In this paper, we analyse the relation between financial system and financial crises. Our goal is to find how, on the one hand, changes in the financial system affect the prospects for financial crises and, on the other hand, how the occurrence of financial crises shape the core elements of the financial system. We start by defining the financial crisis from three different perspectives. After it, we present the comprehensive history of financial crises that will allow us to continue by drawing some common patterns that are universal. Universal patterns in crises give us the ground for contemplating on some universal policy responses where we again follow different approaches. Taking into account the specifics of modern times and using the young and promising economy based on the blockchain, we are asking the question is this time different?. Analysis of initial development steps in the digital, trustless world gives us the basis for drawing parallels with the reality and the history. Our results suggest that there are many similarities throughout history and between the real and digital world. Instead of providing an exact answer on the question is this time different we conclude that there is a present strong feeling of Deja vu.

Purpose - The study sought to examine the liquidity linkages between the South African bond and equity markets before the global financial crisis in 2008. Design/methodology/approach: The window of observation covered the period January 2000 to September 2008. In order to ensure robustness in the estimation, the study used foreign participation in the various markets as an additional measure of liquidity. The other liquidity measures considered in the study were volume and value traded of the various securities respectively. Time series modeling techniques were used in the estimation. An unrestricted vector autoregressive (VAR) model was estimated following which the standard innovation accounting techniques, impulse response functions and forecast error variance decompositions were applied. In the empirical analysis, the Granger-causality between the two markets was also used. Findings - While all the liquidity measures suggest the existence of linkages between the bond and equity markets, the direction of causality was found to be unidirectional from equity to the bond market using the volume and value measures. On the other hand, the foreign participation measure of liquidity suggests bi-directional causality. The study also provides evidence of long run relationship between key macroeconomic variables such as inflation, exchange rate and interest rate on one hand and liquidity in the debt and equity markets on the other. As empirical findings indicates that the linkages in liquidity between these markets positive, this consistent with studies conducted by Chordia et al (2003 & 2005) and Engsted and Tanggaard (2000) who found the relationship was a positive one. When volumes of trade and trade values, the study find evidence on uni-directional causality and strong bi-directional causality is evidence when foreign investor participation is used as a liquidity measure. In summary, there is a strong evidence liquidity linkage between the bond and equity market from the empirical results.

M.Com. (Financial Economics) / This paper studies the efficacy of bank bailouts in restoring financial stability during financial crises. Stability is measured in terms of stock market volatility. The volatility dynamics associated with banking crises in South Korea, Malaysia, Indonesia, Thailand, and the United States (US) are investigated. Using daily returns data from 1 January 1997 to 8 October 2012, two specific methods are used to measure the impact of bailouts on financial stability. Firstly, dummy variables that account for the timing of bailout policies are included in the variance equation of Exponential Generalised Autoregressive Conditional Hetereoskedasticity (EGARCH) models that are estimated for the overall stock market index of each of the affected countries. Secondly, EGARCH models are estimated using 30-day rolling windows in order to control for shifts in unconditional volatility that may result from bailouts. The Spearman Rank-Order correlation test is used to assess the rank-order relationship between the EGARCH 30-day rolling window conditional volatility and actual volatility, which is estimated as a 30-day moving average of squared returns. Three main findings form the conclusion of this study. The first is that, in some cases, bailouts are successful in reducing volatility in some of the East Asian and US stock markets. Secondly, although the creation of centralised asset management companies and the implementation of guarantees of liabilities as bailout policies are effective at reducing volatility in the East Asian markets, closures of, and interventions in, banks and other financial institutions, liquidity support, and capital support are not effective in reducing volatility in the East Asian markets. This illustrates that different bailout policies have different impacts on volatility. Finally, although bailout policies reduce volatility, liquidity support, and capital support, bailout policies are more effective at reducing volatility in the United States than in the East Asian countries. This illustrates that the same bailout policies cannot be used in different types of economies, namely developed and developing economies, with the hope of the same outcome being realized.

