Current Financial Crisis Research Articles

The Access to Performance in Romanian Academic System Possibilities for Increasing the Competitiveness of Universities in Romania

There is a debate among experts who analyse the involvement of universities in the economic life of the geographical area they cover, regarding the role that each of the components occupies, which is considered to directly contribute to regional development: the main product of education, the graduate and the technology transfer of university research. Through graduates with solid knowledge in a particular, current field with insufficient staff are quickly assimilated by society, universities strengthen their position on the educational market. Through technology transfer offers in dynamic areas of the economy, universities not only increase their prestige but procure the funds necessary to complete the financial deficit produced by underfunding, specific of many countries, including Romania, in the current global financial crisis. Universities everywhere make huge endeavours in order to be known, recognized. Therefore, the two aspects (graduate-student and research-technology transfer) are the best and most direct ambassadors for the prestige of any academic school. Romania is no exception, but regardless of the efforts made by academia in our country, most studies on the analysis of the role that universities play in society outline a weak partnership between universities and the economy in general and industry in particular. For this reason, in this paper, we want to analyse the competitiveness of universities in Romania in 2016, their role in economic life, we want to know how much and what part of university research is valued in real life, the causes and effects of the lack of involvement (in a greater degree) of all stakeholders - from governments to research assistants - and, last but not least, we want to discuss some solutions that would increase competitiveness among Romanian universities.

Caring for Children Under Three Years in Two Different Models of Welfare States: The Cases of Spain and Norway

This paper examines the policies and resources regarding the care of children under three years of age in two European countries that represent two different models of Welfare State, on the one hand Spain, framed in the Mediterranean or familist model and, on the other hand, Norway, enclosed in the Scandinavian model. Indeed, the care of children under three years is a matter of particular relevance since it influences directly on work-life balance strategies and also on gender and social equality. These aspects have been analyzed using the most relevant theories about the principles and motivations of the different Welfare State models. Simultaneously we have examined the existing resources in both countries and the challenges faced as a result of the social transformations occurred in recent decades and, specifically, the modifications in family policies and resources during the current financial crisis.

A NEW VIEW ON SOCIAL ADAPTATION OF THE MILITARY, DISCHARGED FROM MILITARY SERVICE IN BULGARIA

The thesis resulting from the research on the “costs-effects” relation is the principle of economic efficiency of defence capabilities. At first glance, the arguments in this direction are well-known and popular in crisis situations of various nature, including the current financial and economic crisis in the country, the question about the cost of public welfare- security and defence is debatable. This cost is manifested through the defence capabilities of a country. In the new security environment the compilation of a National Defence Strategy is a priority of the Defence Ministry, which has more and more limited resources. This means that they should be treated as an economic activity. An economic activity is considered “any purposeful activity, allocating and combining scarce resources among alternatives, making it possible to maximize the outcomes and minimize costs”. The ratio between the costs and benefits of a given resource or combination of resources to achieve a pre -defined objective is pushed to the forefront and the rationalization of management decisions is based on it. This necessitates a cost effectiveness analysis hence the evaluation of the outcomes (benefits) is manifested in the “cost-effect (benefit)” analyses.

Finite Element Structural Analysis of Big Yacht Superstructures

The current financial crisis is imposing shipbuilders to reduce costs and construction times in order to fight against orders cutback. In yacht design studios, based on improved aesthetics, this goal cannot be accomplished by skimping with internal and/or external furnishing, but it must be achieved by reducing weights and costs of structural components, which can compromise the static or dynamic stability or the structural strength of a super yacht. In this scenario, superstructure scantling is becoming the most critical aspect of structural design: they are built using materials, like aluminium light alloy, which has low mechanical characteristics. Moreover, on the superstructure sides, big openings are present, where traditional windows have been drastically enlarged to provide beautiful, vast panoramic views of the landscape for the owners and their guests. Furthermore, the aforementioned cutback of costs and weight is achieved by reducing beam scantling dimensions and plate thicknesses to the minimum imposed by the Classification Society Rules, which use too small safety coefficients; this trend might became very dangerous if loads acting on the yacht are not thoroughly assessed during the preliminary design stages.In this paper, the structural response of aluminium light alloy superstructures is studied by a finite element approach, coupled with static and dynamic loads imposed by the Classification Society Rules, with particular attention related to the buckling phenomena that occurs to slender stiffeners around windows.

