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on Corporate Finance |
| By: | Ton Notermans (Department of International Relations, Tallinn School of Economics and Business Administration, Tallinn University of Technology) |
| Abstract: | The almost consensual view on the global financial crisis is that it should be attributed to massive regulatory failure. Regulation is either argued to have failed in constraining an inherently instable financial system or to have provoked the crisis by means of inappropriate regulatory changes. Even though a core conclusion from the present crisis is that a microeconomic focus on financial stability does not suffice and will need to be complemented by macroprudential regulation, there is also widespread consensus that the crisis has demonstrated the need to strengthen the microprudential regulatory framework itself. This literature review focuses on the microeconomic aspects of financial regulation. It is built around three main questions: what exactly did the regulatory failure consists of? How was it possible for regulatory failure to emerge? What lessons have been drawn from the crisis? Not surprisingly, the consensus in the literature evaporates when looking for precise answers to these questions. The introductory section of the paper address two broader question; i.e. why financial firms should be subjected to tighter regulation than the rest of the economy and how financial instability may be defined and measured. |
| Keywords: | Banking Union, Corporate Governance, Credit Rating Agencies, Financial Sector Reform, Financial Stability, Household, Indebtedness, Microprudential Regulation, Shadow Banking, Sovereign Debt |
| JEL: | G01 G21 G24 G28 G32 G35 |
| Date: | 2013–12–03 |
| URL: | http://d.repec.org/n?u=RePEc:fes:wpaper:wpaper08&r=cfn |
| By: | Michal Jurek (Department of Banking, Poznan University of Economics) |
| Abstract: | The purpose of this report is to analyse the structure of ownership in the financial sector in the selected old (France, Germany, Greece, Italy, Sweden, the United Kingdom) and new (the Czech Republic, Hungary, Poland) EU Member States. This subject is particularly important to the proper understanding of the scale and scope of the process of financialisation in the EU countries. General objective of the report is the investigation and evaluation of the evolution of the structure of ownership in the financial sector across the EU and its consequences with the special consideration of relations between this process and withdrawal of the State from the financial sector. In order to accomplish this target, extensive research is undertaken. It encompasses the analysis of the types of financial institutions functioning in selected countries. Areas of competition, cooperation and interdependence between different types of financial institutions are identified, as well as similarities and differences in the present composition and structure of the financial sector in particular EU countries and factors behind inter-country differences. Finally, comparative analysis of evolution of structure of financial sector and its driving forces in particular countries and group of countries is presented. |
| Keywords: | financial institutions, financial sector, banking and finance, ownership structure, market concentration, mergers and acquisitions, privatization |
| JEL: | E44 E50 G21 G22 G32 G34 N24 |
| Date: | 2013–12–02 |
| URL: | http://d.repec.org/n?u=RePEc:fes:wpaper:wpaper16&r=cfn |
| By: | Kersting, Erasmus K. (Federal Reserve Bank of Dallas); Gorg, Holger (Federal Reserve Bank of Dallas) |
| Abstract: | We investigate the financial implications of a multinational firm's choice between outsourcing and integration from the perspective of the supplier. Using a simple model, we explore the extent to which an integrated supplier's access to finance, as well as its sources of funding, change relative to a firm supplying a multinational at arm's-length. The model predicts that integrated firms have better access to finance and cover a larger share of their costs using internal funds. Furthermore, improvements in a host country's level of financial development have less of an impact on the financial situation of integrated suppliers. We present empirical evidence from firm-level data for over 60 countries broadly supporting the predictions. |
| JEL: | F23 G32 |
| Date: | 2014–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:fip:feddgw:168&r=cfn |