The most powerful driver of regional and urban inequality in the UK for the past 15 years has been the economic success of the London region. Innovativeness in London does not arise primarily from technological initiatives, but from the labour intensive, knowledge-based processes characteristic of the city's internationally networked service functions. The financial services are often portrayed as leading these processes, with other professional and business services acting largely in their support. Yet the latter employ more people in central London, and serve a wider array of markets than suggested by this characterisation. This chapter compares the recent innovation experience of the financial services with other forms of KIBS innovation. Major similarities are noted in the need for market responsiveness, high quality labour, and flexible institutional arrangements, but important differences also emerge. These relate especially the influence of information and communications technology, the different forms taken by regulation, and the autonomy allowed KIBS firms by clients. The distinctive national and regional importance of non-financial KIBS innovation require greater attention, even though this poses some daunting methodological challenges.
{"title":"A Dominant Node of Service Innovation: London's Financial, Professional and Consultancy Services","authors":"Peter R H Wood, D. Wójcik","doi":"10.2139/ssrn.1115007","DOIUrl":"https://doi.org/10.2139/ssrn.1115007","url":null,"abstract":"The most powerful driver of regional and urban inequality in the UK for the past 15 years has been the economic success of the London region. Innovativeness in London does not arise primarily from technological initiatives, but from the labour intensive, knowledge-based processes characteristic of the city's internationally networked service functions. The financial services are often portrayed as leading these processes, with other professional and business services acting largely in their support. Yet the latter employ more people in central London, and serve a wider array of markets than suggested by this characterisation. This chapter compares the recent innovation experience of the financial services with other forms of KIBS innovation. Major similarities are noted in the need for market responsiveness, high quality labour, and flexible institutional arrangements, but important differences also emerge. These relate especially the influence of information and communications technology, the different forms taken by regulation, and the autonomy allowed KIBS firms by clients. The distinctive national and regional importance of non-financial KIBS innovation require greater attention, even though this poses some daunting methodological challenges.","PeriodicalId":47599,"journal":{"name":"European Journal of Finance","volume":null,"pages":null},"PeriodicalIF":2.5,"publicationDate":"2009-08-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84514542","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The beginning of the present global economic crisis dates back to the year of 2007 when, in the same year, the crisis of American mortgage institutes emerged. The crisis was initiated by a large number of doubtful loans requested by clients, mostly by physical persons who were not able to pay them off. The market with securities (mortgage bonds) being covered by insolvent mortgages collapsed. This collapse led to an export of the American mortgage crisis to the global financial world because the mortgage bonds had been purchased by huge bank houses and institutional investors in all continents of the financial world. It is paradoxical that these bonds were given the favourable rating evaluations by renowned worldwide rating agencies. The mortgage crisis in the U.S.A. was gradually growing into the global financial crisis, at first in the U.S.A. and then throughout the world. As a consequence of the globalization and worldwide financial internationalization of the financial world the crisis spread to all spheres of the world economy and gave rise to the global economic crisis.
{"title":"Causes and Consequences of the Global Economic Crisis in the Present Period and its Impact on the Slovak Republic","authors":"Dušan Baran","doi":"10.2139/ssrn.1443072","DOIUrl":"https://doi.org/10.2139/ssrn.1443072","url":null,"abstract":"The beginning of the present global economic crisis dates back to the year of 2007 when, in the same year, the crisis of American mortgage institutes emerged. The crisis was initiated by a large number of doubtful loans requested by clients, mostly by physical persons who were not able to pay them off. The market with securities (mortgage bonds) being covered by insolvent mortgages collapsed. This collapse led to an export of the American mortgage crisis to the global financial world because the mortgage bonds had been purchased by huge bank houses and institutional investors in all continents of the financial world. It is paradoxical that these bonds were given the favourable rating evaluations by renowned worldwide rating agencies. The mortgage crisis in the U.S.A. was gradually growing into the global financial crisis, at first in the U.S.A. and then throughout the world. As a consequence of the globalization and worldwide financial internationalization of the financial world the crisis spread to all spheres of the world economy and gave rise to the global economic crisis.","PeriodicalId":47599,"journal":{"name":"European Journal of Finance","volume":null,"pages":null},"PeriodicalIF":2.5,"publicationDate":"2009-08-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88265697","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Yannick Malevergne, Pedro Santa-clara, D. Sornette
The heavy-tailed distribution of firm sizes first discovered by Zipf (1949) is one of the best established empirical facts in economics. We show that it has strong implications for asset pricing. Due to the concentration of the market portfolio when the distribution of the capitalization of firms is sufficiently heavy-tailed, an additional risk factor generically appears even for very large economies. Our two-factor model is as successful empirically as the three-factor Fama-French model.