Citius, Altius, Fortius in a deregulated labour market: narratives of precarious graduates

Labour markets foster qualification models and professionalisation strategies characterised by insecurity and deregulation. This article analyses narratives of precarious graduates through a subject-oriented approach, taking into account the increasing vulnerability, insecurity and fragmentation that characterise the professional experiences of graduates in the current global economic and financial crisis. Drawing upon information-rich evidence from 21 focus group interviews carried out in a research project in Portugal, this article aims to highlight how young graduates are experiencing, interpreting and managing dilemmas in their transitions from higher education into the labour market. It concludes that ambivalent and unpredictable paths have become the ‘main route’ for accessing a profession in a context of precariousness.

The synergy of the refugee crisis and the financial crisis in Greece: Impact on mental health.

The current global financial crisis that started in 2008 resulted in a significant decline in global trade, slowing/reversing economic growth worldwide, and a dramatic increase in public sector debt. At the same time, the global migrant/refugee crisis has reached extreme rates, with millions of people being forced to abandon their homes and communities because of war, political violence or related threats. There is a broad consensus about the deleterious consequences of these crises on psychological well-being, depression, anxiety disorders, insomnia, alcohol abuse and suicidal behavior. Although the separate consequences of economic recession and immigration are extensively discussed in previous research, we know very little about the processes through which the intersection of economic crisis and migrant crisis contributes to the vulnerabilities of natives and migrants during these crises. Of particular concern is the status of children, adolescents and their families, who constitute one of the most vulnerable groups in society. To discuss the contexts that economic and migrant crises shape and suggest possible effects of this intersection on mental health risks, especially among children, adolescents and their families, through reflecting on the recent experience in Greece. Review of the literature and critical analysis of the effects of the confluent crises. The interactive effects of these two crises need further exploration. Novel and diverse models of psychological understanding need to be developed in order to manage the effects of the confluent crises. The role of mental health professionals is crucial in this respect, offering culturally flexible, accommodating and empathetic approaches, allowing healing and acceptance in the face of adversity.

Application of conditional value at risk for credit risk optimization

The article is dedicated to the optimization of credit risk through the application of Conditional Value at Risk (CVaR). CVaR is a risk measure, the expected loss exceeding Value-at-Risk and is also known as Mean Excess, Mean Shortfall, or Tail VaR. The link between credit risk and the current financial crisis accentuates the importance of measuring and predicting extreme credit risk. Conditional Value at Risk has become an increasingly popular method for measurement and optimization of extreme market risk. The use of model can regulate all positions in a portfolio of financial instruments in order to minimize CVaR subject to trading and return constraints at the same time. The credit risk distribution is created by Monte Carlo simulations and the optimization problem is solved effectively by linear programming. We apply these CVaR techniques to the optimization of credit risk on portfolio of selected bonds.                  Keywords: value at risk; conditional value at risk; credit risk; portfolio

Application of conditional value at risk for credit risk optimization

The article is dedicated to the optimization of credit risk through the application of Conditional Value at Risk (CVaR). CVaR is a risk measure, the expected loss exceeding Value-at-Risk and is also known as Mean Excess, Mean Shortfall, or Tail VaR. The link between credit risk and the current financial crisis accentuates the importance of measuring and predicting extreme credit risk. Conditional Value at Risk has become an increasingly popular method for measurement and optimization of extreme market risk. The use of model can regulate all positions in a portfolio of financial instruments in order to minimize CVaR subject to trading and return constraints at the same time. The credit risk distribution is created by Monte Carlo simulations and the optimization problem is solved effectively by linear programming. We apply these CVaR techniques to the optimization of credit risk on portfolio of selected bonds. Keywords: value at risk; conditional value at risk; credit risk; portfolio

Financial Soundness Prediction Using a Multi-classification Model: Evidence from Current Financial Crisis in OECD Banks

The paper aims to develop an early warning model that separates previously rated banks (337 Fitch-rated banks from OECD) into three classes, based on their financial health and using a one-year window. The early warning system is based on a classification model which estimates the Fitch ratings using Bankscope bank-specific data, regulatory and macroeconomic data as input variables. The authors propose a “hybridization technique” that combines the Extreme learning machine and the Synthetic Minority Over-sampling Technique. Due to the imbalanced nature of the problem, the authors apply an oversampling technique on the data aiming to improve the classification results on the minority groups. The methodology proposed outperforms other existing classification techniques used to predict bank solvency. It proved essential in improving average accuracy and especially the performance of the minority groups.

Knowledge and attitudes of women regarding gynaecological cancer prevention in an urban area of Greece in financial crisis.

