Current International Financial Crisis Research Articles

Analysis of the Formation and Revelation of International Financial Crisis Based on the Theory of Economic Crisis

At present, China is in a new period of rapid development, and a sound financial market and regulatory system is necessary to meet the needs of the market economy, achieve rational allocation of resources, and serve the real economy with financial precision. On this basis, this topic intends to explain the causes and essence of the occurrence of the current international financial crisis within the perspective of economic crisis theory, and on this basis, to discuss how to use economic crisis theory to control and contain the occurrence of the international financial crisis from the new development stage, so as to provide reference for our country to prevent and cope with financial risks in the new development stage.

Profit efficiency and earnings quality: Evidence from the Spanish banking industry

The analysis of efficiency and productivity in banking has received a great deal of attention for almost three decades now. However, most of the existing literature to date has not explicitly accounted for risk when measuring efficiency. We propose an analysis of profit efficiency taking into account how the inclusion of a variety of bank risk measures might bias efficiency scores. Our measures of risk are partly inspired by the literature on earnings management and earnings quality, considering that loan loss provisions, as a generally accepted proxy for risk, can be adjusted to manage earnings and regulatory capital. We also consider some variants of traditional models of profit efficiency where different regimes are stipulated so that financial institutions can be evaluated in different dimensions—i.e. prices, quantities, or prices and quantities simultaneously. We perform this analysis on the Spanish banking industry, whose institutions are deeply affected by the current international financial crisis, and where re-regulation is taking place. Our results can be explored in multiple dimensions but, in general, they indicate that the impact of earnings management on profit efficiency is of less magnitude than what might, a priori, be expected, and that the performance of savings banks has been generally worse than that of commercial banks. However, savings banks are adapting to the new regulatory scenario and rapidly catching up with commercial banks, especially in some dimensions of performance.

‘To activists: Please post and share your story’: Renewing understandings on civic participation and the role of Facebook in the Indignados movement

The global upsurge in protest, which has accompanied the current international financial crisis, has highlighted the extensive use of online social media in activism, leaving aside the extent to which citizenship is enacted, empowered and potentially transformed by social media use within these movements. Drawing on citizenship and communication theories, this study employs a cross-country analysis of the relationship between citizenship, civic practices and social media within the Indignados movement in Greece and France. By the use of semi-structured interviews, we attempt to discern the degree of involvement of actors with the political community in question and explore the complex layers of their motivations and goals around participation. Content analysis employed in the movement’s Facebook groups allows us to critically evaluate the potential of social media in (re)defining the meaning and practice of civic participation. Findings indicate that the failure of traditional forms of civic participation to attain and resolve everyday political issues becomes its potential to transfer the political activity in other sites of struggle. The role of Facebook is double: it can reinforce civic talk and debate through activists’ digital story telling (around shared feelings and personal stories) significant for meaningful activist participation online and offline. Second, it can support new forms of alternative politics inspired by more participatory modes of engagement.

La igualdad de género en la cooperación española y en la iniciativa Marca España. Abordajes e inconsistencias en tiempos de crisis

Since the nineties, human development and gender equality have become two central priorities of the international agenda and for the Spanish State. However, in the current international economic and financial crisis, and linked to agenda of macroeconomic stability and fiscal austerity set in rich countries, the promotion of human development seems to be on a second level. In this scenario, the progress made internationally in the promotion of gender equality through public policies is also at risk of being seriously affected. In the case of the foreign and cooperation policy of Spanish State, the official development aid is cut back to figures as in early eighties and, at the same time, the ‘Marca Espana’ initiative takes centrality. And, all of this in a scenario where we are attending a marginalization of gender content in the public agenda. This article looks at if there is a commitment to a pro-gender equality development according to the international commitments of the Spanish State. It specifically analyses if this commitment exists in the ‘Marca Espana’ initiative and in the Spanish cooperation policy for the period 2008-2014. Due to the impact of both policies in the development of Southern countries, it investigates whether gender equality is included or excluded as an objective in these policies, the different approaches adopted in this regards and the economic and institutional resources to promote gender equality. All this aims to identify possible transformations occurring in the analysis period, marked by the international crisis and the change of government, and the inconsistencies between the two policies that can limit the impact of the pro-gender equity efforts.

Earnings Quality and Performance in the Banking Industry: A Profit Frontier Approach.

