to “restore …
Finland’S 1992 Capital Injection,
2021
Yale School of Management
Finland’S 1992 Capital Injection, Kaleb B. Nygaard
Journal of Financial Crises
Following a large-scale deregulation of the financial sector during the 1980s and subsequent massive credit expansion, a banking crisis in Finland caused a sharp contraction in the economy in the early 1990s. To prevent the collapse of the banking system, the government offered FIM 8 billion in capital injections. Parliament appropriated the funds in the spring of 1992 and terms were defined in June 1992. The program was open to all banks, in proportion to their size, regardless of their solvency. In the fall of 1992, FIM 7.9 billion was deployed to 56 cooperative banks and 22 savings banks of …
Danish Capital Injections Scheme 2009 (Dk Gfc),
2021
Yale School of Management
Danish Capital Injections Scheme 2009 (Dk Gfc), Priya Sankar
Journal of Financial Crises
Both the international financial system and Denmark were experiencing challenges in 2007 and 2008, and they came to a head in Denmark when Roskilde Bank experienced liquidity pressures in June 2008. As it became clear that Roskilde Bank was insolvent and no private solutions would be found, and as the global financial crisis worsened leading to the bankruptcy of Lehman Brothers, the Danish government decided to take stronger action. To ensure the short-term survival of Roskilde Bank, the national bank issued a non-limited credit facility. After it passed a deposit guarantee scheme in 2008 and established a Financial Stability Company, …
Austria: Finanzmarktstabilitätsgesetz (Finstag),
2021
Yale School of Management
Austria: Finanzmarktstabilitätsgesetz (Finstag), Claire Simon
Journal of Financial Crises
Following the adoption of a joint framework by euro area countries in response to the intensifying financial crisis in October 2008, Austria enacted a package of measures including the Financial Market Stability Act (Finanzmarktstabilitätsgesetz, or FinStaG). In addition to permitting nationalization under certain circumstances, FinStaG allowed the Austrian government to use six specific measures to recapitalize credit institutions operating in Austria and Austrian insurance companies. According to FinStaG, €15 billion ($22 billion) could be used for this purpose, though this amount was later increased. Eight institutions received support through FinStaG, and the government granted capital and liquidity support totaling €21 …
Shifting The Eu Taxonomy From Theory To Practice: A Review Of The Literature Highlighting Potential Academic Contributions To Its Adoption, Implementation, And Impact,
2021
Technological University Dublin
Shifting The Eu Taxonomy From Theory To Practice: A Review Of The Literature Highlighting Potential Academic Contributions To Its Adoption, Implementation, And Impact, Dylan Kirby, Sandra Thompson, Cormac H. Macmahon
Articles
The EU Taxonomy seeks to identify those sustainable economic activities, thereby supporting climate change mitigation and adaptation. Recent legislation underpinning the EU Taxonomy, such as the Non-Financial Reporting Directive (NFRD) and the Sustainable Finance Disclosure Regulation (SFDR), highlight the urgency for academic contributions that might shed light on its operationalisation. At this embryonic stage in the Taxonomy’s lifecycle, there is potential for the academic community to contribute to understanding its implications. Hence, we undertake a thematic analysis of predominantly, but not exclusively, professional literature to prioritise potential empirical research or conceptualisations that might offer insights for finance and accounting professionals, …
Intercollegiate Athletics Marketing-Generated Revenue: Within Autonomy Football Bowl Subdivision,
2021
University of Northern Colorado
Intercollegiate Athletics Marketing-Generated Revenue: Within Autonomy Football Bowl Subdivision, Alicia Romano, Jamie Riggs, Alan Morse, Yoon Tae Sung
Journal of Applied Sport Management
Intercollegiate athletic market-generating revenue (MGR) is of interest to administrators for increasing institution revenue. The driving factors of MGR (i.e., conference, facilities, and finances) need to be understood to allow target level planning for increasing MGR. Multiple linear regression was used to assess MGR on a sample of U.S. autonomy Football Bowl Subdivision institutions. Per capita attendance by designated marketing area, capacity, and contributions were shown to have a strong, quantifiable influence on MGR. By setting the levels of the facility and financial determinant variables, and adjusting for conference, the MGR may be predicted or targeted for institution revenue goals.
