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1 – 10 of 227Dhulika Arora and Smita Kashiramka
Shadow banks or non-bank financial intermediaries (NBFIs) are facilitators of credit, especially in emerging market economies (EMEs). However, there are certain risks associated…
Abstract
Purpose
Shadow banks or non-bank financial intermediaries (NBFIs) are facilitators of credit, especially in emerging market economies (EMEs). However, there are certain risks associated with them, such as their unchecked leverage and interconnectedness with the rest of the financial system. In light of this, the present study analyses the impact of the growth of shadow banks on the stability of the banking sector and the overall stability of the financial system. The authors further examine the effect of the growth of finance companies (a type of NBFIs) on financial stability.
Design/methodology/approach
The study employs data of 11 EMEs (monitored by the Financial Stability Board (FSB)) for the period 2002–2020 to examine the above relationships. Panel-corrected standard errors method and Driscoll–Kray standard error estimation are deployed to conduct the analysis.
Findings
The results signify that the growth of the shadow banking sector and the growth of lending to the shadow banking sector are negatively associated with the stability of the banking sector and increases the vulnerability of the financial system (overall instability). This implies that the higher the growth of the shadow banks, the higher the financial fragility. Finance companies are also found to negatively affect financial stability. These findings are validated by different estimation methods and point out the risks posed by the NBFI sector.
Originality/value
The extant study builds a composite index (Financial Vulnerability Index (FVI)) to measure financial stability; thus, the findings contribute to the evolving literature on shadow banks.
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Natascha Radclyffe-Thomas, Anne Peirson-Smith, Ana Roncha and Adrian Huang
As industries are increasingly globalized, our students’ future workplaces require facility with cross-cultural collaboration, yet curricula often remain situated within the home…
Abstract
As industries are increasingly globalized, our students’ future workplaces require facility with cross-cultural collaboration, yet curricula often remain situated within the home culture. This chapter presents a qualitative case study on a collaborative project between students in London, Hong Kong, and Singapore. An overview of the process is given drawing on the experiences of the teachers and students involved, informing a discussion around the issues inherent in the internationalization of the curriculum. Tutors created a shared private Facebook group to connect London College of Fashion students with students at City University Hong Kong and LASALLE College of the Arts Singapore. Students worked on separate but aligned briefs that mirror contemporary working patterns and allowed co-creation of educational experiences beyond the geographic and time constraints of working internationally, specifically addressing issues around global and local communications. The Facebook platform was used separately and collaboratively to support students’ learning and the digitally mediated collaboration allowed for flexibility in when and how education took place, providing a third space for co-creation of learning: a global classroom.
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Barbara Cozza and Patrick Blessinger
The chapters in this book focus on how university-school partnerships can be used to foster academic and program development. The introductory chapter is oriented around three key…
Abstract
The chapters in this book focus on how university-school partnerships can be used to foster academic and program development. The introductory chapter is oriented around three key questions: How do we define innovative international university partnerships? Do these innovative international university partnerships really work? What factors contribute to the success of these collaborations? In addressing these questions, this chapter presents a framework that addresses a taxonomy for innovative programs, elements to develop partnerships, ideas for sustaining collaboration, and challenges that might surface during implementation. In this volume a range of perspectives is presented using case studies and empirical research on how university partnerships are being implemented internationally. These findings suggest that university partnerships have great potential to enhance and even transform colleges and universities.
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Carlo Bellavite Pellegrini, Laura Pellegrini and Emiliano Sironi
Systemic risk has been one of the most interesting issues in banking and financial literature during the last years, particularly in evaluating its effects on the stability of the…
Abstract
Systemic risk has been one of the most interesting issues in banking and financial literature during the last years, particularly in evaluating its effects on the stability of the whole financial system during crises. Differently from other studies which analyze systemic risk focusing on European countries, we explore the determinant of systemic risk in other regional or continental banking systems, as Latin America. Using the CoVaR approach proposed by Adrian and Brunnermeier (2016), we study the impact of corporate variables on systemic risk on a sample of 30 Latin American banks belonging to seven countries, continuously listed from 2002Q1 to 2015Q4. We investigate the contribution of the corporate variables over different economic periods: the Subprime crisis (2007Q3–2008Q3), the European Great Financial Depression (2008Q4–2010Q2), and the Sovereign debt crisis (2010Q3–2012Q3).