The analysis of efficiency and productivity in banking has received a great deal of attention for almost three decades now. However, most of the literature to date has not explicitly accounted for risk when measuring efficiency. We propose an analysis of profit efficiency taking into account how the inclusion of a variety of bank risk measures might bias efficiency scores. Our measures of risk are partly inspired by the literature on earnings management and earnings quality, keeping in mind that loan loss provisions, as a generally accepted proxy for risk, can be adjusted to manage earnings and regulatory capital. We also consider some variants of traditional models of profit efficiency where different regimes are stipulated so that financial institutions can be evaluated in different dimensions — i.e., prices, quantities, or prices and quantities simultaneously. We perform this analysis on the Spanish banking industry, whose institutions have been deeply affected by the current international financial crisis, and where re-regulation is taking place. Our results can be explored in multiple dimensions but, in general, they indicate that the impact of earnings management on profit efficiency is of less magnitude than what might a priori be expected, and that on the whole, savings banks have performed less well than commercial banks. However, savings banks are adapting to the new regulatory scenario and rapidly catching up with commercial banks, especially in some dimensions of performance.

Determinants of Spanish Regions' Tourism Performance: A Two-Stage, Double-Bootstrap Data Envelopment Analysis

Despite the current international financial crisis, the tourism sector has managed to maintain high levels of activity. Against a backdrop of weak demand and stiff competition, efficiency has come to the fore as a key issue, especially in consolidated markets, such as Spain, where hopes that the sector will lead the way to economic recovery contrast with statements from the Competitiveness Monitor of the World Travel & Tourism Council that Spain is losing its competitiveness. In this article, the two-stage Simar and Wilson procedure is used to estimate the effect of a group of nine environmental factors on robust data envelopment analysis (DEA) estimates which act as a proxy of destination competitiveness for the Spanish autonomous communities (or regions) between 2002 and 2010. A brief discussion in terms of D- and E-attraction and cluster D-attraction is also included. The article contributes to the destination industry literature by adopting an approach that has not hitherto been applied to Spain.

Identifying and Regulating Systemically Important Financial Institutions

The current international financial crisis, which started in 2007 in the US and soon spread to the rest of the world, has revealed that the failure of an interconnected and complex financial institution, even though not necessarily large in terms of total assets, can threaten the stability of the entire financial system and have serious negative consequences for the real economy. In this study, we survey the analytical framework for identifying systemically important financial institutions (SIFIs) and discuss the various regulatory proposals that have been put forward at the national and global level to deal with SIFIs.

Wealth effects on consumption in financial crises: the case of Norway

A dynamic consumption function, where consumption in the long run is determined by households’ disposable income and wealth, has been superior to the Euler equation in explaining the development of Norwegian aggregate consumption over several decades. This period covers the years of financial deregulation in the mid 1980s, the banking crisis around 1990 following the deregulation and the current international financial crisis. In the current version, long run consumption is homogeneous in income and wealth and there is also a significant effect from after-tax real interest rates. A change in the correlation pattern between real interest rates and wealth, which is related to a change in the monetary policy regime, is the reason why both variables need to be included in the long run relationship in order to explain the development over the period 2005q1–2008q4.

Franchising - a key to success in times of financial and economic crises?!

Franchise has been highly accepted as a business strategy on a highly international level. In economically difficult times, the question arises in how far a financial or economic crisis impacts both the franchisor and the franchisee. The following article deals with the general financial and economic situation of franchise companies and is supposed to show the particular characteristics of franchising systems. The authors have conducted an empirical research in order to show the impact of the current international financial and economic crisis on franchising systems as well as to expose the advantages and disadvantages of franchising systems.

Análisis de la producción científica sobre Gobierno Corporativo a través de ISI Web of Science

Corporate governance constitutes nowadays one of the main topics of research in the fields of economics and business. The importance of the subject is not merely academic, if we consider the large number of codes of corporate governance promulgated in recent years, or the importance of corporate governance issues in the current international financial crisis. This paper has analyzed 2,147 publications on corporate governance included in ISI Web of Science, and their corresponding 79,635 citations, with the aim of identifying the prevailing research patterns in the field. In particular, we have traced the most significant publications and authors, the most productive authors, the journals in which they have published, and the approaches used to carry out the investigation.