Identifying Board Of Director Network Influence For Firm Characteristics,
2021
Rensselaer Polytechnic Institute
Identifying Board Of Director Network Influence For Firm Characteristics, Aparna Gupta, Abena Owusu, Lei Zou
Department of Accounting and Finance Faculty Scholarship and Creative Works
We utilize multiplex network analysis to evaluate the relationship between firms’ characteristics and board of director networks. Studying a sample of 384 board members of 20 largest US energy and utility firms, 10 from each sector, the firms are differentiated by a clustering analysis on their firm-level characteristics. The firms’ board member connections are represented in a multiplex network consisting of two layers, one for the board members’ direct connections and another for their indirect connections. Four additional sub-layers are identified for each major layer of the multiplex network to represent corporate, non-profit organization, education and government/military connections between the …
Does Innovation Explain The Skewness Of Stock Returns?,
2021
Boise State University, Idaho, U.S.
Does Innovation Explain The Skewness Of Stock Returns?, Ahmed Baig, Hassan Anjum Butt, Abrar Fitwi, Joey Smith
American Business Review
This paper investigates the impact of firm-level innovation on the skewness of stock returns. Using data on a broad sample of equities from the major US stock exchanges, we find that innovative companies exhibit strong positive skewness. Our results are robust to both input and output measures of innovation as we find that increases in both firm-level research and development expenditure (R&D), as well as the number of patents, are positively associated with future stock return skewness. Our results hold using both systematic and idiosyncratic measures of skewness while controlling for various stock characteristics, time, and industry-fixed effects.
A Bibliometric Analysis Of Behavioral Finance And Behavioral Accounting,
2021
Indian Institute of Management Ahmedabad, India
A Bibliometric Analysis Of Behavioral Finance And Behavioral Accounting, Bharati Singh
American Business Review
This paper presents a bibliometric analysis of relevant publications in the field of behavioral finance and behavioral accounting. The analysis shows that the emerging themes of research in recent years in behavioral finance is on investors’ sentiment, social media, investors’ attention, and financial literacy. In the field of behavioral accounting, biases such as overconfidence, framing effects or cognitive constraints on information processing, have been explored in greater detail. Other than cognitive biases, this field includes studies such as behavioral tax, organizational ecology, and performance evaluative style of organization, among others. Interestingly, our analysis suggests that research in behavioral accounting …
Asia Embraces Digital Currency And Cryptocurrency,
2021
Singapore Management University
Asia Embraces Digital Currency And Cryptocurrency, David Kuo Chen Lee
Asian Management Insights
A decade ago, everyone was sceptical about cryptocurrency. Today, Asian governments are harnessing its technology to raise payment efficiency and improve financial inclusion. Initially, the technology was advocated and harnessed by ‘cypherpunks’, that is, individuals who advocate the use of cryptography and other strong encryption technologies to promote social and political change. At that time, being a cypherpunk meant standing on the opposite side of the government; today, I see cypherpunks, otherwise more appropriately known as cryptopunks, working closely with governments.
Making Money From Cryptocurrency? The Taxman May Call On You,
2021
Singapore Management University
Making Money From Cryptocurrency? The Taxman May Call On You, Hern Kuan Liu, Vincent Ooi
Research Collection Yong Pung How School Of Law
Miners, forgers, hobbyists, traders – different rules apply. Just don’t assume crypto investment is somehow immune to taxation.