{"title":"Professor Zipf Goes to Wall Street","authors":"Yannick Malevergne, Pedro Santa-clara, D. Sornette","doi":"10.2139/ssrn.1458280","DOIUrl":"https://doi.org/10.2139/ssrn.1458280","url":null,"abstract":"The heavy-tailed distribution of firm sizes first discovered by Zipf (1949) is one of the best established empirical facts in economics. We show that it has strong implications for asset pricing. Due to the concentration of the market portfolio when the distribution of the capitalization of firms is sufficiently heavy-tailed, an additional risk factor generically appears even for very large economies. Our two-factor model is as successful empirically as the three-factor Fama-French model.","PeriodicalId":47599,"journal":{"name":"European Journal of Finance","volume":null,"pages":null},"PeriodicalIF":2.5,"publicationDate":"2009-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85650344","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The Liquidity style factor in the new and enhanced Barra Europe Equity Model (EUE3) helps to assess the systematic risk associated with infrequent trading. In this Research Bulletin we look at the risk and return to the EUE3 Liquidity factor in different market environments, the link between stock liquidity and stock size and sector, and the relationship between the significance of the Liquidity factor and market performance. This factor’s return varied with the market cycle during the rally of 1995-2000 and the correction of 2000-2003. In the more recent cycle, there was less dispersion between the rally and the correction. We also find that there are some systematic relationships between a company’s liquidity and its size and sector. Finally, we find that the EUE3 Liquidity factor return tends to be statistically significant when the market moves up or down in a meaningful way, which is consistent with our analysis of the Liquidity factor in GEM2.
{"title":"Liquidity and Stock Returns In Europe","authors":"Msci Inc.","doi":"10.2139/ssrn.1452827","DOIUrl":"https://doi.org/10.2139/ssrn.1452827","url":null,"abstract":"The Liquidity style factor in the new and enhanced Barra Europe Equity Model (EUE3) helps to assess the systematic risk associated with infrequent trading. In this Research Bulletin we look at the risk and return to the EUE3 Liquidity factor in different market environments, the link between stock liquidity and stock size and sector, and the relationship between the significance of the Liquidity factor and market performance. This factor’s return varied with the market cycle during the rally of 1995-2000 and the correction of 2000-2003. In the more recent cycle, there was less dispersion between the rally and the correction. We also find that there are some systematic relationships between a company’s liquidity and its size and sector. Finally, we find that the EUE3 Liquidity factor return tends to be statistically significant when the market moves up or down in a meaningful way, which is consistent with our analysis of the Liquidity factor in GEM2.","PeriodicalId":47599,"journal":{"name":"European Journal of Finance","volume":null,"pages":null},"PeriodicalIF":2.5,"publicationDate":"2009-07-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74269099","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This article proposes a non-parametric portfolio selection criterion for the static asset allocation problem in a robust higher-moment framework. Adopting the Shortage Function approach, we generalize the multi-objective optimization technique in a four-dimensional space using L-moments, and focus on various illustrations of a fourdimensional set of the first four L-moment primal efficient portfolios. Our empirical findings, using a large European stock database, mainly rediscover the earlier works by Jean (1973) and Ingersoll (1975), regarding the shape of the extended higher-order moment efficient frontier, and confirm the seminal prediction by Levy and Markowitz (1979) about the accuracy of the mean-variance criterion.