Preventive gynaecological examinations (PGEs) are the main means of monitoring gynaecological cancers across the developed world. The purpose of this study was to investigate the perceptions and attitudes of women of a regional municipality of Greece, regarding preventive gynaecological examinations amid economic crisis. The study included 360 women aged 20-70 years, who lived in an urban area of Greece. A specialised, valid and anonymous questionnaire that included questions about perceptions and attitudes regarding preventive gynaecological examinations was used. The data analysis was performed using the statistical package spss 21. It was found that women who lived in less developed areas had had lower educational levels and higher abstinence rates from medical examinations. The main source of information about sexually transmitted diseases was their social circle (48%), but the gynaecologist is the one preferred (54.8) to inform about preventive gynaecological examinations. Thirty per cent of the participants had never have a mammogram, while 33.9% of the sample did not show the same result, although considered the Pap test necessary. The main cause of women's abstention of preventive gynaecological examinations is the financial crisis. The current financial crisis has negatively affected the women's ability to afford gynaecological examinations. Therefore, it is necessary to inform the population about the necessity of preventive gynaecological examinations starting from school age and at the same time, health information and promotion campaigns should be launched at a national level.

REQUIREMENTS FOR INTERMEDIARIES AND ADVISORS IN THE AREA OF MORTGAGES RESULTING FROM MORTGAGE CREDIT DIRECTIVE- IMPLICATIONS FOR POLAND

The dynamic development of the mortgage market, especially in the period before the current financial crisis, revealed that within the EU there are local mortgage credit markets and that it is necessary to harmonize the rules of the system and consumer protection within the Community. The intention of the creators of the Mortgage Credit Directive was to organize the mortgage lending market for residential purposes and make it transparent, as well as increase the safety of the consumer credit market, along the lines of what took place earlier in the consumer credit market regulations (The Consumer Credit Directives no. 2008/48/EC and earlier no. 87/102/EEC). The Mortgage Credit Directive implies for lenders - credit institutions to act at every stage of the lending process with respect to the consumer’s interest and to provide them with adequate services for their needs. Due to the large role of indirect distribution channels of mortgages by banks there are certain requirements for intermediaries, brokers and credit advisors. The implementation term of the Directive, appointed for March 2016, implies action to be taken in order to implement the provisions of this Directive into Polish law. The legislative process is being conducted by the Ministry of Finance and supported by the Group on implementation of the Mortgage Credit Directive operating with the Council of Financial Market Development.

Društvena odgovornost banaka u vrijeme financijske krize: ususret direktivi Europske unije o nefinancijskom izvještavanju

The current financial crisis reaffirmed the relevance of social responsibility and ethics in financial products. Frauds, scandals, collective law suits by organizations for consumer protection, negative reputations as well as increasing anti-corporate activism have not circumvented the banking industry. In a situation of constant emphasis of social costs and operating damages, the banks are expected to embrace social responsibility more significantly, as well as to endure the sizeable burden of the economic crisis. According to the legitimacy theory, the voluntary adoption of the corporate social responsibility concept within the banking business may serve as a method of building up the reputational capital of the banks and regaining the trust of society in banking products, all segments where it is important that socially responsible actions are adequately reported and disclosed. Thanks to the 5/EU on non-financial reporting of large-sized and listed companies as well as public-interest entities, social responsibility reporting will soon become mandatory for the banking sector. By giving an insight into the scale of social responsibility reporting of selected Croatian banks, this paper will address responsibility reporting has increased during the financial crisis, as the legitimacy theory suggests. It will also give an answer how prepared are banks for the new regulatory requirements in the nonfinancial reporting area.

Dynamic Conditional Correlation between Electricity, Energy (Commodity) and Financial Markets during the Financial Crisis in Greece

Liberalization of electricity markets has increasingly created the need for understanding the volatility and correlation structure between electricity, financial and energy commodity markets. This work reveals the existence of structural changes in correlation patterns among these markets and links the changes to both fundamentals and regulatory conditions prevailing in the markets, as well as the current European financial crisis. We apply a Dynamic Conditional Correlation (DCC) GARCH model to a set of market’s fundamental variables, related commodity markets and Greece’s financial market and microeconomic indexes to study their interaction. Emphasis is given on the period of severe financial crisis of the Country to understand “contagion” and volatility spillover between these markets. This approach enables us to capture the changing co-movement of assets within and between markets (financial, commodity, electricity) as market conditions change. The main results are that there is strong evidence of volatility spillover (or co-volatility) between financial and commodity market, while the Greek electricity market seems to be almost “isolated” from these two markets.

