Greek Economic Crisis Research Articles

Disrupted Lending Relationship and Borrower's Strategic Default: Evidence from the Tourism Industry During the Greek Economic Crisis

Disrupted Lending Relationship and Borrower's Strategic Default: Evidence from the Tourism Industry During the Greek Economic Crisis

Disrupted Lending Relationship and Borrower's Strategic Default: Evidence from the Tourism Industry During the Greek Economic Crisis

Disrupted Lending Relationship and Borrower's Strategic Default: Evidence from the Tourism Industry During the Greek Economic Crisis

Inward and Outward FDI and the Shadow Economy during the Greek Economic Crisis

Inward and Outward FDI and the Shadow Economy during the Greek Economic Crisis

The Janus faces of (anti-)corruption rhetoric in Greece

The article outlines the use of corruption rhetoric in Greek politics based on official reports and press publications in selected years and examines the functions it fulfils. In the beginning of the article, an overview of international research and its contextual background about corruption is provided. The absence of historical accounts in the (anti-) corruption literature is noted and an overview of factors that have been correlated by researchers with corruption is given, such as degree of democracy, (de)centralization of the political system, media scandalization, etc. The article briefly presents the approach of Greek analysts to the topic. Issues concerning old and new forms of clientelism, which held the most interest for Greek academics, are analysed. Also, the discourse analysis carried out and its findings is portrayed. The analysis reveals that politicians’ corruption rhetoric operates primarily as a strategy that is capable of undermining the morale of the main political opponent(s) and occasionally as a method of ensuring electoral supremacy. The rather unhelpful attempts of the Greek governments to improve the position of the country in the anticorruption universe by introducing successive legislation, new bodies and institutions to control corruption, while disregarding the fact that the main efforts should be focused on Greece’s market image are illustrated. A positive change in the country’s image in the market came incidentally during the last few years of the Greek economic crisis thanks to neoliberal economic policies under the tutelage of foreign lenders.

Emotions and migration in social media discourse: A new Greek migrant case study

Since the onset of the Greek economic crisis in 2010, thousands of highly educated and skilled Greeks have migrated abroad in search of better career prospects and living standards. This recent migratory wave has been termed ‛new’ Greek migration (Panagiotopoulou et al., 2019). The lives of new Greek migrants are characterised by a mélange of conflicting emotions: loss of belonging, irritation at Greek policies and mentalities, and suffering for the family who remains in Greece facing the crisis, on the one hand; hopes of new beginnings and potential for new opportunities and fulfilling one's goals in the host country, on the other. Drawing on insights from the constructionist approach to emotions, discourse analysis, and online ethnography, this paper looks at how a new Greek migrant in the UK conveys across social media his emotions towards specific events and people both in Greece and the UK. The findings showcase social media's vital role in allowing, mobilising and sharing affective expression. They also shed light on the broader discursive and emotional aspects of new Greek migration.

Identity entrepreneurship in political commemorations: A longitudinal quantitative content analysis of commemorative speeches by leaders of parties in power and opposition before and during the Greek economic crisis

This study analyses quantitatively the content of thirty-nine political speeches made by political leaders of three political parties – New Democracy, Panhellenic Socialist Movement (PASOK) and Coalition of the Radical Left (SYRIZA) – of different status represented in the Greek parliament. The leaders of these parties release annual commemorative speeches of the restoration of Greek democracy on 24th July 1974. The focus of this study is on longitudinally analysing the content of commemorative speeches, looking at how political leaders communicate the historical event, by quantifying through a content analysis various forms of ingroups and outgroups in their annual commemorations. Such constructions were ventured during a period of 13 years, from 2004 to 2016, before and during the break out of financial crisis in 2010. Longitudinal quantitative content analysis identified differences in the use of we-referencing and they-referencing language, varying per status of parties and context of release of commemorative speeches. I view commemorative speeches as a non-neutral history-related business that requires mobilisation of audiences in different ways and different contexts. Implications of commemorating the historical past across time as institutional identity practice are discussed.

Decomposing Poverty in Hard Times: Greece 2007-2016

The Greek economic crisis resulted in a decline in household disposable income by more than 40%. Even though all population groups lost income in absolute terms, some were substantially more severely hit by the crisis. The paper examines the effect of the crisis on the population shares, the mean incomes and the level of poverty of various population groups using SILC data for the period 2007-2016. The population is partitioned according to four criteria: socioeconomic group of the household head, presence of unemployed individuals in the household, age of the population member and household type. When “anchored” poverty lines and distribution-sensitive poverty indices are employed, the level of poverty rises to incredibly high levels. When the poverty lines used are “relative”, the poverty rate does not change substantially but when distribution-sensitive indices are used the increase in poverty is very substantial. The most interesting results are related to the changes in the structure of poverty. The crisis was associated with a very substantial increase in unemployment. Unemployment protection in Greece was inadequate while there was no “benefit of last resort”. As a result, the relative position of households with unemployed members (and, especially, with unemployed heads) deteriorated sharply, while their contribution to aggregate poverty skyrocketed. Unlike what is often claimed in the Greek public discourse, the relative position of pensioner-headed households improved, although they also experienced a considerable decline in their living standards.JEL Codes: D31, I31, I32.

