This special issue of Organization treats cooperatives as alternative forms of business and organization, focusing on worker-owned-and-governed forms. In reviewing extant research and considering the ...seven articles in this special issue, we treat five main challenges that workers’ cooperatives face: (1) the organizational resources, structures, and dynamics allowing for social as well as economic resilience for worker cooperatives; (2) the complex types and roles of leadership in worker cooperatives and related organizational forms; (3) the capacity of and obstacles to the reinvention of democracy within cooperatives; (4) the relationships between cooperatives and organized labor, the state, the community, and the larger financial system; and (5) the pursuit of cooperative values and policies within international market and environmental contexts. The examination of these challenges in relation to the worker cooperatives specifically can inform new projects in employee ownership and governance as well as perhaps assist with democratic organizational transformations in other firms and sectors.
► The paper shows factors that contribute to systemic risk of financial institutions. ► We highlight how to improve the policies that contribute to financial stability. ► We demonstrate how the ...financial cycle could influence financial stability. ► Empirical results show the role of capital to a more resilient financial system.
This paper analyses various issues that need to be tackled when promoting financial stability, reviewing the progress made in certain key areas and the remaining challenges. It explores the measurement of systemic risk and of individual institutions’ contribution to it. It discusses aspects of macroprudential frameworks, including how the countercyclical capital buffer envisaged in Basel III takes into account the properties of the financial cycle and the strengths and weaknesses of macro-stress tests. It analyses some of the challenges of how best to monitor financial systems and the broader economy in order to detect signs of vulnerability that might lead to future bouts of financial instability and of how to set prudential policy accordingly. And it discusses the evolution of capital adequacy standards and the new emphasis on liquidity standards in international regulation.
The aim of this paper is to examine the role of gold in the global financial system. We test the hypothesis that gold represents a safe haven against stocks of major emerging and developing ...countries. A descriptive and econometric analysis for a sample spanning a 30
year period from 1979 to 2009 shows that gold is both a hedge and a safe haven for major European stock markets and the US but not for Australia, Canada, Japan and large emerging markets such as the BRIC countries. We also distinguish between a weak and strong form of the safe haven and argue that gold may act as a stabilizing force for the financial system by reducing losses in the face of extreme negative market shocks. Looking at specific crisis periods, we find that gold was a strong safe haven for most developed markets during the peak of the recent financial crisis.
This study empirically investigates the relationship between banks' green lending and their credit risk, and how Chinese green finance regulations contribute to the solvency of individual banks and ...the resilience of the financial system. Analysing a sample of 41 Chinese banks from 2007 to 2018, we find that the association between a bank's (relative) green lending as a proportion of its overall loan portfolio, and its credit risk, depends critically on the size and structure of state ownership. While the implementation of China's Green Credit Policy reduces credit risk for the major state‐controlled banks, it increases credit risk for the city and regional commercial banks. This performance difference appears largely due to information and expertise asymmetries, with the city and regional commercial banks having less access to information and expertise necessary to evaluate the credit risk of green lending. Understanding this phenomenon can help policymakers tailor green finance policies according to banks' characteristics. It also suggests that mechanisms and platforms for the city/regional commercial banks to learn from the major state‐controlled banks could be beneficial.
The geography of initial coin offerings Huang, Winifred; Meoli, Michele; Vismara, Silvio
Small business economics,
06/2020, Letnik:
55, Številka:
1
Journal Article
Recenzirano
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Initial coin offerings (ICOs) are a rapidly growing phenomenon wherein entrepreneurial ventures raise funds for the development of blockchain-based businesses. Although they have recently sprouted up ...all over the world, raising millions of dollars for earlystage firms, few empirical studies are available to help understand the emergence of ICOs across countries. Based on the population of 915 ICOs issued in 187 countries between January 2017 and March 2018, our study reveals that ICOs take place more frequently in countries with developed financial systems, public equity markets, and advanced digital technologies. The availability of investment-based crowdfunding platforms is also positively associated with the emergence of ICOs, while debt and private equity markets do not provide similar effects. Countries with ICO-friendly regulations have more ICOs, whereas tax regimes are not clearly related to ICOs.
