Against the background of the great financial crisis, this paper assesses the merits of bank-based versus market-based financing by exploring the relationship between financial structure and systemic ...risk. The findings indicate that bank-based financial structures are associated with higher systemic risk than market-based financial structures. In relatively bank-based financial structures, bank financing is found to increase systemic risk while market financing decreases systemic risk. By contrast, in relatively market-based financial structures, bank and market financing do not impact systemic risk. Together, the results signal that market-based financial structures are more resilient to systemic risk.
This study investigates if the Nigerian capital market is more effective in impacting economic growth compared with the money market. The paper uses a growth model that depend on usual labour and ...capital, as well as incorporates the money and capital market variables to produce outputs. The study uses data from the Central Bank of Nigerian and Securities and Exchange Commission Bulletins between from 1981 and 2020. The paper finds the existence of a long-run link amidst the money market, capital market and growth. In the short- and long run, the capital market (new issue) shows positive and significant effects on growth, whilst the money market indicator (treasury bills) has a negative and significant effects. The growth elasticity with respect to the new issue of 0.27% is highly significant at 1%. The growth elasticity with respect to the traded shares of 0.06% is significant at 5%. The growth elasticity with respect to treasury bill of 0.08% is only significant at 10%. The positive impact of the capital market was found to outweigh that of money market. This supports the efficiency of capital market over the money market for growth financing. The paper recommends that the government should ensure it extends the on-going market reforms to increase the sophistication of the financial market and make it more globally competitive.
The objective of the paper is to present the possibilities of financing the development of companies in the pharmaceutical, biotechnological, and medical sectors through the capital market. The ...trading prices of selected companies on the Polish stock exchanges (NewConnect and WSE) are discussed. Furthermore, the work analyzes the evolution of the WSE in the years 2007–2015 with a particular focus on the trading volumes and the maximum and minimum prices of the stocks of selected biotechnological and medical companies between January 2015 and April 2016. Using DbNotowania software from Statica, the selected companies were analyzed visually to identify abnormal price changes. Data were obtained from the at-skaner.pl database, normalized, and imported to Microsoft Access for more detailed analysis. It was concluded that the WSE may play a more prominent role in the development of innovative biotechnological, pharmaceutical, and medical companies if the changes recommended in this paper are implemented. Given the tendency towards capital market consolidation, it is logical that following an IPO on less liquid markets, companies will gradually try to transition to the more liquid ones. It would be advisable for small innovative companies to attract the attention of recommendation-issuing companies such as Edison Investment Research. The government should encourage individual and institutional investors to participate and finance the Polish capital market by appropriate regulations and tax exemptions.
We examine asymmetries in the impact of monetary policy surprises on stock returns between bull and bear markets in the period 1994 to 2005. We ask how these impacts respond to the relative ability ...of firms to obtain external finance. We find that the impact of a surprise monetary policy in a bear market is large, negative, and statistically significant, and this holds across size decile portfolios. The impact of a surprise policy action in a bear market for most industries is significantly greater than the impact of surprise monetary policy in a bull market. Controlling for the capacity for external finance, stock returns of firms in bear states respond more than firms in bull states. Capacity for external finance is more important in a bear market, as it partially mitigates the larger impact of monetary policy in a bear market.
Strict connections of the real estate market with the financial market are an unquestionable phenomenon at every level of investing, starting from the lowest individual investor, and finishing with ...national and transnational players. One of the more interesting examples of such a dependency is the problem of the risk of financing the real estate market, which results from numerous macro-, mezo- and microeconomic conditions, including,
, the phenomenon of capital migration, supranational bank regulations or the development of currency exchange rates on world markets. The most recent example of such a dependency is, among others, the decision of the National Bank of Switzerland from the beginning of 2015 to abandon the Swiss franc-euro cap, which will go down in the history of the world financial market. Its global effects will surely be very difficult to assess, while the resulting turbulences and consequences for many (institutional, corporation and individual) market participants cause, on the one hand, awaiting a reaction and actions aimed at helping entities affected by the consequences of the mentioned decision and, on the other, many questions and doubts.
The paper will present current selected aspects concerning currency risk in the context of financing the residential real estate market and the directions of actions prepared in reaction to the abovementioned risk. Polish conditions will be presented against the background of examples of foreign solutions.
The aim of the work is to present:
The method employed was the critical analysis of the most-recent reports and recommendations of the National Bank of Poland, Polish Financial Supervision Authority, Polish Banking Union, and other experts on the subject of financing the real estate market, as well as a comparative analysis of solutions regarding currency risk in selected countries.
This paper is concerned with the innovation financing policies for entrepreneurial development of Singapore and Taiwan, the first tier countries/newly industrializing economies (NIEs) in Asia. In ...particular, the study focuses on the venture capital and capital market funding policies. The study has shown that the government intervention model is successful in Singapore and Taiwan as a result of having clear cut agencies responsible for carrying out policy implementation. Both countries also have stock markets for high-tech industries with flexible market-entry regulations to support technology development. The study offers empirical reasons on effective innovation financing policies to support the national economic development.
Real estate market can be thought of as an open, dynamic system. It means that it is able to exchange stimuli with other open systems, and that its state evolves in a way that might be described ...mathematically. It turns out that two main processes contribute to the overall evolution of the real estate market: long-term, predictable evolution, interrupted by sharp changes of catastrophic origin. In this picture, national housing funds play an important role in supporting the housing finance: on one hand they could either stimulate or suppress the real estate market influencing the availability of the mortgage credit, but on the other hand, they could also help to stabilize prices. In this study, an attempt was made to determine the degree of relationship between the volume of mortgage financing from national housing funds and the dynamics of real estate prices.
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