Non-performing loans in the hotel industry: The case of Greece

Throughout the Greek economic crisis, the problem of rising stock of non-performing loans (NPLs)[1] gradually evolved into one of the most challenging structural deficiencies faced by the Greek banking sector. Despite outstanding performance of the Greek tourism sector, which over the last five years attracted record number of tourists each year, NPLs in the hotel sector remain widespread. The objective of this study is to identify macroeconomic factors and sector-specific characteristics, which led to NPL stock piling in Greek tourism sector. Our findings are supported by rare dataset on NPLs in Greek hospitality sector compiled from publicly available sources. We apply descriptive quantitative analysis to the data from the Bank of Greece, the Hellenic Statistical Authority and other official sources. We found that, despite the record performance of the Greek tourism sector, hotel loans are as problematic as loans issued to other sectors of the Greek economy. Our findings contribute to the NPL literature by providing valuable insights for the Greek hotel industry’s NPL stock, especially in view of the fact that such academic research has not been conducted before.
 
 [1]The term ‘NPLs’ is used as a shorthand term to denote all Non-Performing Exposures (NPEs) (ECB, 2017).When a customer delays payment of a loan that is subject to a specific contract with a bank for more than a predetermined number of days then this is considered NPL. Depending on the country, bank, and applicable provisions, the number of days may refer to more than 30, 60 or 90 days (IMF, 2011). The European Supervisory Authorities consider a loan as non-performing when the borrower has been late for more than 90 days to pay the agreed installments to the financial institution that has contracted the contract. According to the European Central Bank (2016), loans repaid by the borrower within the agreed term are considered to be "serviced". Due to the fact that the definition of NPLs is based on a variety of different interpretations, the European Banking Authority attempted to give a single definition through the term ‘NPEs’. NPEs include not only loans but all debt instruments (loans, advances and debt securities) as well as off-balance sheet exposures. NPEs include either of the two criteria:
 - Long-term openings that have exceeded the 90-day limit,
 - "Uncertainty collection" exposures qualifying as non-serving, although they are either current or have a delay of less than 90 days.

The Effects of Corporate Bonds on Employment: Early Evidence from Greece

This study investigates the impact of corporate bonds issued by Greek listed firms on employment. Even though external financing and the effects on employment has been studied in the literature, we extend the existing literature by focusing for the first time on the specific role of corporate bonds on employment. We have collected all the relevant papers on this line of the literature and concisely report them in a table format and then use them in analyzing our results. Our empirical analysis is based on a panel dataset from 2001 to 2014 and we examine the effect of corporate bonds in the pre and post period of the Greek economic crisis, in which the banking system is vulnerable and unable to provide financing to the firms. The results suggest that corporate bonds have a positive effect on employment in the pre-crisis sample, denoting that firms hire employees and proceed to investment choices. On the contrary, during the recession, corporate bonds have a negative effect on employment. Firms reduce their costs and try to control their debt obligations by issuing corporate bonds.

Aggression in media-sharing websites in the context of Greek political/parliamentary discourse in the years of the economic crisis

Abstract In the context of the Greek economic crisis during the years 2009–2019, the aim of the present study is to discuss language aggression and derogatory forms of speech attested in user polylogues commenting on instances of parliamentary discourse uploaded to computer mediated communication networks. Within the framework of (im)politeness research (Culpeper 2005, 2011; Garcés-Conejos Blitvich 2010a; Haugh 2013; Lorenzo-Dus, et al. 2011; Mitchell and Haugh 2015), we investigate the correlation between impoliteness and abusive verbal discourse in both domains, i.e. parliamentary sittings and social media commentary. We explore their potential to establish a common ground in viewing political issues and determining ideological polarizations. We also attempt a preliminary analysis of swear words and derogatory references to Greek political personnel and their instrumentalisation for the division of the readership into those who support and those who oppose different political agendas.