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Mostafa Hasan, Dewan Rahman, Grantley Taylor and Barry Oliver
The purpose of this paper is to examine the association between debt maturity structure and stock price crash risk in Australia.
Abstract
Purpose
The purpose of this paper is to examine the association between debt maturity structure and stock price crash risk in Australia.
Design/methodology/approach
The authors employ panel data estimation with industry and year fixed effects. The paper uses a sample of 1,548 publicly listed Australian firms (8,661 firm-year observations) covering the 2000–2015 period.
Findings
Stock price crash risk is positively and significantly associated with the long-term debt maturity structure of firms. In addition, this positive association is more pronounced for firms with a more opaque information environment.
Originality/value
This is the first study to examine stock price crash risk in Australia. The findings are value relevant as it uncovers how debt maturity structure affects shareholders' wealth protection.
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Ming Qi, Jiawei Zhang, Jing Xiao, Pei Wang, Danyang Shi and Amuji Bridget Nnenna
In this paper the interconnectedness among financial institutions and the level of systemic risks of four types of Chinese financial institutions are investigated.
Abstract
Purpose
In this paper the interconnectedness among financial institutions and the level of systemic risks of four types of Chinese financial institutions are investigated.
Design/methodology/approach
By the means of RAS algorithm, the interconnection among financial institutions are illustrated. Different methods, including Linear Granger, Systemic impact index (SII), vulnerability index (VI), CoVaR, and MES are used to measure the systemic risk exposures across different institutions.
Findings
The results illustrate that big banks are more interconnected and hold the biggest scales of inter-bank transactions in the financial network. The institutions which have larger size tend to have more connection with others. Insurance and security companies contribute more to the systemic risk where as other institutions, such as trusts, financial companies, etc. may bring about severe loss and endanger the financial system as a whole.
Practical implications
Since other institutions with low levels of regulation may bring about higher extreme loss and suffer the whole system, it deserves more attention by regulators considering the contagion of potential risks in the financial system.
Originality/value
This study builds a valuable contribution by examine the systemic risks from the perspectives of both interconnection and tail risk measures. Furthermore; Four types financial institutions are investigated in this paper.
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There is an emerging consensus that systemically important banks should face stricter regulations and systemic surcharges. To make this latter principle operational the regulator…
Abstract
Purpose
There is an emerging consensus that systemically important banks should face stricter regulations and systemic surcharges. To make this latter principle operational the regulator will need to quantify the systemic importance of individual banks. The purpose of this paper is to review the proposed measures of systemic importance from the research community and discuss their merits relative to how a regulator would ideally wish to calibrate surcharges on systemically important banks, and to evaluate how useful proposed measures of the systemic importance of financial institutions will be to regulators.
Design/methodology/approach
The author reviews the main contributions to the research literature and discusses their relevance for the problem faced by regulators.
Findings
There are five main caveats that make the proposed measures of systemic importance less useful for regulators.
Practical implications
The proposed measures may help identify relevant aspects of systemic importance, but the regulators will need to construct their own measures for practical use.
Originality/value
The paper provides a critical review of a research literature that could potentially have large practical implications.
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Adrian Gepp, Martina K. Linnenluecke, Terrence J. O’Neill and Tom Smith
This paper analyses the use of big data techniques in auditing, and finds that the practice is not as widespread as it is in other related fields. We first introduce contemporary…
Abstract
This paper analyses the use of big data techniques in auditing, and finds that the practice is not as widespread as it is in other related fields. We first introduce contemporary big data techniques to promote understanding of their potential application. Next, we review existing research on big data in accounting and finance. In addition to auditing, our analysis shows that existing research extends across three other genealogies: financial distress modelling, financial fraud modelling, and stock market prediction and quantitative modelling. Auditing is lagging behind the other research streams in the use of valuable big data techniques. A possible explanation is that auditors are reluctant to use techniques that are far ahead of those adopted by their clients, but we refute this argument. We call for more research and a greater alignment to practice. We also outline future opportunities for auditing in the context of real-time information and in collaborative platforms and peer-to-peer marketplaces.
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