Greed, financial innovation or laxity of regulation?

Mazumder, M. Imtiaz; Ahmad, Nazneen

doi:10.1108/10867371011048616

Cited by 25 publications

(3 citation statements)

References 50 publications

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“…Furthermore, (Syriopoulos et al 2015) examined the volatility spill-over among BRICS (Jin and An 2016) and emerging markets during the financial crisis. Mazumder and Ahmad (2010) examined the root causes of the US stock market volatility, mortgage and liquidity crises, and their consequences on the global economy from 2007 to 2009.…”

Section: Financial Crisis 2008 and Stock Market Volatilitymentioning

confidence: 99%

Market Shocks and Stock Volatility: Evidence from Emerging and Developed Markets

Tabash,

Chalissery,

Nishad

et al. 2024

IJFS

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Market turbulences and their impact on the financial market, particularly on the stock market, is a financial topic that has received significant research attention recently. This study compared the characteristics of stock return and volatility in selected developed and emerging markets between the 2008 financial crisis and the 2019 worldwide pandemic. In this sense, we seek to answer two concerns. First, do the developed and emerging markets behave similarly during crisis periods? Second, does economic strength always shield markets from poor economic circumstances? For this purpose, the daily return data of E7 (Emerging 7) and G7 (Developed 7) countries for two sample periods—namely, the financial crisis period of 2007–2009 and the global pandemic period of 2019–2021—were chosen. By using univariate GARCH models, namely GARCH, EGARCH, and TGARCH, the study discovered that developing and developed markets reacted differently to these two financial crises. While emerging markets responded similarly to these two crises, developed economies acted differently, being more volatile and sensitive to the worldwide pandemic of 2019 than the financial crisis of 2008. Moreover, a country’s economic prowess does not always shield it from economic turmoil. This study will help investors identify diversification opportunities among the developed and emerging markets during a crisis period. Additionally, this will help portfolio and fund managers understand the behaviour of stock markets during times of market crisis and thus give advice to investors.

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Section: Financial Crisis 2008 and Stock Market Volatilitymentioning

confidence: 99%

Market Shocks and Stock Volatility: Evidence from Emerging and Developed Markets

Tabash,

Chalissery,

Nishad

et al. 2024

IJFS

View full text Add to dashboard Cite

show abstract

“…A number of factors have been blamed for causing or at least exacerbating the 2007-8 financial crisis (e.g., Bresser-Pereira 2010; Brösel, Toll, and Zimmermann 2012;Dowd 2009;Mazumder and Ahmad 2010;Nielsen 2010;Smith 2010). Most certainly the 2007-8 crisis was not monocausal, but it was a prototypical recession preceded by an artificial boom which had been induced by expansionary monetary policy in the early 2000s in response to the bursting of the dot-com bubble (Woods 2009).…”

Section: Fair Value Accounting In the Boom Phase Of The Business Cyclementioning

confidence: 99%

On the Ethics of Fair Value Accounting: Distributive Effects, Distributive Injustice, and Implications for Social Peace

Rapp,

Herbener,

Gordon

2024

Quarterly Journal of Austrian Economics

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Fair value accounting is at the heart of arguably the world’s most prominent accounting standards, particularly US GAAP and IFRS. Fair value measurement has been the subject of intense debate. Among other things, it has been analyzed from an ethical perspective. However, this discussion has mainly been limited to the judgment involved in fair value measurement and the ethics of fair value in its ability to provide decision-useful information to interested parties. This study pushes the boundaries by adding a new dimension to the discussion of the ethics of fair value accounting by examining its ethics from a more systemic and societal perspective. Drawing on Austrian business cycle theory, it argues that fair value accounting facilitates certain distributive effects in inflationary monetary environments, thereby contributing to distributive injustice and potentially to social discord. In this respect, fair value accounting—in contrast to historical cost accounting—should not be considered fair or just, but unethical instead.

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“…Risk management came into the field of high interest because of the biggest worldwide financial crisis in the 1930s due to a lack of guidance and supervision in lending money for home mortgages (Brunnermeier, 2009). It seemed that the policy of giving mortgages under very mild conditions and at very low initial interest rates led to this disastrous situation of extreme increase of credit defaults especially in the USA real estate market (Mazumder & Ahmad, 2010).…”

Section: Introductionmentioning

confidence: 99%

Two Approaches to Examine the Impact of Different Credit Default Indicators on Real Estate Loans

Pfalz

2019

Baltic Journal of Real Estate Economics and Construction Management

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Financing of real estates was a trigger of the largest financial crisis after the “Great Depression” from the early thirties in the last century. One of the main causes of this 2007 crisis was poor risk management in real estate financing. The aim of this paper is to examine the impact of different classes of indicators on credit default rates of real estate loans. Two research approaches should confirm a model that proves how strong the relationship is between different predictor variables such as interest rates, macroeconomic and individual indicators on the response variable of credit defaults. The first approach focuses on conducting descriptive and inferential experimental research by collecting secondary data in different markets and by analysing these data for correlations and linear regressions. The second approach is an expert survey of different banks to compare and complement the results of the first research approach. The research provides the evidence that individual indicators and macroeconomic indicators have a higher impact on credit defaults than interest rates. The scientific research on this theme has led to nearly the same results in different markets: the unemployment rate and thus personal conditions are the most responsible predictors for the credit defaults, also in different markets. The novelty of the present research is the proof that a banking survey with primary data on the causes of credit defaults confirms and complements the results of the secondary data analysis.

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Greed, financial innovation or laxity of regulation?

Cited by 25 publications

References 50 publications

Market Shocks and Stock Volatility: Evidence from Emerging and Developed Markets

Market Shocks and Stock Volatility: Evidence from Emerging and Developed Markets

On the Ethics of Fair Value Accounting: Distributive Effects, Distributive Injustice, and Implications for Social Peace

Two Approaches to Examine the Impact of Different Credit Default Indicators on Real Estate Loans

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