United we stand? Marketization, institutional change and employers’ associations in crisis

The continuous process of marketization of employment relations in a variety of European countries has raised questions about the power of collective social actors and their legitimizing role in policy-making. The article examines the responses of employers’ associations to institutional changes towards marketization in the context of the Greek economic crisis. The analysis exposes the hidden fractures between and within the peak-level employers’ associations and unveils a variation in their strategic responses towards institutional changes. To explain this variation, the article advances a power-based explanation and argues that the institutional changes altered the associations’ interest representation and power resources, which, in turn, redefined their role and identities in the employment relations system.

ICT-related Behavior of Greek Banks in the Economic Crisis

ABSTRACT This article analyzes the ICT-related behavior of the five ‘system-relevant’ Greek banks in the first years 2010–2014 of the Greek economic crisis. We conclude that besides the standard immediate reaction to the crisis by reducing ICT-related expenses, the Greek banks in a later phase of the economic crisis proceeded to a substantial rationalization of their ICT processes/practices and improvement of their ICT capabilities, as well as the adaptation of their ICT plans to the crisis conditions.

We survived this! What managers could learn from SMEs who successfully navigated the Greek economic crisis

Small and medium size enterprises in both business to business and consumer markets are particularly vulnerable to economic downturns. Concentrating on the Greek economic crisis, one of the toughest and most prolonged on a global scale, the present research sheds light on both anthropocentric and business-centric factors that helped SMEs survive, therefore, providing a valuable survival manual. Per findings of two studies performed under the given economically intense conditions, it is evidenced that the right answer to survival rests upon: (a) the entrepreneurs' personality traits and skills that affect the market and entrepreneurial orientations of SMEs, (b) the adoption of such orientations that keep impacting the firms' performance, and finally (c) the implementation of strategy relevant to reaching higher quality standards for products and services, combined with tactics relevant to downsizing, marketing actions, extroversion, and financial management.

Cost of dementia and the relationship between stage of dementia and cost of care in Greece

Objective The current study attempts to estimate the cost of dementia in relation to the severity of the disease in Greece. Methods A prospective observational study was conducted in Tripoli, Arcadia at the neurological clinic of a secondary hospital. The study included 110 patients and their main caregivers. The total cost of dementia has been calculated as well as its allocation to private and public funding. The results were correlated with three stages of disease severity (mild–moderate–severe) with a multivariate regression model. Results The average total cost of caring for dementia is €819.89 per month: €710.60 of this is the private cost and €109.29 is the public cost. The cost is positively correlated statistically with the progress of the disease in the three stages of severity. Conclusions The cost of caring for people with dementia in the authors' research appears lower than that in developed Western societies and in relation to other developing societies. The Greek economic crisis seems to be a determining factor in this result. However, it is still a high cost, which is mainly paid by the patient and the family.

Greek Economic Crisis and Changes in HR Management The Case of Greek Structural Design Engineers

Nowadays the modern business operates in an ever-changing environment that is strongly influenced by technological, political, social, economic and scientific developments. Its future and success are based on its ability to manage properly and to develop its human resources that are the most important and at the same time the most difficult resource.Because of the economic crisis that started on 2008 the work environment worldwide changed in a great number of organizations. This sudden change of organization generated new topics in the field of organizations. Leadership and motivation in the workplace are two of them.The current work paper focuses on the in-depth analysis of a small group of employees (qualitative research) in a workplace with a strong influence from the Greek economic crisis, although in the last years was one of the main sectors of the economy.In the first part is presented the social and working face of Greece, the timeline of Greek crisis and its consequences. An empirical research conducted within the changing environmenent, its results, conclusions and recommendations complete the current paper. The outcome highlights the need of Great leadership, communication and inside motivation within the economic crisis environment.

Impact of Economic Crisis on Passenger Transportation – Case of Travelling to the Greek Mainland from Crete

The Greek economic crisis of 2009 onwards has affected all aspects of social and economic life of the country, including transportation. The present study focuses on the impact of economic crisis on the long distance transportation between the island of Crete in Greece, the largest Greek island and one of the largest in the Mediterranean Sea, and the Greek mainland. A questionnaire survey was used to investigate the opinions of the Cretans on the way the economic crisis influenced their transportation to the Greek mainland. The results of the survey show that the frequency of the Cretans’ travels was significantly limited, owing to the increased direct or indirect associated cost, due to the economic crisis. Especially for those who struggled to make ends meet, the transportation to the mainland dropped to the bare essentials. Furthermore, the respondents deemed that the deregulation of the Greek maritime and airline markets was also to blame for the high fares, thus they favoured a regulated public transport sector and were against privatization. Inevitably, financially vulnerable individuals were the most preoccupied with these issues. A feeling of isolation and exclusion was revealed by the sample on occasions when the scheduled trips were cancelled by the operators due to exogenous parameters.