The current international financial crisis in 10 questions: some lessons

This article aims to explore the most important sources and implications of the current international financial downturn, while analyzing and discussing a recently published book on finance by Professor Michel Aglietta, written in 2008, in which the author expands on the sources of the current international financial crisis and suggests several possible solutions. In particular, while analyzing Aglietta's answers to 10 questions, we examine, firstly, the most important microeconomic sources (i.e. governance problems, market imperfections, audit and new international financial reporting standard limitations) and macroeconomic explanations (i.e. the impact of the Asian crisis and the development of emerging models) for the current financial downturn. We then investigate the most notable features and characteristics of the current crisis. Finally, we identify the most widely expected economic, social, political and geopolitical outcomes of the present market turmoil and explain what we expect the financial world to look like once the crisis is over.

The financial Tower of Babel: roots of crisis

PurposeThe aim of this paper is to explore and discuss the causative factors of the current financial crisis from an Islamic perspective. This paper also examines Islamic finance as an alternative financial system and a potential long‐term solution to financial instability.Design/methodology/approachThe paper provides descriptive, analytical and comparative analyses.FindingsThe paper offers insights into the causes of the current international financial crisis. It highlights an alternative and a solution to this dilemma in the form of Islamic finance and stresses the stability of the Islamic finance system.Practical implicationsThe findings presented in this paper can be used by policy makers, regulators and practitioners in both the Islamic and conventional financial sector as they provides insights into factors that can insulate the market from future crisis. However, to expect a wholesale transformation to an Islamic financial system is idealistic.Originality/valueThis paper contributes to the understanding of Islamic finance principles and its value as a solution to the current and any future financial crises. A highly original conceptual idea is used in the metaphorical comparison to the Tower of Babel. The findings of this research will be of interest to western and Islamic financial practitioners, policy makers and academicians.

Development geography: Politics and ‘the state’ under crisis

This article examines theorizations of the state and politics in recent development geography. It argues that in the context of the current international financial crisis, questions about what constitutes the political and how to conceptualize the state in relation to development have taken on a renewed salience for development studies. It reviews recent research that traces the social and cultural production of states and markets, and identifies some important new work that contributes to understanding local mediations of state power. It argues that whereas the dramatic economic retrenchment of recent years has prompted reinvigorated attention to the politics of international development and the governance of international finance, critical development geographers have maintained a steady focus on these issues for many decades. It concludes with a call for sustained engagement with questions about development praxis and the role of the public intellectual in development studies.

A CRISE ECONÔMICO-FINANCEIRA INTERNACIONAL E SEUS IMPACTOS NA PRESERVAÇÃO DAS MICROEMPRESAS E EMPRESAS DE PEQUENO PORTE BRASILEIRAS

Thanks to a large evolution, it was created, in modern bankruptcy law, an environment which encourages the safeguarding of the company through the institutionalization of the so celebrated new ideology of its preservartion. This ideologism appears because of the significant social role of the company, most important institution of contemporary world, in national economy, with highlights on the micro and small companies, which together represent the incontestable most productive units in the country. The importance of such companies is incontestable, in the way that they enjoy a different treatment, which includes a special plan for recovery, much more simplified and less expensive, able to answer their peculiarities. It happens that with the current international economic and financial crisis, whose effects in Brazil are not kept unscathed, small businesses were severely impacted, mainly because of the retraction of credit. Thus, is importat to pay special attention to this business segment at this time of crisis, with emphasis on adoption of public policies that minimize the impacts of the crisis on it, to its preservation.

Ensuring sustainable antiretroviral provision during economic crises

Although the expansion of antiretroviral therapy (ART) in Africa has been celebrated for its success in providing treatment to more than four million people, there remain core challenges to expanding therapy to those in immediate need of care and those who will require it in the future [1]. The successes have depended substantially on funding from the international community, notably the Global Fund to Fight AIDS, Tuberculosis, and Malaria (Global Fund) and the U.S. government’s President’s Emergency Plan For AIDS Relief (PEPFAR). The current international financial crisis, and the United States financial crisis in particular, represents a major impediment to sustainable funding and the necessary increased numbers of patients on treatment [2]. The future of AIDS in Africa requires sustainable responses to ensure scale-up and maintenance of ART.