The financial crises experienced worldwide have contributed to the rising importance of corporate governance. South Africa is unique in that it has strong corporate governance structures and as a result, it would prove useful to assess the effects of these corporate governance structures on critical sectors such as the long-term insurance industry, which is the largest insurance industry in Africa. The objective of this study is to examine the effect of corporate governance mechanisms and firm efficiency in the South African long-term insurance industry using data on 73 long-term insurers from 2007 to 2014 in a two-stage analysis. In the first stage, firm efficiency is estimated using the data envelopment analysis (DEA) bootstrapping technique of Simar and Wilson (2007), which corrects for biases associated with non-parametric techniques. In the second stage analysis, the truncated bootstrapping regression technique is employed to examine the effect of corporate governance on the estimated efficiency scores. The corporate governance variables used were board size, board independence, audit committee size, CEO tenure and audit independence, while controlling for firm size, reinsurance usage and leverage. The findings indicate that long-term insurers in South Africa operated at approximately 21% of their optimal capacity which suggests high levels of inefficiency in the provision of life insurance services. The results of the second-stage analysis identify board size, non-executive directorship, CEO tenure and audit independence as the significant corporate governance indicators that impact on efficiency over the study period. In addition, firm size, reinsurance usage and leverage were also observed to be significantly related to the estimated efficiency scores. The findings suggest that non-executive directors are not as effective as expected, which may be due to a myriad of reasons, such as under-representation on sub-committees, a lack of relevant skills, experience or financial expertise. Insurers should use more stringent criteria to screen potential non-executive directors and provide training and regular updates to adequately capacitate the non-executive directors with the necessary skills and knowledge. The positive relationship between CEO tenure and efficiency suggests that frequent CEO rotation is not advisable. Most of the corporate governance indicators have a negative effect on efficiency, which is not the intended effect. This is an indication that corporate governance measures should not be viii enforced on insurers as a 'one size fits all’ measure, rather, a focus should be placed on corporate governance measures that have the intended impact, such as audit committee independence.

The 2008 global financial crisis was a rude awakening for financial regulators. In its wake, a novel approach called macroprudential policy became an important pillar of financial regulation. But in the years after the crisis, the stringency of macroprudential policy outputs vary across countries, across specific financial sectors, and across time, a worrying reality given that uneven regulation across borders and sectors was one of the exacerbating factors of the 2008 crisis. What explains this cross-country, cross-sectoral and cross-temporal variations in macroprudential policy? This dissertation argues that when the political salience of financial regulation is high, politicians are more likely to intervene in regulatory affairs to impose their policy preferences. But in times when salience is low, it is the policy orientation of the regulators – the “tamers of finance” – that primarily shape the stringency of macroprudential policy. In institutional settings with multiple financial regulators who hold conflicting policy orientations, this bureaucratic tension is likely to increase policy stringency. This theoretical framework is tested through an in-depth comparative historical analysis of the banking and asset management sectors in the United States and Japan. In the US banking sector, regulators to impose highly stringent macroprudential policies in the aftermath of the 2008 crisis, but they began to loosen these policies at the margins from 2017. The US asset management sector, on the other hand, was characterized by policies of moderate stringency in the wake of the crisis, and again after 2014. In the Japanese banking case, the crucial financial crisis for determining macroprudential policy outcomes came not in 2008 but in the late 1990s, when the government was compelled to contain a banking crisis and implemented highly stringent policies. After 2008, therefore, Japanese regulators could afford to implement policies of only moderate stringency. Finally, the Japanese asset management sector remains untouched by macroprudential policy because both politicians and regulators gradually deregulated and liberalized to this sector, which historically struggled to grow, and have not felt the need to enact macroprudential policies. In all, this analysis broadly confirms the theoretical framework set forth in this dissertation. / Political Science

