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This study aims to investigate the effect of political turmoil on the firm financial performance, particularly in presence of politically affiliated board of directors.

The study applied panel regression analyses on a data set of Pakistan’s listed companies ranged over 14 years, spanning from 2007 to 2021. Political turmoil was first gauged through three determinants, i.e. political protest, government election and constitutional reform, and thereafter, economic uncertainty index was used as a proxy for political turmoil. For the purpose of political connection, the study used political affiliation of the board of directors.

The study finds that political turmoil has deleterious effect on the return on assets and Tobin’s Q. The study further unveils that politically affiliated firms are relatively insulated from the volatility posed by the political uncertainty and exhibit significantly better financial outcomes.

Findings of the study suggest that appropriate composition of the board is imperative in offsetting the risk posed by the political turmoil. Hence, the results are useful for investors, policymakers and regulators to ensure financial soundness of firms in the wake of political turmoil.

To the best of the authors’ knowledge, this is the first study that investigates the moderating impact of political connection on the performance of companies in presence of political turmoil.

Investigates EU‐Asian economic relations and identifies some of the factors that can explain their lag vis‐à‐vis Japan and the USA. Argues that the Asian economic turmoil offers the EU a second chance to catch up in their economic relations with the region. Argues further that recent EU initiatives and the European recovery will make it easier for Asian countries to expand their exports to Europe than to the USA and Japan.

This paper aims to analyze how financial system turmoil affected unemployment in industrial countries during the period 1982 to 2003.

The paper uses annual data on 17 industrial countries. It employs the International Monetary Fund's financial stress index and a large number of controls.

The paper finds that, during the sample period, financial market turmoil had only moderate adverse effects on unemployment. Stress in the banking sector and stress in foreign exchange markets were particularly likely to increase unemployment, although the relevant effects were modest too. Turmoil in securities markets affected unemployment only slightly. The results are robust to variations in specification.

While previous papers only look at a small number of banking crises, this paper's sample includes crises in all major areas of the financial sector. Furthermore, whereas previous papers cover only major crises, it additionally takes both minor crises and periods of relative calm into account. Finally, this paper is the first to statistically control for the impact of all major determinants of labor market performance.

Much of the extant evidence in the marketing literature posits that firms use strategic alliances to share resources, costs and risks as paths to performance improvements. Drawing from the organizational ecology theory, this study aims to propose a different rationale, namely, that strategic alliances protect a firm’s core structure – its stated goals, authority structure, core technologies and marketing strategies – by mitigating the need for hazardous changes in hostile environments.

This study collected quantitative data using market survey and analyzed the data with the regression method.

Using Chinese firms in three technology industries as the research setting, this research finds a positive and significant relationship between environmental hostility and core structure dynamism. Although strategic alliances themselves have no direct bearing on core structure dynamism, they are found to moderate this relationship negatively, that is, strategic alliances attenuate the relationship between environmental hostility and structural changes.

This paper argues that strategic alliances have significant moderating effects on firm performance, that is, firms use strategic alliances to outsource competence to partners and, thus, avoid internal turmoil. However, the moderating effect alone cannot explain the complexity of strategic alliances. There could exist other effects that remain unknown. In addition, individual-level factors could have significant impacts on strategic alliance management. Future studies should look into these issues to advance the authors’ knowledge on strategic alliances.

The findings of this study show that managers should outsource competence to partners when they experience turmoil in markets. Adapting to market turmoil internally could lead to market failure.

This study provides a new rationale for strategic alliances, that is, firms use strategic alliances to reduce market uncertainty. This rationale has not been reported in the existing literature.

The purpose of this study is to ascertain how foreign and domestic Exchange Traded Funds (ETFs) investing in Indian equities affect their return volatility and pricing efficiency. Further, we investigate how the difference in market timings affect the impact of ETFs on their constituents. Lastly, we examine how these effects vary during tranquil and turmoil periods in the ETF markets.

The study is based on quarterly data for stocks comprising the CNX Nifty 50 Index from 2009Q1 to 2019Q3. The data on holdings of 45 domestic and 196 foreign ETFs in the sample stocks were obtained from Thomson Reuters' Eikon. The paper employs a panel-regression methodology with stock and time fixed effects and robust standard errors.

