Search results
1 – 10 of 39Jakob Thomä, Michael Hayne, Nikolaus Hagedorn, Clare Murray and Rebecca Grattage
To comply with the adopted Paris Agreement, global finance flows must be measured against climate scenarios consistent with possible pathways towards limiting global warming to…
Abstract
Purpose
To comply with the adopted Paris Agreement, global finance flows must be measured against climate scenarios consistent with possible pathways towards limiting global warming to 2°C or less. For this, there must be proven and accepted accounting principles for assessing financial plans of climate relevant actors against climate models. As there are a variety of data sources describing the financial plans of relevant actors, these principles must accommodate a variety of reported information, while still yielding relevant metrics to different stakeholders. The paper aims to discuss these issues.
Design/methodology/approach
A set of accounting principles tested by governments, financial supervisory bodies and both institutional investors and mangers, covering global-listed equity and corporate bond investment is described.
Findings
The application illustrates that a common set of accounting principles can act across both asset classes and provide relevant metrics to multiple stakeholders.
Research limitations/implications
The principles require data of varying quality and are ultimately unverified. Thus, the definitive quality of the output metrics is uncertain and is yet to be characterized. The principles are yet to be applied to the credit market as the information is seldom publicly available, but it too plays an important role in the required market transition and therefore must be incorporated into these guiding principles of analysis.
Practical implications
The principles allow for standardised assessment of financial flows of equity and corporate debt with global climate scenarios.
Originality/value
It illustrates the acceptance of a common set of accounting principles that is relevant across different actors and asset classes and summarizes the principles underlying the first climate finance scenario analyses.
Details
Keywords
Ming Qi, Danyang Shi, Shaoyi Feng, Pei Wang and Amuji Bridget Nnenna
In this paper, the authors use the balance sheet data to investigate the interconnectedness and risk contagion effects in China's banking sector. They firstly study the network…
Abstract
Purpose
In this paper, the authors use the balance sheet data to investigate the interconnectedness and risk contagion effects in China's banking sector. They firstly study the network structure and centrality of the interbank network. Then, they investigate how and to what extent the credit shock and liquidity shock can lead to the risk propagation in the banking network.
Design/methodology/approach
Referring to the theoretical framework by Haldane and May (2011), this paper uses the network topology theory to analyze the contagion mechanism of credit shock and liquidity shock. Centrality measures and log-log plot are used to evaluate the interconnectedness of China's banking network.
Findings
The network topology has shown clustering effects of large banks in China's financial network. If the Industrial and Commercial Bank of China (ICBC) is in distress, the credit shock has little impact on the Chinese banking sector. However, the liquidity shock has shown more substantial effects than that of the credit shock. The discount rate and the rollover ratio play significant roles in determining the contagion effects. If the credit shock and liquidity shock coincide, the contagion effects will be amplified.
Research limitations/implications
The results of this paper reveal the network structure of China's interbank market and the resilience of banking system to the adverse shock. The findings are valuable for regulators to make policies and supervise the systemic important banks.
Originality/value
The balance sheet data of different types of banks are used to construct a bilateral exposure matrix. Based on the matrix, this paper investigates the knock-on effects of credit shock triggered by the debt default in the interbank market, the knock-on effects of liquidity effects, which is featured by “fire sale” of bank assets, and the contagion effects of combined shocks.
Details
Keywords
Ebere Kalu, Chinwe Okoyeuzu, Angela Ukemenam and Augustine Ujunwa
We study the contemporaneous effects of US monetary policy normalization on African stock market using panel data from six African countries.
Abstract
Purpose
We study the contemporaneous effects of US monetary policy normalization on African stock market using panel data from six African countries.
Design/methodology/approach
Daily data from May 1, 2013 to December 31, 2018 were used in order to accommodate the announcement effects since the US monetary policy normalization announcement was made in May 2013, while the rate hike was in December 2015. The study used the FE, RE and PMG models.
Findings
The results revealed that US 10-year bond yield and Treasury bill rate shocks negatively affect stock prices in Africa. S$P500 shock positively affects African stock prices.The result revealed that the integration of African financial market to the global financial market is a major source of vulnerability. The finding that US Treasury bill rate is a major depressant of the African stock prices reveals the short-termism of foreign polio inflows into African economies.
