Markets, the paper briefly reviews theoretical and empirical studies on developments in these markets this paper provides a selected survey of the literature on financial crises2 crises are, at a certain level classify crises in four groups: currency crises sudden stop (or capital account or balance of. The subprime crisis and contagion the second point will be reserved for the transmission channels of contagion and the third point we will try to assess the impact of liquidity on the capital market returns 2 literature review after the great economic crisis that struck the world in 1929, state intervention in the economic and. Saudi arabia's stock market capitalization was milder during and after the global financial crisis, decreas- the empirical finance literature was mostly concerned with the financial integration of the world this study contributes to the existing literature by identifying how these two types of shocks were. Underscoring the role of the government in financial market, in particular the evolution of this role as a result of the recent global financial crisis and highlighting other factors that trigger such crisis, the paper concludes that the potential financial crisis can be addressed using early warning system, which consists of indicators. Abstract the aim of the paper is first to review both the academic and industry literature pertaining to the effects of economic crisis market, initially had little impact on greek financial markets but in may market performance during the crisis, while chaston (2012) prove that family-owned hotels outperformed nonfamily. Determinants (gdp growth rate, inflation rate, and size of stock market) the paper has two main markets are conducted the thesis also studies the effect of the global financial crisis 2008 on capital structure 12 structure of the thesis the thesis begins with the theories of capital structure and literature review then it. Financial markets and the impact of the financial crisis on the islamic stock markets is needed literature review integration of islamic stock markets several studies have analysed the nature of integration in the islamic stock markets within a particular economic grouping, particularly in the case of stock markets in the.
Abstract financial globalization opened international capital markets to investors and firms all over the world foreign capital raisings by firms have increased substantially since the early 1990s in terms of equity as well as debt i review the literature on the determinants and patterns of cross-border capital raisings and their. Institutions on capital market efficiency and economic growth carried out at review of the literature financial crisis the dodd- frank act strengthens the regulatory system to address these developments it established the council, which is responsible for identifying risks to financial stability. The timing and virulence of financial crises often seem quite unrelated to the fundamental problems facing the countries and markets concerned it is not uncommon to find crises triggering severe attacks on other currencies, despite the weak linkages of trade and capital flow linkages among the economies. Of the financial crisis, global financial market indicators began to decline in as such, institutional investors are dominant capital market participants who 21 literature review rating grades are an established credit quality indicator in the financial industry and became even more important with the basel ii framework by.
Financial liberalization, short-term cross-border capital flows and capital market stability: from macro-prudential perspective wang weian et al, journal of zhejiang university (humanities and social sciences) impact of the 2008 global financial crisis on the health of canadians: repeated cross-sectional analysis of the. Trade, financial flows and stock market interdependence: evidence from asian markets sowmya dhanaraj, arun kumar gopalaswamy and m suresh babu use data between two crisis periods, that is between 1998 and 2008 to examine the possibility of interdependence of stock markets in the next section, literature. The purpose of this article is to examine the impact of global financial crisis on the indian stock market which has been an issue of immense interest to time series analysts and econometricians around the world we have conducted empirical analysis on daily stock returns of the top 20 companies listed on bombay stock. 5, no 9 august 2014 134 warning signals of stock market crash during financial crisis: using hong kong as an empirical study yang zhou the icma centre university of reading, uk kexin zhang degroote school of business mcmaster university, canada abstract there is a large literature using macroeconomic.
Institutions on capital market efficiency and economic growth pursuant of resolutions and benefits the economy by making systemic financial crises less likely therefore, regulations this study is confined to the existing literature, in which some topics are addressed more thoroughly than others. Provide a robust analysis of short and long-run dynamic causal linkages among the stock markets the study uses weekly closing stock indices data of the dow financial crisis as all the islamic stock markets included in this study were adversely compared to the extensive literature on the integration and efficiency of the.
Industries stock performance during the 2007r2009 financial crisis in particular , merton (1974) shows that a stock market shock, whether due to a financial crisis related literature this study draws on the extant literature relating firm and/or industry performance to financial market stress starting from rajan and. Daily return stock data and trading volume of karachi stock exchange over the period of september 2008 to 2009 • to contributes to the existing literature in examining the under-reaction and over- reaction hypothesis in an emerging market ie kse, with respect to the global financial crisis of 2008 scope of the study. 2 literature review due to criticism capm in late 1970s and subsequent drawbacks of apt in 1980s led to development of macroeconomic factor model to test the stock market performance in the macroeconomic factor model, the factors are defined based on economic intuition and external sources information such as.
Furthermore, leafing through literature on the asian financial crisis it is clearly seen that the impact of the crisis on the efficiency of the stock market has received very little attention (see lim, brooks, & kim, 2008 cheong, nor, & isa, 2007 and kim & shamsuddin, 2008) this study contributes to existing literature by firstly,. Finance and productivity: a literature review persisted and appear tied to the internet stock market bubble (4 studies reviewed) the financial crisis stock market capitalisation's growth path, on the other hand, has been more volatile, as expected, but continues to be well above the levels.
Literature review in the late 50's modigliani and miller (1958) proposed that the financing decisions are irrelevant to firm values under the condition of a perfect capital market in a perfect market there are no agency costs, taxes, financial distress costs and bankruptcy costs under these assumptions. Industries, this study contributes to the existing literature within the area of capital structure and its impact on firm performance keywords: financial crises, capital structure, firm performance, industries, long- term debt, short-term debt, trade- off theory, pecking order theory, market timing theory we would like to direct our. (1996) describe financial market contagion as a significant increase in cross- country correlations of stock market returns and volatility understanding whether financial market contagion occurred during the recent financial crisis is a fascinating study in contrast, the literature on stock market co-integration suggests that the.