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This study investigates whether the disclosure of derivatives is value relevant in emerging markets and evaluates the effects of the 2008/2009 global financial crisis on the value relevance of derivative disclosures.

Panel regression models using sub-samples and a crisis interaction term were applied to a sample of the 200 largest non-financial firms by market capitalization listed on the Johannesburg Stock Exchange (JSE) from 2005 to 2017 to assess the consequences of the financial crisis.

The results suggest that the disclosure of derivatives is value relevant in the hitherto understudied context of emerging markets. The 2008/2009 financial crisis had a significant impact on derivatives use and the value relevance of derivatives disclosure by JSE-listed companies.

Companies should reconsider both how they employ derivatives as part of their risk management practices and how they communicate derivatives use to stakeholders in the financial statements. The findings facilitate a comparative analysis across various market contexts by researchers and assist investors in better decision-making. The findings can influence regulatory practices and can help standard setters to review disclosure requirements.

The benefits of corporate hedging were studied from an emerging market perspective, using an original dataset and approach to investigate the effects of international financial volatility on emerging markets. The authors tested whether companies are valued differently, based on their disclosure of the use of derivatives in the financial statements, and the effect of the financial crisis on the value relevance derivatives disclosures.

The purpose of this chapter is twofold: in the first part, we will provide comprehensive, state-of-the-art urban and visual studies across the domains of visibility, urban aesthetics and the legitimate use of the urban. We will show that what we see is foremost what is accessible and legitimate as a vision, while the urban provides multiple realms of invisibility that are often neglected or rendered invisible. Art, architecture, urbanism and place-making will be used as examples of these dynamics.

In the second part of the chapter, we will present a research study on the decolonial practices of re-signification of colonial urban traces. Despite the dominant representation of Italians as ‘good people’ (a local version of ‘white innocence’), in recent years, Italy has witnessed a new interest stemming from bottom-up local movements dealing with colonial legacy in the urban space. We will show a research example (‘Decolonising the City. Visual Dialogues in Padova’) based on participatory video, arts-based methods and walking methods.

This study aims to investigate herding spillover in BRIC (Brazil, Russia, India and China) countries and Turkey under different regimes by using a time-varying approach.

The authors used the structural change model of Bai and Perron (1998).

The results indicate that there is an evidence of herding behaviour in the Chinese stock market in two different regimes. These regimes cover the recent global financial crisis and the period of Hong Kong protests. We also report the evidence of herding behaviour in the Turkish stock market in the regime covering the COVID-19 period. Findings of herding spillover show that there is a two-way herding among Russia and China during crises and high volatile regimes. Similarly, there exists a cross-country herding among Brazil and India during crisis regimes. Also, there is herding spillover from Turkey to Russia, China and Brazil during the global financial crisis, post-European debt crisis and COVID-19 periods respectively. Furthermore, it is also evident that there is a herding spillover from Russia and China to India during the period covering COVID-19.

To the best of the authors' knowledge, this is the first study that uses structural change approach to identify herding behaviour spillovers from the US stock market to BRIC countries and Turkey and to investigate the cross-country herding behaviour among BRIC countries and Turkey.

The global financial crisis (GFC) of 2007–2008 had far-reaching consequences for the global economy, triggering widespread economic turmoil. We use the event-study method to investigate whether investors priced the effect of significant events before the Lehman Brothers' bankruptcy in European and Asia-Pacific banks. Abnormal returns on the event days range from −4.32% to 5.03% in Europe and −5.13% to 6.57% in Asia-Pacific countries. When Lehman Brothers went bankrupt on September 15, 2008, abnormal returns averaged the lowest at −4.32% in Europe and −5.13% in Asia-Pacific countries. The significant abnormal returns show that Lehman Brothers' collapse was a turning point, and investors paid attention to the precrisis events as warning signs of the oncoming crisis.

When organizations engage in misconduct, social control agents play a crucial role in sanctioning them to show the enforcement of societal norms and reduce the risk of future deviance. We study the interaction between the government and the media, two key social control agents, in the evaluation organizational misconduct. While past work has focused on the influence of the media on the government, we theorize the influence of the government on the media. The government is a social control agent with supreme formal authority to punish misconduct, and thus its actions are of particular interest to the media as they form evaluations of misbehaving organizations. However, the government, tied by conflicting demands, sometimes turns a blind eye to misconduct and supports misbehaving organizations for the greater societal good, instead of punishing them. How is the media’s perception of misbehaving organizations affected by such government actions? We explore this question by looking at the case of the 2008 government bailout of investment banks in the United States, after those were caught red-handed for their involvement in the sub-prime financial crisis. Carrying out a content analysis of newspaper reporting (2007–2011), we show that the negative perception of investment banks and their misconduct is attenuated when they receive government support. Our work contributes to the emerging literature on the social construction of organizational misconduct and illuminates the interaction between government and media in the evaluation of behavior as organizational misconduct.