Originality/value
We provide inexorably insight into the interplay of financial systems globally. It can be useful for the purposes of generalization in developing economies in the shape of African countries. More so, this study could be replicated in another economic bloc or region with the aim of further exposing the far-reaching spillover effects of the US monetary policy normalization.
Details
Keywords
This paper explores the role that the control system – understood as a set of financial and non-financial mechanisms – introduced by the Ministerial Decree of 15th February 1860…
Abstract
Purpose
This paper explores the role that the control system – understood as a set of financial and non-financial mechanisms – introduced by the Ministerial Decree of 15th February 1860 played in promoting the ethical tolerance of prostitution in the Kingdom of Italy.
Design/methodology/approach
A qualitative research method was adopted. Specifically, this study draws on literature on accounting and deviant behaviors and on Suchman's theories of legitimation (1995) to interpret empirical evidence collected from archival primary sources as well as secondary sources.
Findings
The paper highlights how the accounting mechanisms introduced by the law were molded to limit the serious consequences of prostitution from a public health standpoint and to demonstrate that the State neither profited from prostitution nor used public money to fund it. This should have stimulated ethical tolerance of the law itself and, consequently, of the prostitution that was regulated.
Originality/value
This paper opens a new research avenue in the field of accounting history by exploring the connection between accounting and prostitution. Moreover, unlike the extant literature on accounting and deviant behaviors, this study delves into the role played by accounting mechanisms to promote ethical tolerance rather than to activate normalization processes.
Details
Keywords
Cinzia Daraio, Gianpaolo Iazzolino, Domenico Laise, Ilda Maria Coniglio and Simone Di Leo
The purpose of this paper is to address the issue of knowledge visualization and its connection with performance measurement from an epistemological point of view, considering…
Abstract
Purpose
The purpose of this paper is to address the issue of knowledge visualization and its connection with performance measurement from an epistemological point of view, considering quantification and measurement not just as technical questions but showing their relevant implications on the management decision-making of knowledge-based organizations.
Design/methodology/approach
This study proposes a theoretical contribution that combines two lines of research for identifying the three main meta-choices problems that arise in the multidimensional benchmarking of knowledge-based organizations. The first is the meta-choice problem related to the choice of the algorithm used (Iazzolino et al., 2012; Laise et al., 2015; Daraio, 2017a). The second refers to the choice of the variables to be included in the model (Daraio, 2017a). The third concerns the choice of the data on which the analyses are carried out (Daraio, 2017a).
Findings
The authors show the interplay existing among the three meta-choices in multidimensional benchmarking, considering as key performance indicators intellectual capital, including Human Capital, Structural Capital and Relational Capital, and performances, evaluated in financial and non-financial terms. This study provides an empirical analysis on Italian Universities, comparing the ranking distributions obtained by several efficiency and multi-criteria methods.
Originality/value
This study demonstrates the difficulties of the “implementation problem” in performance measurement, related to the subjectivity of results of the evaluation process when there are many evaluation criteria, and proposes the adoption of the technologies of humility related to the awareness that we can only achieve “satisficing” results.
Details
Keywords
Blessing Katuka, Calvin Mudzingiri and Peterson K. Ozili
This study aims to examine the impact of fiscal space and governance quality on inclusive growth in African countries.
Abstract
Purpose
This study aims to examine the impact of fiscal space and governance quality on inclusive growth in African countries.
Design/methodology/approach
In total, 28 African countries were analyzed from 2000 to 2020 using the generalized method of moment regression method. An inclusive growth index was developed using the principal component analysis (PCA) method. The PCA-derived index incorporates factors such as poverty, income inequality, economic participation and per capita income.
Findings
The main findings suggest that fiscal space availability (de facto fiscal space and fiscal balance) promotes inclusive growth. The study also showed that lagged inclusive growth, digitalization and governance indicators positively influence inclusive growth. The study concludes that fiscal space availability fosters inclusive growth, but this effect is mediated by governance quality in Africa.
Originality/value
Several studies examined the role of fiscal policy on inclusive growth. However, it is crucial to assess the fiscal space, that is, the financial capacity of the government to implement its fiscal policy without harming its financial stability. This paper, therefore, contributes to the existing literature by using de facto fiscal space indicator to comprehend fiscal dynamics contributing to inclusive growth. In addition, the paper uniquely constructs an inclusive growth index by including poverty severity, which considers both the incidence and depth of poverty and inequality in society.
Details