4,544 research outputs found

    Essays on Risk Creation in the Banking Sector

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    This thesis consists of four essays exploring risk creation in the banking sector. The essays examine how conflicting interests can compromise the objectivity, judgment, and decision making of economic agents. Consequently, they may prioritize their personal or institutional interests over the best interests of others or the entire financial system. Chapter 2 delves into the conflict of interest that arises when a bank serves as an investor in the stock market. Chapter 3 revisits the discussion of the potential misalignment between sovereign incentives and the collective interests of the currency union, particularly in the bond market. Chapter 4 draws attention to a situation where regulations in the banking sector may be advantageous for a government in the sovereign bond market. Finally, Chapter 5 looks at the flip side of the coin, examining how banks may be susceptible to moral hazard concerns in their FX lending decisions, given that they do not fully bear the consequences of their actions

    LIPIcs, Volume 251, ITCS 2023, Complete Volume

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    LIPIcs, Volume 251, ITCS 2023, Complete Volum

    Spectrum auctions: designing markets to benefit the public, industry and the economy

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    Access to the radio spectrum is vital for modern digital communication. It is an essential component for smartphone capabilities, the Cloud, the Internet of Things, autonomous vehicles, and multiple other new technologies. Governments use spectrum auctions to decide which companies should use what parts of the radio spectrum. Successful auctions can fuel rapid innovation in products and services, unlock substantial economic benefits, build comparative advantage across all regions, and create billions of dollars of government revenues. Poor auction strategies can leave bandwidth unsold and delay innovation, sell national assets to firms too cheaply, or create uncompetitive markets with high mobile prices and patchy coverage that stifles economic growth. Corporate bidders regularly complain that auctions raise their costs, while government critics argue that insufficient revenues are raised. The cross-national record shows many examples of both highly successful auctions and miserable failures. Drawing on experience from the UK and other countries, senior regulator Geoffrey Myers explains how to optimise the regulatory design of auctions, from initial planning to final implementation. Spectrum Auctions offers unrivalled expertise for regulators and economists engaged in practical auction design or company executives planning bidding strategies. For applied economists, teachers, and advanced students this book provides unrivalled insights in market design and public management. Providing clear analytical frameworks, case studies of auctions, and stage-by-stage advice, it is essential reading for anyone interested in designing public-interested and successful spectrum auctions

    Price formation in Local Electricity Markets

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    From disclosure to transparency - Essays on firms' voluntary disclosure in a transforming environment

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    This cumulative thesis is based on three articles. In the first paper, I investigate firms' greenhouse gas emission disclosure strategies. The results show the potential existence of different disclosure equilibria, which implies different disclosure patterns in different industries. I further identify that disclosure mandates may have an adverse effect on firms' abatement incentives and even their total emissions. In the second paper, I propose a model to investigate firms’ signaling decisions on the product level. In the third paper, my coauthors and I investigate the potential and limits of privacy-preserving corporate blockchain applications for information provision. We show that blockchain technology can improve the information environment and outperform traditional institutions. However, we also characterize an adverse mixed-adoption equilibrium in which neither of the two channels realizes its full potential and information provision declines not only for individual firms but also in aggregate

    Understanding How the Flash Clashes are Affected in an Asymmetric Informational Market with Agent-based Modelling

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    This thesis explores the impact of flash crashes on the dynamics of financial markets with asymmetric information. We built, implemented, and analysed an agent-based model of an extended information-sequential trading framework inspired by the models of Das and Glosten-Milgrom, where an exogenous fake shock is added into the system to disturb the actions of some traders where there is informational asymmetry. The key modelled agents include fundamental traders, who place orders at preferred prices; zero-intelligence traders, who place orders randomly; a market maker, who provides liquidity; and an exchange matching all orders under continuous auctions or batch auctions. To this end, by Monte-Carlo methods, we implement the model and examine the dynamics of the market under information asymmetry in the following aspects: the market structure, market risk, the network topology of agents and market mechanisms. Our results demonstrate that, an uninformed fundamental trader (UFT) in a messy network is highly likely to suffer a major loss due to the significant price crash in a strongly UFT-dominated market (the informed traders only account for less than 20%), in which case the market efficiency is also negatively affected; Applying batch auctions helps reallocate the profits among the agents to reduce the information advantage between informed and uninformed traders, but it has limited effect on mitigating flash crashes; Building an information-sharing connection between agents is effective to reducing flash crashes and narrows the information advantage gap between informed and uninformed traders, but a complete network with full information exposure could mislead uninformed traders to make biased decisions. These findings generated by an agent-based simulation model give us insights into real-world financial markets under asymmetric information, and the framework proposed in this thesis can be extended for future studies of asymmetric-information markets

    Online reverse auctions research in marketing versus SCM: A review and future directions

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    An online reverse auction (ORA) is a dynamic procurement mechanism that allows suppliers to compete in real time via a platform to gain a buyer’s business. The ORA is a technological tool introduced in the late 1990s, gaining proponents and detractors among practitioners and academics. Remarkably, while practitioner interestin ORAs has grown, related marketing and supply chain management (SCM) research has declined. This contradiction between theory and practice suggests the need to conduct a systematic review to provide readers with a state-of-the-art understanding of ORAs and recommend fruitful avenues for further research. We focus on the marketing literature and contrast the findings with SCM literature, in such an analysis practical relevance is stressed. Our study offers three main contributions: (1) integration of the cumulative marketing knowledge on ORAs in the 2002–2020 period, (2) development of a three-layer framework of the ORA domain (i.e., conceptualization, ORA as a process, and research setting), and (3) construction of a new research agenda to deal with scholarly challenges and emerging trends.Xunta de Galicia | Ref. GPC ED431B 2022/10Universidade de Vigo/CISU

    Current issues of the management of socio-economic systems in terms of globalization challenges

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    The authors of the scientific monograph have come to the conclusion that the management of socio-economic systems in the terms of global challenges requires the use of mechanisms to ensure security, optimise the use of resource potential, increase competitiveness, and provide state support to economic entities. Basic research focuses on assessment of economic entities in the terms of global challenges, analysis of the financial system, migration flows, logistics and product exports, territorial development. The research results have been implemented in the different decision-making models in the context of global challenges, strategic planning, financial and food security, education management, information technology and innovation. The results of the study can be used in the developing of directions, programmes and strategies for sustainable development of economic entities and regions, increasing the competitiveness of products and services, decision-making at the level of ministries and agencies that regulate the processes of managing socio-economic systems. The results can also be used by students and young scientists in the educational process and conducting scientific research on the management of socio-economic systems in the terms of global challenges

    Exploring the Impact of First-Time ESG Rating on Stock Price Informativeness and Liquidity : A Comparative Study of Rated and Non-Rated Firms 1n the US Stock Market

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    This thesis examines whether being covered by a ESG rating agency translates into moreinformative stock prices in the US stock market, and whether this enhancement of stock price informativeness impacts the stock liquidity of rated firms. By employing price nonsynchronicity as a proxy for stock price informativeness, our study reveals that ESG-rated firms exhibit a 4.3% higher level of price informativeness compared to non-rated firms. Additionally, our findings suggest that rated firms exhibit notable improvements in liquidity, as evidenced by a 3.5% reduction in the relative bid-ask spread and a 16.5% decrease in the Amihud illiquidity ratio. However, our analysis does not provide empirical evidence to suggest that the increase in liquidity is driven by the elevation of stock price informativeness. Overall, our research presents compelling evidence that rating agencies serve as dependable sources of ESG information in the US stock market, but not that this information itself plays a direct role in boosting stock liquidity.nhhma
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