Organizational research has long been interested in crises and crisis management. Whether focused on crisis antecedents, outcomes, or managing a crisis, research has revealed a number of important ...findings. However, research in this space remains fragmented, making it difficult for scholars to understand the literature’s core conclusions, recognize unsolved problems, and navigate paths forward. To address these issues, we propose an integrative framework of crises and crisis management that draws from research in strategy, organizational theory, and organizational behavior as well as from research in public relations and corporate communication. We identify two primary perspectives in the literature, one focused on the internal dynamics of a crisis and one focused on managing external stakeholders. We review core concepts from each perspective and highlight the commonalities that exist between them. Finally, we use our integrative framework to propose future research directions for scholars interested in crises and crisis management.
The first crash Dale, Richard
2004., 20140424, 2014, 2004, 2005-01-01
eBook
For nearly three centuries the spectacular rise and fall of the South Sea Company has gripped the public imagination as the most graphic warning to investors of the dangers of unbridled speculation. ...Yet history repeats itself and the same elemental forces that drove up the price of South Sea shares to dizzying heights in 1720 have in recent years produced the global crash of 1987, the Japanese stock market bubble of the 1980s/90s, and the international dot.com boom of the 1990s.
The First Crashthrows light on the current debate about investor rationality by re-examining the story of the South Sea Bubble from the standpoint of investors and commentators during and preceding the fateful Bubble year. In absorbing prose, Richard Dale describes the trading techniques of London's Exchange Alley (which included 'modern' transactions such as derivatives) and uses new data, as well as the hitherto neglected writings of a brilliant contemporary financial analyst, to show how investors lost their bearings during the Bubble period in much the same way as during the dot.com boom.
The events of 1720, as presented here, offer insights into the nature of financial markets that, being independent of place and time, deserve to be considered by today's investors everywhere. This book is therefore aimed at all those with an interest in the behavior of stock markets.
What makes a well-functioning governmental crisis management system, and how can this be studied using an organization theory–based approach? A core argument is that such a system needs both ...governance capacity and governance legitimacy. Organizational arrangements as well as the legitimacy of government authorities will affect crisis management performance. A central argument is that both structural features and cultural context matter, as does the nature of the crisis. Is it a transboundary crisis? How unique is it, and how much uncertainty is associated with it? The arguments are substantiated with empirical examples and supported by a literature synthesis, focusing on public administration research. A main conclusion is that there is no optimal formula for harmonizing competing interests and tensions or for overcoming uncertainty and ambiguous government structures. Flexibility and adaptation are key assets, which are constrained by the political, administrative, and situational context. Furthermore, a future research agenda is indicated.
As the world's political and economic leaders struggle with the aftermath of the Financial Debacle of 2008, this book asks the question: have financial crises presented opportunities to rebuild the ...financial system? Examining eight global financial crises since the late nineteenth century, this new historical study offers insights into how the financial landscape - banks, governance, regulation, international cooperation, and balance of power - has been (or failed to be) reshaped after a systemic shock. It includes careful consideration of the Great Depression of the 1930s, the only experience of comparable moment to the recession of the early twenty-first century, yet also marked in its differences. Taking into account not only the economic and business aspects of financial crises, but also their political and socio-cultural dimensions, the book highlights both their idiosyncrasies and common features, and assesses their impact in the broader context of long-term historical development. Available in OSO: http://www.oxfordscholarship.com/oso/public/content/management/9780199600861/toc.html
We study how relationship lending and transaction lending vary over the business cycle. We develop a model in which relationship banks gather information on their borrowers, allowing them to provide ...loans to profitable firms during a crisis. Because of the services they provide, operating costs of relationship banks are higher than those of transaction banks. Relationship banks charge a higher intermediation spread in normal times, but offer continuation lending at more favourable terms than transaction banks to profitable firms in a crisis. Using credit register information for Italian banks before and after the Lehman Brothers' default, we test the theoretical predictions of the model.
Guaranteed to fail Acharya, Viral V; Acharya, Viral V; Richardson, Mat Thew ...
2011., 20110314, 2011, 2011-03-14, 20110101
eBook
The financial collapse of Fannie Mae and Freddie Mac in 2008 led to one of the most sweeping government interventions in private financial markets in history. The bailout has already cost American ...taxpayers close to
This paper selectively reviews some of the research on fire sales, emphasizing both concepts and supporting evidence. It begins by describing the 1992 model of fire sales and the related findings in ...empirical corporate finance. It then shows that models of fire sales can account for several related phenomena during the recent financial crisis, including the contraction of the banking system and the failures of arbitrage in financial markets exemplified by historically unprecedented differences in prices of very similar securities. This paper then links fire sales to macroeconomics by discussing how such dislocations of security prices and the reduction in balance sheets of banks can reduce investment and output. Finally, this paper considers how the concept of fire sales can help everyone think about government interventions in financial markets, including the evidently successful Federal Reserve interventions in 2009.
Guardians of Finance Barth, James R; Caprio, Gerard; Levine, Ross
02/2012, Volume:
1
eBook, Book
The recent financial crisis was an accident, a "perfect storm" fueled by an unforeseeable confluence of events that unfortunately combined to bring down the global financial systems. Or at least this ...is the story told and retold by a chorus of luminaries that includes Timothy Geithner, Henry Paulson, Robert Rubin, Ben Bernanke, and Alan Greenspan. InGuardians of Finance, economists James Barth, Gerard Caprio, and Ross Levine argue that the financial meltdown of 2007 to 2009 was no accident; it was negligent homicide. They show that senior regulatory officials around the world knew or should have known that their policies were destabilizing the global financial system and yet chose not to act until the crisis had fully emerged.Barth, Caprio, and Levine propose a reform to counter this systemic failure: the establishment of a "Sentinel" to provide an informed, expert, and independent assessment of financial regulation. Its sole power would be to demand information and to evaluate it from the perspective of the public--rather than that of the financial industry, the regulators, or politicians.
This is a unique insider account of the new world of unfettered finance. The author, an Asian regulator, examines how old mindsets, market fundamentalism, loose monetary policy, carry trade, lax ...supervision, greed, cronyism, and financial engineering caused both the Asian crisis of the late 1990s and the global crisis of 2008–9. This book shows how the Japanese zero interest rate policy to fight deflation helped create the carry trade that generated bubbles in Asia whose effects brought Asian economies down. The study's main purpose is to demonstrate that global finance is so interlinked and interactive that our current tools and institutional structure to deal with critical episodes are completely outdated. The book explains how current financial policies and regulation failed to deal with a global bubble and makes recommendations on what must change.
This paper presents a new database on the timing of systemic banking crises and policy responses to resolve them. The database covers the universe of systemic banking crises for the period 1970-2007, ...with detailed data on crisis containment and resolution policies for 42 crisis episodes, and also includes data on the timing of currency crises and sovereign debt crises. The database extends and builds on the Caprio, Klingebiel, Laeven, and Noguera (2005) banking crisis database, and is the most complete and detailed database on banking crises to date.
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