Innovación social y capacidad institucional en Latinoamérica

The current economic and financial crisis has caused that the more developed countries are giving up the old belief in an omnipotent State and an unlimited level of wellbeing, while in Latin America is questioning the extension and consolidation of basic public services. Today, the ability of States to deal with the diversity of citizen demands and needs, to bring public action to the whole population and to combat poverty is questioned. To this is added the loss of public confidence in public institutions and their members and leaders. We are experiencing profound changes in the society and the market that show that they are assuming a growing role in the satisfaction of the needs of the community. Thus appears an enlarged reality of the public service, which can no longer be referred to the administrative or state. Simultaneously, the State expands its role as an enabler, guarantor and activator of society and is required to be oriented towards inclusion, participation, representation and effective partnerships. In this context rises up the approach of social innovation that feeds on the evolution of ideas and governance of previous decades and the principles of the knowledge society, such as collaboration and the connection of talent, and which is being built primarily from international organizations and governments. One of its main objectives is the coproduction of public services in order to promote the renewal of the public sector and to cover its insufficiencies. It will be maintained that the characteristics of institutional development condition social innovation initiatives, specifically the characteristics that define institutional capacity, as it has been observed in most Latin American countries in the last decade with the guarantee and extension of public services. The shortcomings in the coverage of these and the rest of unsatisfied needs show a wide field of action of social innovation in Latin America.

Corporate culture diagnostics in management control:Evidence from Ukraine

(ProQuest: ... denotes formulae omitted.)IntroductionThe modern world is characterized by increasing chaos and uncertainty. As a result, the economy is becoming turbulent, volatile, dynamic and prone to crisis. The current global economic and financial crisis constantly escalates. In this context, Stiglitz stressed [Stiglitz 2012] that after every crisis there was an explanation that contradicted the next crisis or at least it showed that the previous explanation was inadequate. The result is an increase in state outlined risks at the international, country and company levels. Management control of corporate culture can be a powerful tool in stabilizing the chaotic environment [Kuznetsova 2011]. In author's opinion the role of information in the functioning of society, which is always important, has dramatically increased with the development of ICT and their expansion into all areas of life [Żelazny 2015].It is important to form the assessment results not only of its current state, but also of the trends and prospects of development that helps to make the informed management decisions aimed at addressing problematic issues and weaknesses in the corporate culture management and take advantage of the company. Therefore, it is an urgent need to diagnose corporate culture as an object of management control and a subject of profitability and stable growth through the launch of cultural control mechanisms.The research aim is to create a model of corporate culture diagnostics for simulation in management control. This model must provide comprehensive diagnosis of the corporate culture condition by: 1) the 3 structure levels (basic underlying assumptions, espoused beliefs and values, visual artifacts); 2) intensity of display of the functions that define the purpose of corporate culture for the company. The objective of using this model is to increase the efficiency of corporate culture as an additional quality tool of profitability and stability of the company.To answer the research questions described above the paper is organized as follows. In the section 'theoretical background' is described the existing research on corporate culture and includes the literature review of corporate culture diagnostics and the levels and indicators of corporate culture diagnostics. In the next section the research method is selected. This is followed by the description of the model of corporate culture diagnostics defining the levels and indicators of assessment. The most important research results are introduced in the successive part. The key contributions are presented in the concluding section.1. Theoretical backgroundA preliminary study of the literature [Bozeman, Kingsley 1991; Mohan 1993; Levin, Gottieb 2009; Schein 2009; Levy, Lammare, Twining 2010; Cameron, Quinn 2011; Jackson 2011] has helped to define the most fundamental research issues of corporate culture diagnosis in international science including the clinical research method [Schein 2009] and the method of corporate culture diagnosis [Cameron, Quinn 2011]. It is necessary to evaluate these developments critically in terms of their effectiveness under the current conditions of formation of the knowledge-driven economy in the world, information support of society and general instability of the economic system.Schein [2009] proposed to investigate corporate culture with the use of clinical research. While doing so, he draws attention to the fact that only this method can detect group members' deep understanding. According to Schein, effectiveness of culture is determined in accordance with formation of its components as follows: level 1 is the basis of corporate culture which includes the basic underlying assumptions fundamental for external manifestation and determining espoused beliefs and values as well as visual artifacts; level 2 is espoused beliefs and values which are based on the basic underlying assumptions and create visual artifacts; level 3 is visual artifacts: the rules and norms of behavior which are established based on the declared values. …