The impact of leadership on firm financial performance: the mediating role of employees' readiness to change

PurposeThe aim of the research is to investigate the influence of leadership on firm financial performance and to explore the mediating role of employees' readiness to change.Design/methodology/approachThe paper hypothesizes that employees' readiness to change mediates the relationship between leadership and firm financial performance. A total of 213 employees of Greek shipping firms completed questionnaires examining their firms' leadership style and concurrently, their supervisors appraised their readiness to change. The research model was tested with the use of Structural Equation Modelling.FindingsThe research findings note the importance of leadership in fostering firm financial performance; they describe how each leadership style influences employees' readiness to change; as well as, they confirm that employee readiness mediates the relationship between leadership and firm financial performance. Theoretical and practical implications of these findings are analysed.Research limitations/implicationsGiven that the research was conducted during the severe Greek economic crisis, a time when employees' behaviour is highly influenced by distinctive and complex internal and external relationships, there is scope for further work to verify that the relationships identified in this study remain valid during periods when market conditions are more favourable.Practical implicationsThe findings provide further support on the significance of employees' readiness to change and the paper suggests policies for its development.Originality/valueThe originality of this study lies in the finding that employees' readiness to change mediates the relationship between leadership and firm financial performance. Further, the study was carried out in Greek shipping industry that plays a vital role in the international shipping industry which is responsible for the carriage of around 90% of world trade.

A Six Year Travelogue in Anger, Anxiety, Depression and Curiosity

The new austerity measures in Greece which started in 2011, formed a strong public reaction, followed by emotions of anxiety and anger. Since anxiety, anger, and depression are important indicators of psychological distress the financial crisis was hypothesized, as potentially having had important psychological impact on the Greek public. In this paper we present the results of anger, anxiety, curiosity and depression scores distributed over a six years period during the Greek economic crisis (2011-2016). As a measurement tool we used self-administered STPI (State-Trait Personality Inventory), which includes eighty questions designed to measure transitory and dispositional anger, anxiety, curiosity and depression in a four-level Likert scale. Our results showed a scalar increase of the anger scores thus imprinting the high or very high levels of emotional reactions during the years of the Greek financial crisis. Furthermore, significant correlations between anger and stress as well as between stress and depression were observed, showing the high affinity between these emotional traits.

Commercial diplomacy as a mechanism for passive-reactive SME internationalisation: overcoming liabilities of outsidership

This study contributes to SME internationalization literature by conceptualizing commercial diplomacy (CD) as a mechanism, which enables SME internationalization. Specifically, CD provides solutions to remedy for SMEs’ liabilities of outsidership when those SMEs are compelled to internationalize under conditions of abrupt environmental shock in their domestic market. Using the Greek economic crisis triggered in 2008 as a research setting, we examine a situation in which established SMEs previously apathetic to internationalization had to assume the risks of internationalizing or face extinction. With data generated through 35 open-ended semi-structured interviews of commercial diplomats between 2013 and 2017, we conceptualize and empirically validate CD as a missing link in staged and networkrevised theories of internationalization. In doing so, this paper overcomes the current inability of extant SME internationalization literature to account for forced internationalization of established SMEs as a reaction to environmental shocks in which building networks is unfeasible and accessing established networks requires time that these firms do not have.

For the People, Against the Elites: Left versus Right-Wing Populism in Greece and Turkey

ABSTRACTWhile the rise of populism has been a global trend in recent years, it has been prevalent in Greece and Turkey for longer, leaving a strong imprint on the politics of both countries. Left-wing populism has become one of the constitutive elements of the Greek political party system since the collapse of the 1967–1974 military regime. The 2009 outbreak of the Greek economic crisis set the stage for the radicalization of Greek politics through the rise of extremist far-right and far-left populist parties that professed populist agendas of different hues. Such populists accused old-party personnel of being members of a “treacherous elite” that sacrificed Greek national interests against foreign powers. The 2011 “indignados” movement is key for the better understanding of the social dynamics that facilitated the rise of the unusual SYRIZA-ANEL coalition government. Debates on Greek constitutional reform also highlighted the relevance of populism, especially as the SYRIZA-ANEL government sought topics to resonate with its disenchanted voters. On the other hand, a right-wing populist rhetoric has been one of the key instruments for the rise of Turkish political Islam and the establishment of the AKP hegemony in Turkey. Establishing a Kulturkampf-based narrative about the “secularist, ‘white-Turk’ elites” versus the “conservative, ‘black-Turk’ people” was of great political significance. The constitutional reform process proved again crucial for manifesting the relevance of populism in Turkish political discourse. This article explores the circumstances under which left- and right-wing populism have emerged into a dominant feature of Greek and Turkish politics. It also discusses the decreasing relevance of the established left-right political divide in party politics and suggests alternative classifications.