This dissertation examines the social construction of American federal bankruptcy law from the Gilded Age to the post-World War II Era. Across the nineteenth century, federal legislators vociferously debated whether a federal bankruptcy statute would facilitate the extension of business credit across state lines or be employed by creditors to oppress small traders, farmers, and wage earners. After the law’s enactment in 1898, however, this debate largely disappeared. By the period following the Second World War, bankruptcy was an accepted means for working class debtors to obtain debt relief, either immediately or after paying their creditors out of their future wages. Across four chapters, I explore the factors associated with this shift. How did bankruptcy become an accepted part of the American political economy and welfare state? To answer these questions, I analyze new samples of census-linked bankruptcy petitions in comparison with survey data on working class debtors, a corpus of Congressional speech and media, and archival data on relevant policy actors. Social reformers’ efforts to create “fair” credit markets through Small Loan Laws (SLL), alongside rising bankruptcy rates, ultimately naturalized a conception of bankruptcy as morally “caused” by debtors, apart from creditor choices or malfeasance. As SLLs reduced real interest rates, they also led lenders to collateralize their relative risks through extending credit in states where it was legal to garnish debtors’ wages. In doing so, SLLs inadvertently spurred credit extension based on wages rather than property. The conception that debtors “caused” bankruptcy, in turn, led Great Depression Era legislators to focus on delineating who was “deserving” of bankruptcy protections and how insolvent individuals could prove their future “creditworthiness” and reenter financial markets. The 1938 Bankruptcy Act established a voluntary wage-earner payment system (Chapter XIII) for “deserving” white men while also formalizing provisions for immediate debt discharge (Chapter VII). Yet when few wage earners decided to “honorably” pay their debts over time, judicial actors in post-World War II America employed Chapter XIII bankruptcy as a debt collection system that reduced lenders’ risks against “undeserving” bankrupts. As Black people increasingly sought debt relief through bankruptcy protections, they were directed to Chapter XIII, irrespective of their economic interests. These payment plans increased the time and money that Black bankrupts needed to pay in order to regain their economic citizenship.

No

The current economic crisis has affected all aspects of life, which has resulted in political instability, personal financial troubles, and a growing number of business bankruptcies. While these are serious issues, simply developoing a government policy that injects an economy with money is not an appropriate means to achieve economic recovery and long-term economic development unless combined with an effective and efficient governing system. The present research studies whether the strong relationship between governance and growth exists during economic crises or only during non-crisis periods. The results of the current research show that the global economic crisis has had an influence on the relationship between governance and economic growth. In addition, this study found that different levels of development affect the relationship between governance and growth differently during times of crisis. Consequently, the results of the current research show the instability in the relationship between governance and economic growth during the economic crisis ; this unsteadiness is a sign of the need for long-term strategies to promote global and national good governance practices that are not adversely affected by crises. / by Bassam A. Albassam. / Thesis (Ph.D.)--Florida Atlantic University, 2012. / Includes bibliography. / Mode of access: World Wide Web. / System requirements: Adobe Reader.

Cheng Wing Yan. / Thesis (M.Phil.)--Chinese University of Hong Kong, 2002. / Includes bibliographical references (leaves 115-122). / Abstracts in English and Chinese. / Abstract --- p.i-ii / Acknowledgements --- p.iii / Table of Contents --- p.iv / List of Tables --- p.v / List of Figures --- p.vi-vii / List of Charts --- p.viii / Chapter Chapter 1. --- Introduction --- p.1 / Chapter Chapter 2. --- Literature Review --- p.4 / Chapter Chapter 3. --- Methodology --- p.8 / Chapter Chapter 4. --- Data Description --- p.18 / Chapter Chapter 5. --- Empirical Results --- p.29 / Chapter 5.1 --- Simple Regression Results --- p.29 / Chapter 5.2 --- Structural Break Test Results --- p.31 / Chapter 5.3 --- Regression Results for Housing Attributes' Coefficients on Macroeconomic Variables --- p.32 / Chapter Chapter 6. --- Conclusion --- p.34 / Appendix 1. Limitation --- p.35 / Appendix 2. Tables --- p.37 / Appendix 3. Figures --- p.77 / Appendix 4. Charts --- p.107 / Appendix 5. Regression Results for Housing Attributes from Literature --- p.113 / Bibliography --- p.115