{"title":"Robust Higher-order Moments and Efficient Portfolio Selection","authors":"Bertrand B. Maillet, Paul Merlin","doi":"10.2139/ssrn.1457703","DOIUrl":"https://doi.org/10.2139/ssrn.1457703","url":null,"abstract":"This article proposes a non-parametric portfolio selection criterion for the static asset allocation problem in a robust higher-moment framework. Adopting the Shortage Function approach, we generalize the multi-objective optimization technique in a four-dimensional space using L-moments, and focus on various illustrations of a fourdimensional set of the first four L-moment primal efficient portfolios. Our empirical findings, using a large European stock database, mainly rediscover the earlier works by Jean (1973) and Ingersoll (1975), regarding the shape of the extended higher-order moment efficient frontier, and confirm the seminal prediction by Levy and Markowitz (1979) about the accuracy of the mean-variance criterion.","PeriodicalId":47599,"journal":{"name":"European Journal of Finance","volume":null,"pages":null},"PeriodicalIF":2.5,"publicationDate":"2009-07-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89158474","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The financial crisis is a crisis of governance as well. In search of answers and solutions many scholars and practitioners recommend improved output control, i.e. better external incentives or even stricter regulations. Monasteries demonstrate that alternative models may be more suitable to enhance sustainable governance quality and to reduce agency problems. In the long history of monasteries, some abbots and monks were known to line their own pockets and some monasteries were undisciplined. Monasteries developed special systems to combat these excesses thus ensuring their survival over centuries. We study these features from an economic perspective. Derived from an analysis of the Benedictine monastery of Engelberg we offer three improvements of applied governance designed to reduce agency problems. First, monastic governance emphasizes clan control rather than output control. Monasteries demonstrate that organizations can prevent agency problems by complementing external discipline with internal behavioral incentives, such as value systems and voice. Second, organization members making firm-specific investments are motivated by broad participation rights and co-determination. Third, the Benedictines are able to apply supportive external control mechanisms, which are not perceived as controlling.
{"title":"Back to the Future - A Monastic Perspective on Corporate Governance","authors":"Emil Inauen, K. Rost, M. Osterloh, B. Frey","doi":"10.2139/ssrn.1434814","DOIUrl":"https://doi.org/10.2139/ssrn.1434814","url":null,"abstract":"The financial crisis is a crisis of governance as well. In search of answers and solutions many scholars and practitioners recommend improved output control, i.e. better external incentives or even stricter regulations. Monasteries demonstrate that alternative models may be more suitable to enhance sustainable governance quality and to reduce agency problems. In the long history of monasteries, some abbots and monks were known to line their own pockets and some monasteries were undisciplined. Monasteries developed special systems to combat these excesses thus ensuring their survival over centuries. We study these features from an economic perspective. Derived from an analysis of the Benedictine monastery of Engelberg we offer three improvements of applied governance designed to reduce agency problems. First, monastic governance emphasizes clan control rather than output control. Monasteries demonstrate that organizations can prevent agency problems by complementing external discipline with internal behavioral incentives, such as value systems and voice. Second, organization members making firm-specific investments are motivated by broad participation rights and co-determination. Third, the Benedictines are able to apply supportive external control mechanisms, which are not perceived as controlling.","PeriodicalId":47599,"journal":{"name":"European Journal of Finance","volume":null,"pages":null},"PeriodicalIF":2.5,"publicationDate":"2009-07-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88502183","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
En el primer semestre de 2009, la rentabilidad de la bolsa espanola fue 6,9% y 81 empresas (entre 136) tuvieron rentabilidad positiva. Considerando conjuntamente los anos 2008 y 2009, solo 4 empresas (Funespana, CAF, Viscofan y Tecnocom) tuvieron rentabilidad positiva. La destruccion de valor para los accionistas de las 136 empresas fue ?5 millardos en el semestre (?420 millardos en 2008). El descenso de 2008-9 ha sido similar a los de 2002, 1947 y 1956; y menor que el de 1973-82. Se muestra un hecho preocupante: el aumento de la rentabilidad adicional que los inversores internacionales exigen a los bonos del Estado espanol con respecto a los emitidos por el Estado aleman. Este diferencial fue practicamente cero en 2003-2006 y aumento sustancialmente en 2008 y 2009. El ultimo anexo contiene algunos apuntes sobre la "crisis".
