Causes of the global financial crisis: Learning from the competing insights

Abstract

Peter Yeohis a law researcher and fi nancial law services lecturer. He holds multiple postgraduate degrees in economics, management and law from various UK universities. His research interests focus on corporate law, corporate governance and banking and fi nancial services law. Yeoh has published in several journals relating to fi nance and law. He has previous work experience at senior levels in the fi nancial services sector.ABSTRACT Sub-prime mortgages in the United States appear to have triggered the current global fi nancial crisis. The crisis appears to be the combined result of adverse macro-economic conditions, bad corporate governance and loose regulatory oversight. Consequently, current views of the crisis differ primarily on the emphasis they attach to each of these perspectives, and tend to include other insights as contributing causes. This article, however, supports the view that fl awed governance practices in both the public and private sector are largely responsible for the fi nancial catastrophe. It also argues that the current tendency to blame it on the United States is overplayed and that bad governance practices are a global phenomenon. The article relies on secondary data analysis and observations of relevant banking practices to support this contention.

Governança corporativa e desempenho das empresas diante da crise econômica global de 2008: uma análise de dados em painel

“…No entanto, os primeiros efeitos da crise sobre a economia brasileira passaram a ser efetivamente percebidos a partir de setembro de 2008, com o anúncio da falência do banco de investimento norte-americano Lehman Brothers, que provocou pânico no mercado financeiro internacional e valorização da moeda norte-americana. A literatura recente sobre governança corporativa (GC) sugere, contudo, que, além das causas micro e macroeconômicas para a crise, falhas graves nas estruturas de GC públicas e privadas contribuíram para o agravamento da recessão (KIRKPATRICK, 2009;YEOH, 2010;ROSS;CROSSAN, 2012;Stiglbauer;Fisher;Velte, 2012;RINGE, 2013).…”

“…A despeito desse aspecto positivo, diversos estudos, no entanto, argumentam que falhas nos mecanismos de GC em empresas públicas e privadas contribuíram para o agravamento da crise econômica de 2008 (KIRKPATRICK, 2009;YEOH, 2010). Portanto, este trabalho pretende avançar com a compreensão da relação entre a GC, o desempenho e a crise econômica de 2008.…”

Corporate Governance and Risk Management: Lessons (Not) Learnt from the Financial Crisis

“…The global financial crisis of 2007-2008 was subject to many different research and studies from scholars, practitioners, institutions, governments. Especially the causes of the global financial crisis were of high interest (Clarke 2010;Laeven et al 2010;Lang and Jagtiani 2010;Tarraf 2010; United Nations Conference on Trade and Development 2010;Yeoh 2010). Many researchers and scholars see the main reason for the final collapse of financial institutions and the financial crisis-these collapses led to the global financial crisis as a triggering event-in the deficiencies in corporate governance, as well as in risk management and internal control systems.…”

“…Many researchers and scholars see the main reason for the final collapse of financial institutions and the financial crisis-these collapses led to the global financial crisis as a triggering event-in the deficiencies in corporate governance, as well as in risk management and internal control systems. Other reasons are rather supplementary to those deficiencies or probably also resulting from them (Kirkpatrick 2009;Yeoh 2010;Fetisov 2009). Before the financial crisis 2007-2008, there was a broad interest in corporate governance, and there were already some studies about it, e.g., about the board efficiency (Band 1992).…”

Evaluation of a perceived organisational performance scale using Rasch model analysis

“…Organisational performance has recently been described as the ultimate phenomenon of interest in management and business research (Richard et al, 2009). Heightened awareness of corporate governance matters and recent events such as the collapse of the US banking system in September 2008 and the ensuing global financial crisis have also led to increasing pressure for effective monitoring and measurement of organisational performance (Cascio and Boudreau, 2008;Kanter, 2009;Yeoh, 2010). The importance of organisational performance as an outcome variable in management research is reflected in the wide range of studies in this field, both in Australia and overseas (see, for example, Lee et al, 2009;Welch, 2003).…”