Audit reporting for going concern in Spain during the global financial crisis

The current world financial crisis is causing real difficulties in the operation of firms and has generated renewed interest in audit reports. This study aims to analyse the impact of the financial crisis on the audit reports issued by auditors. We focus especially on those reports that contain questions relating to going concern situations. The sample analysed is formed by 2935 audit reports of unlisted Spanish firms for the years 2007–2010. From the results obtained we can affirm that the crisis being suffered by Spanish firms has not gone unnoticed by audit professionals. Our research reveals that as the crisis in Spain has worsened, the proportion of reports that include references to going concern situations has increased in comparison with 2007, when the financial crisis had not become manifest in Spain. The sectors of the Spanish economy most affected by the crisis are real estate and construction. Taking into account whether the audit firm issuing the report is Big-4 or Non-Big-4, no significant differences can be appreciated in the percentage of reports issued with going concern qualifications before the start of the crisis (2007) and during the crisis (2008–2010).

Women's entrepreneurship in Northern Portugal: psychological factors versus contextual influences in the economic downturn

The study's purpose is to identify the psychological profile of women entrepreneurs, and assess the extent to which their entrepreneurial motivation may be influenced by the territorial and conjunctural contexts in which they operate, and by their capacity to reconcile the demands of family and business. A questionnaire was used to gather data on recent entrepreneurial initiatives by women in Northern Portugal. Structural equation models validated the links between women's dual role (family/business) and their psychological/cognitive profiles, their business start-up propensity and the firms' success. The study suggests that while a correlation exists between motivation and business environment that positively influenced women's start-up decisions and subsequent success, the motives underpinning decisions in rural and urban contexts differ. However, women prove capable of effectively managing their dual role as wife/mother and entrepreneur regardless of territorial context. The paper confirms women's capacity to reconcile the demands of work and family as a key variable, offers tentative conclusions as to how the current economic and financial crisis may influence women's entrepreneurial motivation, and recommends new directions in research that may better inform entrepreneurship theory, practice, policies and teaching.

The Economics of NPA Behaviour in the Global Economy

NPA is a vexing problem which has been globally effecting economies for a long time. The mounting NPA levels in banks and financial institutions calls for earnest attention and immediate action as it is a menace to the public. Bank credit motivates economic growth of the country and any obstruction in the undisturbed flow of credit, a significant cause for which is the heightened NPA levels, is detrimental to the health of the economy. The issue of Non-performing assets (NPA), the blatant cause of the current global financial crisis, has been drawing the attention of all and sundry for its rapid manifestation in the present financial structure. The primary objective of this paper is to understand the economic and mathematical models backing the phenomenon of NPAs. In this regard we have utilised the basic Keynesian economics to study behaviour of NPAs at the macroeconomic level and hence make viable conclusions and give policy suggestions regarding the same.

CONCEPTUAL APPROACH TO PLANNING FOREIGN ECONOMIC ACTIVITY OF MACHINE-BUILDING COMPLEX

Identified the key role of engineering, and in particular its foreign trade activities in the economic development of the state. Specified deepening in recent years and the current financial and economic crisis in the engineering industry.It is established that the existing control methods are not able to become a key link in ensuring the competitiveness of the domestic machine-building complex, in the external and domestic markets. Proved the key role of planning in the process of formation of effective system of management of foreign economic activity of machine-building complex. The features of planning. Determined the most appropriate model of strategic planning for use in planning of foreign economic activity of machine-building complex. The necessity and timeliness of the allocation of the strategic segments within the engineering industries. Developed conceptual provisions of planning of foreign economic activity of machine-building complex at the expense of justification and inclusion to facilities planning strategic segments formed within the engineering industries, the functioning of which will ensure the competitiveness of the whole machine-building complex on the world market. It has been proved that the formation of strategic segments will allow to harmoniously integrate the competitive advantages and competencies of existing engineering enterprises and to gain new and more significant factors of success which will be a key element for success in the engineering competition in the international market.

Psychiatric reform in Greece: an overview.

Leros became infamous worldwide in the 1980s because of a scandal in its mental institution, the Leros asylum. The scandal provoked universal outrage and the international pressure triggered the Greek mental health reform. Under the reform projects Leros I and Leros II (1990–1994), numerous interventions took place in the Leros asylum as part of deinstitutionalisation. Following that, the Psychargos programme advanced developments for community-based services. Deinstitutionalisation and development of community mental health services have advanced significantly since the 1980s. However, this reform is still incomplete, given that sectorisation, adequate primary care policies, inter-sectoral coordination and specialised services are under-developed. This problematic situation is further complicated by the severe impact of the current financial crisis.