Foreign ETFs from North America and the Asia Pacific largely have an adverse impact on stocks' return volatility. In times of turmoil, stocks with higher coverage of European, North American and Domestic funds are susceptible to volatility shocks emanating from these regions. European and Asia Pacific ETFs are associated with improved price discovery while North American funds impound a mean-reverting component in stock prices. However, in turbulent markets, both positive and negative impacts of ETFs on pricing efficiency coexist.

To the best of the authors' knowledge, this is the first study that examines the impact of domestic as well as foreign ETFs on the equities of an emerging market. Furthermore, the study is unique as we investigate how the effects of ETFs vary in turbulent and tranquil markets. Moreover, the paper examines the role of asynchronous market timings in determining the ETF impact. The paper adds to the growing literature on the unintended consequences of index-linked products.

The current paper contributes to the vigorous debate about policies and regulations that would shield financial markets' participants from future events of the financial turmoil. In doing so, the paper aims to broaden the picture of the financial crisis contagion and set it against the background of contemporary European markets. The main purpose of this paper is to present novel aspects of the financial crisis contagion, hence clarifying the contagion theory that still remains confusing and ambiguous for both the academics and financial markets' practitioners.

The paper builds on a simulation model for the financial crisis contagion that is rooted in the qualitative query and backed by semi‐structured interviews with financial markets' participants who possess extensive knowledge about the functioning of European markets and their interconnectedness. With this in mind, the current paper adopts an international investor's perspective on implications that stem from the linkages between European financial markets, flawed regulations and the absence of cross‐border monitoring of the financial crisis contagion.

The findings constitute practical insights into the issues of the financial crisis contagion, hence providing useful advice on policies and regulations that could manage the cross‐market transmission of the financial turmoil and shield financial markets' participants from the episodes of financial crises in the future. The findings reported in this paper also present novel aspects of the contagion processes across the contemporary and systemically important financial markets in Europe.

The practical implications of the current paper gain in significance as the nascent financial crisis sparked off vigorous debate about the need for implementing regulations that would prevent financial markets' participants from the future episodes of global financial crises. At this point, the findings reported in the current paper might be of interest for policy makers and markets' authorities. In addition, the paper attempts to deliver findings that practitioners associated with the contemporary European financial markets would benefit from by understanding the linkages between these markets and ways the financial contagion spreads. Previously, little knowledge of ways financial crises spread across markets caused substantial losses that were incurred by investors.

The current paper addresses the issues of the financial crisis contagion that belong to the group of the most commonly referenced yet least understood notions in finance. Furthermore, the paper focuses on addressing the recently exposed fragility of financial markets' surveillance and regulations. In doing so, the paper employs a pioneering approach to a simulation of the financial crisis contagion by embarking on a qualitative query rather than empirical data. Henceforth, the limitations of the empirical simulations – experienced in the past studies devoted to investigation of the financial crisis contagion – were ameliorated and the findings presented in the paper became of practical use for the markets' practitioners and policymakers.

This chapter investigates the predictability of the European monetary policy through the eyes of the professional forecasters from a large investment bank. The analysis is based on forward-looking Actual and Perceived Taylor Rules for the European Central Bank which are estimated in real-time using a newly constructed database for the period April 2000–November 2009. The former policy rule is based on the actual refi rate set by the Governing Council, while the latter is estimated for the bank’s economists using their main point forecast for the upcoming refi rate decision as a dependent variable. The empirical evidence shows that the pattern of the refi rate is broadly well predicted by the professional forecasters even though the latter have foreseen more accurately the increases rather than the policy rate cuts. Second, the results point to an increasing responsiveness of the ECB to macroeconomic fundamentals along the forecast horizon. Third, the rolling window regressions suggest that the estimated coefficients have changed after the bankruptcy of Lehman Brothers in October 2008; the ECB has responded less strongly to macroeconomic fundamentals and the degree of policy inertia has decreased. A sensitivity analysis shows that the baseline results are robust to applying a recursive window methodology and some of the findings are qualitatively unaltered from using Consensus Economics forecasts in the regressions.