The Influence Of United Arab Emirates National Culture On Leadership Styles In Higher Education Institutions,
2021
United Arab Emirates University
The Influence Of United Arab Emirates National Culture On Leadership Styles In Higher Education Institutions, Hamsa Saleh Al Ammari
Dissertations
Academic institutions and universities are complicated organizations led by professionals and academics who owe their knowledge and skills to their experience in education and leadership. In a country like the United Arab Emirates (UAE), education leaders who come from different cultural backgrounds practice their daily duties within a context where the local national culture imposes certain assumptions, beliefs, norms, and attitudes on them, thereby controlling their understanding of leadership and shaping their behavior. There has been little academic research into what constitutes the national culture of the UAE, a young, cosmopolitan amalgamation of seven Emirates, viewed internationally as an Arab, …
Algorithmic Transparency,
2021
Singapore Management University
Algorithmic Transparency, Jian Sun
Research Collection Lee Kong Chian School Of Business
I study the optimal algorithmic disclosure in a lending market where lenders use a predictive algorithm to mitigate adverse selection. The predictive algorithm is unobservable to borrowers and uses a manipulable borrower feature as input. A regulator maximizes market efficiency by disclosing information about the statistical properties of variables embedded in the predictive algorithm to borrowers. Under the optimal disclosure policy, the posterior belief consists of two disjoint regions in which the borrower feature is more relevant and less relevant in predicting borrower quality, respectively. The optimal disclosure policy differentiates posterior lending market equilibria by the equilibrium data manipulation levels. …
Stock Return Prediction Using Financial News: A Unified Sequence Model Based On Hierarchical Attention And Long-Short Term Memory Networks,
2021
Singapore Management University
Stock Return Prediction Using Financial News: A Unified Sequence Model Based On Hierarchical Attention And Long-Short Term Memory Networks, Haoling Chen, Peng Liu
Research Collection Lee Kong Chian School Of Business
Stock return prediction has been a hot topic in both research and industry given its potential for large financial gain. The return signal, apart from its inherent volatility and complexity, is often accompanied by a multitude of noises, such as other stocks’ performance, macroeconomic factors and financial news, etc. To better characterize these factors, we propose a new model that consists of two levels of sequence: an NLP-based module to capture the sequential nature of words and sentences in the financial news, and a time-series-based module to exploit the sequential nature of adjacent observations in the stock price. In this …
Volatility Timing Under Low-Volatility Strategy,
2021
Singapore Management University
Volatility Timing Under Low-Volatility Strategy, Poh Ling Neo, Chyng Wen Tee
Research Collection Lee Kong Chian School Of Business
The authors show that the slope of the volatility decile portfolio’s return profile contains valuable information that can be used to time volatility under different market conditions in the United States. During good (bad) market conditions, the high- (low-) volatility portfolio produces the highest return. The authors proceed to devise a volatility timing strategy based on statistical tests on the slope of the volatility decile portfolio’s return profile. Volatility timing is achieved by being aggressive during strong growth periods and conservative during market downturns. Superior performance is obtained, with an additional return of 4.1% observed in the volatility timing strategy, …
Joint News, Attention Spillover, And Market Returns Predictability,
2021
Singapore Management University
Joint News, Attention Spillover, And Market Returns Predictability, Li Guo, Lin Peng, Yubo Tao, Jun Tu
Research Collection Lee Kong Chian School Of Business
We analyze over 2.6 million news articles and propose a novel measure of joint news coverage of firms. The measure strongly and negatively predicts market returns, with a monthly R-squared of 3.93% in sample and 6.52% out of sample. The relation is causal, robust to existing predictors, and is especially strong when market uncertainty is high or when market frictions are large. At the firm level, joint news coverage is associated with a 20.3% increase in EDGAR downloads by new IPs from the investor bases of the other covered firms. Our evidence suggests that joint news triggers investor attention spillover …
Accounting And Finance Lessons In The Time Of Covid-19: Views From The Pacific Basin: Part 2,
2021
Singapore Management University
Accounting And Finance Lessons In The Time Of Covid-19: Views From The Pacific Basin: Part 2, Kuan Yong David Ding, Julie Harrison, Martien Lubberink, Chris Van Staden
Research Collection Lee Kong Chian School Of Business
The global COVID-19 pandemic is now in its second year, and we are fast approaching the third. The year 2021 has brought some hope that vaccination will lead to the end of the pandemic. But it has also brought a more infectious variant of COVID-19 and multiple waves of surging cases that show no immediate sign of disappearing. As the pandemic continues to impact global societies and economies, it is imperative that we study its impact to try and understand how it will affect us in both the short-term and long-term. While the longer-term impacts are still unknown, there is …
Socially Responsible Corporate Customers,
2021
University of Pennsylvania
Socially Responsible Corporate Customers, Rui Dai, Hao Liang, Lilian Ng
Research Collection Lee Kong Chian School Of Business
Corporate customers are an important stakeholder in global supply chains. We employ several unique international databases to test whether socially responsible corporate customers can infuse similar socially responsible business behavior in suppliers. Our findings suggest a unilateral effect on corporate social responsibility (CSR) only from customers to suppliers, an evidence further supported by exogenous variation in customers’ close-call CSR proposals and by product scandals. Customers exert influence on suppliers’ CSR through positive assortative matching and their decision-making process. Enhanced collaborative CSR efforts help improve operational efficiency and firm valuation of both customers and suppliers but increase only the customers’ future …
