The purpose of the present study is to identify the factors affecting the
non-performing loans rate (NPL) of Eurozone?s banking systems for the period
2000-2008, just before the beginning of the recession. In our days, Eurozone
is in the middle of an unprecedented financial crisis, calling into question
the soundness of the banking systems of European countries. Looking at both
macro-variables (e.g. annual percentage growth rate of gross domestic
product, public debt as % of gross domestic product, unemployment) and
micro-variables (e.g. loans to deposits ratio, return on assets, return on
equity), we investigate which factors determine NPL on aggregate level.
Overall, our findings reveal strong correlations between NPL and various
macroeconomic (public debt, unemployment, annual percentage growth rate of
gross domestic product) and bank-specific (capital adequacy ratio, rate of
nonperforming loans of the previous year and return on equity) factors.
Recent researches have worked on the relationship between Corporate Governance and expected rates on return as well as historical returns. Firstly, we construct an Index of Corporate Governance (CGQL) that measures the quality implementation of Corporate Governance of the enlisted firms on the Athens Stock Exchange distinguishing the firms into Democracies and Dictatorships. An investment strategy that buys Democracies and shorts Dictatorships earns abnormal returns of around 18% annually during the sample period. In this paper we investigate if Corporate Governance matters in investors' decisions. We try to observe if Corporate Governance is a proxy for firm valuation, a factor of creating and altering abnormal returns, or a risk factor, which can be a "substitute" for market risk (beta), using uni-and multi-variate analyses. The conclusions call into question the utility of Corporate Governance upon firm attractiveness.
This paper views the organization as an open political system. The way that organizations are structured makes inevitable the creation of sectional interests and differentiates the understanding of organizational goals. Decision-making is viewed as a power game between competing interest groups over the control of organizational resources. Power relations are generated and power is accumulated to the divisions that have control of scarce organizational resources or to those who cope most successfully with uncertainty. Accounting information is used as an argument that justifies demands from organizational actors or for the rationalization of decisions made.
This article analyses the effects of Selective Credit Policies (S.C.P.s), pursued by greek monetary authorities over the period 1968-1987, on industrial business behaviour. Selective Credit Policies comprise the exogenous determination of the volume and structure of bank lending, as well as of the levels and term structure of interest rates. Business behavior as reflected in decisions affecting investment in plant and equipment, on the one hand, and liquid assets, on the other. Liquid assets include inventories, credit to customers and cash accounts.The conclusion of this study is that the S.C.P.s, although might have played some positive role in channeling long-term funds to industrial firms, they did not succeed in making any considerable contribution to capital asset formation. Conversely, the impact of investment inducing fiscal policies was proved to much stronger. Additionally, the combination of centrally administered nominal interest rates and high inflation rates that prevailed in the period under review, seriously limited any success of S.C.P.s in achieving the goals of promotion investment activity and the growth of industrial output.
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