{"title":"Rentabilidad y Creación de Valor de 136 empresas españolas en el primer semestre de 2009 y en 2008 (Shareholder Value Creation of 136 Spanish Companies in First Semester 2009)","authors":"Pablo Fernández, Vicente J. Bermejo","doi":"10.2139/ssrn.1428788","DOIUrl":"https://doi.org/10.2139/ssrn.1428788","url":null,"abstract":"En el primer semestre de 2009, la rentabilidad de la bolsa espanola fue 6,9% y 81 empresas (entre 136) tuvieron rentabilidad positiva. Considerando conjuntamente los anos 2008 y 2009, solo 4 empresas (Funespana, CAF, Viscofan y Tecnocom) tuvieron rentabilidad positiva. La destruccion de valor para los accionistas de las 136 empresas fue ?5 millardos en el semestre (?420 millardos en 2008). El descenso de 2008-9 ha sido similar a los de 2002, 1947 y 1956; y menor que el de 1973-82. Se muestra un hecho preocupante: el aumento de la rentabilidad adicional que los inversores internacionales exigen a los bonos del Estado espanol con respecto a los emitidos por el Estado aleman. Este diferencial fue practicamente cero en 2003-2006 y aumento sustancialmente en 2008 y 2009. El ultimo anexo contiene algunos apuntes sobre la \"crisis\".","PeriodicalId":47599,"journal":{"name":"European Journal of Finance","volume":null,"pages":null},"PeriodicalIF":2.5,"publicationDate":"2009-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90006860","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper examines the relationship between performance and CEO turnover in Spanish listed and large unlisted firms for the period 1998-2004. Following the Bover and Arellano (1997) approach, we carry out a dynamic binary choice model where the decision to replace a CEO includes lags of the dependent variable, previous performance, and previous changes in the chairman position as endogenous determinants of this governance intervention. We find that for both listed and unlisted firms, previous performance changes are negatively correlated with CEO turnover. Furthermore, listed and unlisted firms follow different paths when taking decisions linked to CEO replacements: whereas unlisted firms are less likely to replace a recently hired CEO, listed companies appear more impatient. Finally, ownership concentration and the presence of banks are also important determinants of CEO turnover decisions, but only for listed firms. Our results give support to the growing call by academics who highlight the importance of controlling endogeneity to correctly examine the determinants of governance interventions.