Moderne (finansiële) slawerny

Modern (financial) slavery There is probably no single person who has not been affected by the current international financial crisis. In order to understand what has happened, the reasons for the credit – and extended financial crisis are analysed and related to slavery. This article provides an international perspective, but also gives the South African perspective. From the article, it seems that the same factors that motivated people to apply slavery, today also motivate large corporations and individuals to keep hostage a large number of people in a spiral of increased consumerism. The consumer spending is financed by paying people more for their spare time and people taking up more credit. From the relentless way in which credit is being advertised, it seems that there is very little respect or care for the well-being of those trapped in debt. The prospects of ending the financial slavery are discussed and some recommendations are made regarding dealing with debt. The article closes with a call on the church to enter into the debate.

Building resilience to international financial crises: lessons from Brazil

PurposeThis paper sets out to argue that, due to a stable set of economic policies over the past decade, today Brazil is much more resilient to international financial crises than in the 1990s.Design/methodology/approachThe paper presents preliminary macroeconomic data in a country case study.FindingsThe paper concludes that the initial impact of the current international financial crisis on Brazil has been much less severe than similar crisis episodes in the past.Research limitations/implicationsGiven that the crisis is still unfolding, the paper presents only preliminary data regarding its impact on emerging markets.Practical implicationsThe paper suggests that emerging markets should adopt flexible exchange rate regimes and stable macroeconomic policies as a means to reduce their exposure to international shocks.Originality/valueThe paper makes an initial diagnosis regarding the impact of the international financial crisis on emerging markets that have adopted sensible economic policies, and is of interest to scholars, business people, and policymakers in developed and emerging countries.

The Economic Crisis: An Ideological Rorschach Test

The current international financial crisis, which began in the U.S. subprime mortgage market, and soon spread more generally through the financial system, has led to urgings from many quarters for increased government funds and increased government regulation. The calls for greater regulatory intensity have frequently been conjoined, particularly in the United States, with attacks on the “deregulatory impulses” or “deregulatory ideology” that were said by some to have characterized governmental attitudes in the early twenty-first century, and to have created the conditions that led to the financial crisis in the first place. The recent financial mess seems to have become a kind of ideological Rorschach test, representing to some an unmistakable picture of spectacular market failure, while others see an equally clear picture of spectacular government failure. Ideological and political opportunism threaten to cloud efforts to confront the causes of the recent crisis honestly, and take effective steps to prevent a subsequent economic disaster. From both ends of the political continuum, people of good will must commit themselves to ensuring that the clarity of intellectual honesty trumps the distortion of ideological bias.

Optimal Models and Approaches for Village Renovation Based on Urban-rural Harmonious Development: A Case Study of Sanya City

Due to rapid development of urbanization and industrialization, cultivated land will be continually occupied by constructions for a long time in future China and efficient approaches for cultivated land supplements are urgently needed to ensure food security. And, affected by the current international financial crisis, China's rural economic development requires a strong stimulation of investment and migrant workers need to find new platform for their employments. More importantly, building a new socialist countryside needs more efficient breakthrough point. As one of the most important tasks in new rural construction, village renovation is an indispensable part of urban-rural harmonious development. By virtue of village renovation and subsequent land consolidation to build a comprehensive land use system with the concept of unifying urban-rural development is a practical way to achieve urban-rural harmonious development. Village renovation is favorable to efficient land resource allocation, to mitigating conflict between cultivated land protection and urban construction and to flow of land production factor between urban and rural system. So exploring and summarizing optimal models and approaches for village renovation is sufficiently significant to urban and rural harmonious development. Based on the pilot work in Sanya city, eight principles and four village renovation models, namely urban-expanding model, projectleading model, central village-concentrating model and village-pulling down model are put forward in this paper. Additionally, the sustainable mechanism for village renovation is discussed in order to make sure a smooth application of the above models, including agricultural industry culti- vation and re-employment for peasants, financing channels and land use system renovation. All the works serve the objective to supply optimal models and approaches for village renovation in similar regions.

Economic Effects Of Cee Countries Integration Into The European Union

The integration of Central and Eastern Europe (CEE) countries into the European Union is supposed to bring them significant benefits. Along with the effects coming from changes in tariffs, accession to the EU internal market and free labor movement on GDP, consumption and terms of trade, the absorption of EU funds could help the process of convergence and catching up. Discussing the results of two “extreme” scenarios (full absorption of funds or non absorption at all, assumptions considered as not realistic) by the application of HEROM model for Romania, the study attempts to assess the impact of EU structural funds on foreign trade development, under the circumstances of different absorption rates, finding a stronger impact on exports compared with imports. However, adverse effects of the current international financial crisis could occur, affecting also the prospects for the Romanian economy.