On factors explaining the 2008 financial crisis

Acosta-González, Eduardo; Rodríguez, Fernando Fernández; Sosvilla‐Rivero, Simón

doi:10.1016/j.econlet.2011.11.038

Cited by 22 publications

(10 citation statements)

References 7 publications

(8 reference statements)

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“…The financial sector map is changing, partly due to the current crisis that has brought out some of the bad practices that some banks have been using for years (Acosta‐González et al ., ): sub‐prime loans, lack of control, politicised boards of directors and risky investments. Thus, the market's distrust of financial services could explain GRI adoption as a means of gaining trust and developing closer relations with the sector's main stakeholders (Callan and Thomas, ).…”

Section: Resultsmentioning

confidence: 99%

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A Closer Look at the ‘Global Reporting Initiative’ Sustainability Reporting as a Tool to Implement Environmental and Social Policies: A Worldwide Sector Analysis

Alonso‐Almeida

Llach

Marimón

2013

Corp Soc Responsibility Env

209

133

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This study analyses the worldwide diffusion of the Global Reporting Initiative's (GRI) Sustainability Report in all economic sectors from 1999 to 2011. The logistic curve model (s-shaped curve) is used to assess the current situation on both a global scale and a local scale. Additionally, instability and concentration indices are used to analyse whether the diffusion process developed in a homogeneous manner across economic sectors. Although for different reasons, close attention has been paid to the two leading sectors worldwide: the financial and energy sectors. Findings suggest that the energy sector has adopted GRI reporting in an effort to be more sustainable as it is more visible, polluting, and international. On the other hand, the financial sector could regain market credibility and attract new investors, and GRI reporting could help it to construct a new identity defined by legitimate behaviours and an improved image. The paper concludes with some reflections on the usefulness of these reports and trends.

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Section: Resultsmentioning

confidence: 99%

“…() asserted that GRI diffusion had reached a level of 59.5 % worldwide. This finding indicates the importance of this sector and the need to observe its behaviour (Acosta‐González et al ., ). According to Marimon et al .…”

Section: Methodsmentioning

confidence: 99%

A Closer Look at the ‘Global Reporting Initiative’ Sustainability Reporting as a Tool to Implement Environmental and Social Policies: A Worldwide Sector Analysis

Alonso‐Almeida

Llach

Marimón

2013

Corp Soc Responsibility Env

209

133

View full text Add to dashboard Cite

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“…According to Acosta‐Gonzalez et al. (), the credit to GDP ratio is a good predictor of cross‐national differences in the severity of the recent crisis. ECON GROWTH 01‐06 = Average growth rate of real GDP in percent in 2001–2006. Rapid growth before the outbreak of the crisis may have been a sign of over‐heating.…”

Section: Datamentioning

confidence: 99%

Do Bailouts Cause Moral Hazards or Franchise Value in Banking?

Kauko

2014

Kyklos

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Summary Governmental safety nets are said to be a major source of moral hazard in banking. If profits are private but losses are borne by taxpayers, banks have perverted incentives to take excessive risks. Cordella and Levy Yeyati (2003) presented an opposing hypothesis. Safety nets offered during turbulent times help banks to survive and may increase banks' franchise value. This induces stronger risk aversion. This unorthodox hypothesis is tested with a cross‐national comparison. National banking crises in 1981–2003 were handled by national authorities in different ways, and countries may have built reputations as tough or generous crisis managers. The recent financial crisis was less severe in countries where the government had offered blanket guarantees in previous crises, which may be interpreted as a sign of stronger risk aversion during the pre‐2007 build‐up phase. Moreover, losses suffered by depositors in past crises made the recent crisis worse. These findings are consistent with the franchise value hypothesis but in strict contradiction with the mainstream moral hazard argumentation. The finding is politically unpopular and based on relatively few observations, but it is statistically significant and robust to the inclusion of numerous control variables.

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“…There are different strategies for finding a solution in SR. Koza (1992) proposed applying GP to implement SR in order to empirically assess the exchange equation. In spite of its versatility, GP applications in economics are still few (Álvarez-Díaz and Álvarez, 2005;Acosta-González et al, 2012).…”

Section: Introductionmentioning

confidence: 99%