{"title":"Endogenously Determined CEO Turnover: The Struggle for Continuance in Listed and Unlisted Firms","authors":"Esteban Lafuente, Miguel García-Cestona","doi":"10.2139/ssrn.1425304","DOIUrl":"https://doi.org/10.2139/ssrn.1425304","url":null,"abstract":"This paper examines the relationship between performance and CEO turnover in Spanish listed and large unlisted firms for the period 1998-2004. Following the Bover and Arellano (1997) approach, we carry out a dynamic binary choice model where the decision to replace a CEO includes lags of the dependent variable, previous performance, and previous changes in the chairman position as endogenous determinants of this governance intervention. We find that for both listed and unlisted firms, previous performance changes are negatively correlated with CEO turnover. Furthermore, listed and unlisted firms follow different paths when taking decisions linked to CEO replacements: whereas unlisted firms are less likely to replace a recently hired CEO, listed companies appear more impatient. Finally, ownership concentration and the presence of banks are also important determinants of CEO turnover decisions, but only for listed firms. Our results give support to the growing call by academics who highlight the importance of controlling endogeneity to correctly examine the determinants of governance interventions.","PeriodicalId":47599,"journal":{"name":"European Journal of Finance","volume":null,"pages":null},"PeriodicalIF":2.5,"publicationDate":"2009-06-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73173553","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Les rachats d'actions sont autorises depuis plus de quinze ans en Suisse. Cet article propose une analyse des rachats dans le contexte institutionnel, fiscal et juridique helvetique. Apres avoir decrit les principales techniques de rachat a disposition des entreprises et les objectifs vises par une telle operation, ce travail analyse l'effet des rachats sur les ratios financiers et la valeur de l'entreprise dans un cadre theorique classique. Il montre notamment que, contrairement a ce que pensent certains professionnels, un rachat n'augmente pas mecaniquement les ratios financiers mais a plutot tendance a les faire baisser. Un rachat a generalement aussi un impact negatif sur la valeur de l'entreprise. La derniere partie de cet article se penche sur les pratiques des entreprises suisses en matiere de rachats, montrant a cette occasion que le contexte institutionnel et fiscal joue un role preponderant.
{"title":"Les Rachats d'Actions en Suisse: Objectifs, Conséquences et Pratiques","authors":"P. Dumont, Dušan Isakov","doi":"10.2139/SSRN.1417790","DOIUrl":"https://doi.org/10.2139/SSRN.1417790","url":null,"abstract":"Les rachats d'actions sont autorises depuis plus de quinze ans en Suisse. Cet article propose une analyse des rachats dans le contexte institutionnel, fiscal et juridique helvetique. Apres avoir decrit les principales techniques de rachat a disposition des entreprises et les objectifs vises par une telle operation, ce travail analyse l'effet des rachats sur les ratios financiers et la valeur de l'entreprise dans un cadre theorique classique. Il montre notamment que, contrairement a ce que pensent certains professionnels, un rachat n'augmente pas mecaniquement les ratios financiers mais a plutot tendance a les faire baisser. Un rachat a generalement aussi un impact negatif sur la valeur de l'entreprise. La derniere partie de cet article se penche sur les pratiques des entreprises suisses en matiere de rachats, montrant a cette occasion que le contexte institutionnel et fiscal joue un role preponderant.","PeriodicalId":47599,"journal":{"name":"European Journal of Finance","volume":null,"pages":null},"PeriodicalIF":2.5,"publicationDate":"2009-06-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89738114","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper examines the effect of a company’s unfunded pension liabilities on its stock market valuation. Using a sample of UK FTSE350 firms with defined benefit pension schemes, we find that although unfunded pension liabilities reduce the market value of the firm, the coefficient estimates indicate a less than one-for-one effect. Moreover, there is no evidence of significantly negative subsequent abnormal returns for highly underfunded schemes. These results suggests that shareholders do take into consideration the unfunded pension liabilities when valuing the firm, but do not fully incorporate all available information.
{"title":"Pension Fund Deficits and Stock Market Efficiency: Evidence from the United Kingdom","authors":"Ian Tonks, Weixi Liu","doi":"10.2139/ssrn.1427227","DOIUrl":"https://doi.org/10.2139/ssrn.1427227","url":null,"abstract":"This paper examines the effect of a company’s unfunded pension liabilities on its stock market valuation. Using a sample of UK FTSE350 firms with defined benefit pension schemes, we find that although unfunded pension liabilities reduce the market value of the firm, the coefficient estimates indicate a less than one-for-one effect. Moreover, there is no evidence of significantly negative subsequent abnormal returns for highly underfunded schemes. These results suggests that shareholders do take into consideration the unfunded pension liabilities when valuing the firm, but do not fully incorporate all available information.","PeriodicalId":47599,"journal":{"name":"European Journal of Finance","volume":null,"pages":null},"PeriodicalIF":2.5,"publicationDate":"2009-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81133781","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：