We analyzed the global historical change between 2007 and 2014, mainly emanating from economic and political games played between the USA and European countries starting with the Great Crisis and ending with Arab Spring, from the perspective of contemporary philosophy, and found that it not only growth reducing effect but also devastating effects on Middle East and North Africa (MENA) region due to the deterioration of governance. This chapter, by conducting empirical analysis, brings new definitions to existing concepts such as rules of the game, homosapien and sage. The Great Crisis is not a global crisis, but a trans-Atlantic financial crisis initiated by the incapable corporate governance of US-based financial multinational corporations (MNCs). The crisis faced by MENA countries that are exposed to Arab Spring as of 2012 is not the economic spillover effect of the Great Crisis but a consequence of political destabilization as a result of deteriorating governance structures in the region by developed countries under the name of Arab Spring. Not the entire-region, but only the countries exposed to Arab Spring, have experienced negative growth.

Financial instability and economic crises are closely intertwined. There is no universally accepted definition. The term ‘stability’ or ‘instability’ refers to the behaviour of the system rather than to individual institutions. However, one cannot rule out that failure of a single financial institution can trigger significant financial turmoil as was happened in 2007–08 global financial crises. Like unstable equilibrium, instability implies inability to correct itself on its own. Instability, if it persists, turns into a crisis. In the above backdrop, the objective of this chapter is to investigate the financial crises and instability viewed both from economic and international political economy perspectives with a tale of four generation crisis models as it has been evolved over time to explain the phenomenon of different types of crises.

The relationship between trust, accountability and procedural justice is studied via research into British credit unions (CUs) following regulatory reform to remedy problems exposed by the 2007–2008 global financial crisis.

Interviews at 13 case studies of different types and sizes of credit unions in Glasgow, Scotland, are examined using template analysis and abductive theorizing to understand the effects of disproportionate reforms on small credit unions.

Smaller credit unions found three regulatory changes – namely dual regulators, increased minimum reserves and introduction of the Senior Managers and Certification Regime – excessive. Excessive change generated distrust in regulators. Regulators' insufficient attention to procedural justice contributed to this distrust.

Linkage of multidimensional confluent trust to a multilevel system of accountability provides an original way of understanding how indiscriminate attempts at trust repair damage some elements of trust in formal regulatory systems. Recognition of the need for procedural justice to enable smaller credit unions to articulate their extant checks and potential exemption from formal regulations provides another valuable contribution. The explanation of the abductive logic employed is also original.

Systems thinking calls for a shift of our mindset from seeing just parts to seeing the whole reality in its structured dynamic unity and interconnectedness. Systems thinking fosters a sensibility to see subtle connections between components and parts of reality, especially the free enterprise capitalist system (FECS). It enables us to see ourselves as active participants or partners of FECS and not mere induced factors of its production–distribution–consumption processes. Systems thinking seeks to identify the economic “structures” that underlie complex situations in FECS that bring about high versus low leveraged changes. A system is strengthened and reinforced by feedback of reciprocal exchanges that makes the system alive, transparent, human, and humanizing.

In Part I, we explore basic laws or patterns of behaviors as understood by systems thinking; in Part II we examine the basic archetypes or structured behaviors of systems thinking; in both parts we strive to see reality through the lens of critical thinking to help us understand patterns and structures of behavior among systems and their component parts. In conclusion, we argue for compatibility and complementarity of critical thinking and systems thinking to identify and resolve management problems created by our flawed thinking, and sedimented by our wanton assumptions, presumptions, suppositions and presuppositions, biases, and prejudices. Such thinking will also identify unnecessary economic and political structures of the self-serving policies we create, which imprison us.

This paper aims to examine the dynamics of house prices in metropolitan cities in an emerging economy. The purpose of this study is to characterise the house price dynamics and the spatial heterogeneity in the dynamics.

The author explores spatial heterogeneity in house price dynamics, using data for 35 Indian cities with a million-plus population. The research methodology uses panel econometrics allowing for spatial heterogeneity, cross-sectional dependence and non-stationary data. The author tests for spatial differences and analyses the income elasticity of prices, the role of construction costs and lending to the real estate industry by commercial banks.

Long-term fundamentals drive the Indian housing markets, where wealth parameters are stronger than supply-side parameters such as construction costs or availability of financing for housing projects. The long-term elasticity of house prices to aggregate household deposits (wealth proxy) varies considerably across cities. However, the elasticity estimated at 0.39 is low. The highest coefficient is for Ludhiana (1.14), followed by Bhubaneswar (0.78). The short-term dynamics are robust and show spatial heterogeneity. Short-term momentum (lagged housing price changes) has a parameter value of 0.307. The momentum factor is the crucial dynamic in the short term. The second driver, the reversion rate to long-term equilibrium (estimated at −0.18), is higher than rates reported from developed markets.

This research applies to markets that require some home equity contributions from buyers of housing services.

Stakeholders can characterise stable housing markets based on long-term fundamental value and short-run house price dynamics. Because stable housing markets benefit all stakeholders, weak or non-existent mean reversion dynamics may prompt the intervention of policymakers. The role of urban planners, and local and regional governance, is essential to remove the bottlenecks from the demand side or supply side factors that can lead to runaway prices.

Existing literature is concerned about the risk of a housing bubble due to relaxed credit norms. To prevent housing market bubbles, some regulators require higher contributions from home buyers in the form of equity. The dynamics of house prices in markets with higher owner equity requirements vary from high-leverage markets. The influence of wealth effects is examined using novel data sets. This research, documents in an emerging market context, the observations cited in low-leverage developed markets such as Germany and Japan.