The financial system needs to develop in order for natural resource exports to have a positive effect on economic growth. Yet, an advanced financial system is crucial for transferring the revenues ...from oil exports to productive investments. If the level of development of the financial system remains under a certain threshold, the effect of natural resource exports on economic growth is too low. In this vein, the determination of the level and the deepness of financial development that has a positive impact on the growth of natural resource exports should be clarified. The aim of this study is to investigate the relationship between the impact of natural resource exports on economic growth and the level of financial deepening by using the data of the selected Next-11 countries for the period of 1996–2016. Nonlinear panel data methodology is used in the study. Based on the empirical results, for the first regime, where the rate of financial deepening is under 45%, the increase in oil exports does not have a statistically significant effect on ecenomic growth. For the second regime, where financial deepening is over 45%, one unit increase in oil exports causes a 7% increase in economic growth.
•Impact of natural resource exports on economic growth and financial deepening of selected Next-11 countries for period 1996-2016.•The stationarity conditions of the series, the CIPS test (Cross Sectionally Augmented IPS), developed by Peasaran (2007).•For the first regime, the increase in oil exports does not have a statistically significant effect on ecenomic growth.•For the second regime, where financial deepening is above 45%, one unit increase in oil exports causes a 7% increase in economic growth.
Building on research that addresses why some financial systems are based on banks and others on markets, this study stresses that culturally-based social preferences regarding uncertainty avoidance ...help explain cross-national differences in financial system configuration. We propose a theory in which political institutions condition this relationship. National culture is a good predictor of financial systems as long as governments are constrained and therefore able to credibly commit to not interfering in the functioning of banks and markets. We adopt a strict definition of culture that focuses only on inherited dimensions, while postulating uncertainty avoidance as a proxy for the societal attitudes that channel those cultural priors. We find that in a political context with unconstrained government, national culture fails to explain financial system variation. In contrast, when political institutions limit governmental action, culturally-driven preferences for uncertainty avoidance affect significantly financial configuration.
This study conducted the econometric analysis to test the hedge and safe haven effects of Non-fungible Tokens (NFTs) on major traditional asset markets in the global financial system. We investigate ...the estimates of these effects in times of extreme market conditions and the COVID-19 crisis. Our empirical results show evidence of the hedge and safe haven properties of NFTs, confirming two main findings: (i) NFTs act as a hedge and safe haven for particular stock markets and oil, bond, and USD indices, even though the degree of effects varies across asset classes; and (ii) NFTs also serve as sheltering facilities for the markets mentioned above, with more substantial safe haven benefits for bond and USD indices during the recent pandemic crisis.
The main question we would like to address in this paper is as follows: Given a geometric Brownian motion (GBM) as the underlying stock price model, what is the cumulative distribution function (CDF) ...for the trading profit or loss, call it g(t), when an affine feedback control strategy with stop-loss order is considered? Moreover, is it possible to obtain a closed-form characterization for the desired CDF for g(t) so that a theoretician or practical trader might be benefited from it? The answers to these questions are affirmative. In this paper, we provide a closed-form expression for the cumulative distribution function for the trading profit or loss. In addition, we show that the affine feedback controller with stop-loss order indeed generalizes the result without stop order in the sense of distribution function. Some simulations and illustrative examples are also provided as supporting evidence of the theory.
This study aimed to analyse the monitoring adeptness of the financial system in China, particularly in controlling earnings management activities. First, this study identifies the reasons and ...motivations of managers for involvement in earnings management activities. Second, this study determines whether China's financial system has developed sufficiently to be capable of establishing a strong monitoring mechanism over firms. The study compares how an equity‐based financial structure develops an efficient monitoring system with that of a bank‐based one. A panel dataset of 2997 listed Chinese firms spanning the years 1998–2015 shows that the agency issue is the main reason that firms engage in earnings management activities. Management of financially constrained firms is found to be more prudent than management of other firms because they avoid masking firm performance. The study concludes that Chinese firms are restrained from indulging in managing earnings practices owing to the overwhelming development of the financial system. Moreover, firms in capital market‐based financial structures are more inclined to avoid earnings management compared with those in bank‐based structures.
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