漲跌停制度是一種意圖控制股市價格大幅波動的強制性政策。雖然漲跌停制度被很多國家都採用，但是關於該制度的效果的結論一直都是具有很大爭議性。除此之外，之前的一些研究還表明在不同國家的股票市場中，漲跌停制度的效果也是不一樣的。然而，作為一個獨特且年輕的股票市場，中國A股市場也擁有漲跌停制度，但是關於它的效果的研究卻很稀缺。其中，關於在特殊經濟狀況下，例如金融危機，漲跌停的效用基本上沒被研究過。這是一個很重要的研究課題，因為金融危機這種特殊經濟時期會引起股市的大幅波動，這正是漲跌停制度發揮作用也是我們研究其效果的最佳時機。因為以上原因，這篇論文的主題就是挖掘中國A股的漲跌停制度在金融危機時期的效果，我們希望檢驗是否金融危機引起的特殊市場氛圍會使漲跌停的效果與平常不同。我們將一種改進的關於漲跌停效果的經典方法應用於金融危機期間的股票交易數據上，來對三個假設（波動性溢出, 延遲價格發現和妨礙交易）進行檢驗。相比與之前的方法，我們進行了改進，主要是採用了以漲跌停價格收市和包含了連續漲跌停的數據。 / 此外，爲了更好滴瞭解漲跌停制度的效果，我們還對那些在金融危機期間容易漲跌停的股票研究其主要特點。在本論文中，我們除了引進每個股票的基本面指標，還引進了具有中國特色的因子，包括國有股份和行業等因子，通過廣義（GMM）的方法來進行分析。這些股票特徵希望能夠為於證監會將來制定漲跌停制度和投資者在金融危機期間于中國的投資提供一定信息。 / Price limit is a policy originally utilized to control extreme price movements in stock markets. As a widely adopted policy in numerous countries, price limit has led to several debates regarding its effects on stock markets. Moreover, previous studies have shown that price limit has different effects on different markets and time periods. However, the effects of the price limit system in the Chinese A-share market, a unique and young stock market, has yet to be fully investigated. Furthermore, few works have studied the price limit during special economic conditions, such as financial crises, which should be the best time for price limit to play its role. Additionally, these conditions are the most ideal times at which to test the effects of the price limit. Motivated by these conditions, this thesis explores the effects of price limits on the Chinese A-share stock markets during financial crises in order to examine whether the market atmosphere of investor sentiment caused by special economic conditions has varied impacts on the effects of price limits. By employing the recognized methods, this thesis aims to test the three hypotheses of volatility spillover, delayed price discovery, and trading interference using stock data during financial crisis. Compared with previous studies, this thesis empirically analyzes the effects of price limits with our improved methodology of utilizing closing-hitting observations. / To gain a better understanding of the price limit’s effect, this thesis also investigates the characteristics of stocks that hit the price limits more frequently under this special economic condition. In this study, the Generalized Method of Moments regression model is utilized by introducing financial indicators for each individual stock and some special factors in the Chinese A-share markets, such as state-owned share and industries. Identifying the characteristics of stocks that frequently hit the limit can provide some information to investors when financial crises occur in the Chinese A-share markets. / Detailed summary in vernacular field only. / Detailed summary in vernacular field only. / Wang, Dingyan. / Thesis (M.Phil.)--Chinese University of Hong Kong, 2013. / Includes bibliographical references (leaves 54-55). / Abstracts also in Chinese. / Abstract --- p.3 / Acknowledgement --- p.6 / Chapter 1 --- Introduction --- p.11 / Chapter 1.1 --- Introduction --- p.11 / Chapter 2 --- Background --- p.16 / Chapter 2.1 --- Background of Chinese Stock Markets --- p.16 / Chapter 2.2 --- Literature Review --- p.19 / Chapter 3 --- Effects of Chinese A-Share Price Limits --- p.22 / Chapter 3.1 --- Data --- p.22 / Chapter 3.2 --- Improvement of Methodology --- p.25 / Chapter 3.3 --- Empirical Analysis --- p.26 / Chapter 3.3.1 --- Test of the Volatility Spillover Hypothesis --- p.27 / Chapter 3.3.2 --- Test of the Delayed Price Discovery Hypothesis --- p.36 / Chapter 3.3.3 --- Test of the Trading Interference Hypothesis --- p.38 / Chapter 4 --- Characteristics of Stocks that Hit the Limit --- p.46 / Chapter 4.1 --- Characteristics of Stocks that hit the limit during the Financial Crisis --- p.46 / Chapter 5 --- Conclusions --- p.52 / Chapter 5.1 --- Conclusions --- p.52 / Bibliography --- p.54