The Indirect Relation between Corporate Governance and Financial Stability

AbstractIn the wake of last crises, there is an increased awareness regarding the role of a sound corporate governance framework for enhancing the financial stability. We believe, however, that the relationship between corporate governance and financial stability is an indirect one; companies are not obliged to pursue financial stability unless specific legislation or regulations require it. Interestingly, having such targets, large firms, especially those operating in the financial system, can lead to systemic risks, supporting financial contagion. Classical problems of corporate governance such as top management compensation, board composition, and independence of the director, agent theory or the correct valuation are problems envisaged to be analyzed when assessing how they affect financial stability

From the Financial Crisis to the Real Economy: the main channels of transmission through a theoretical perspective

In the financial sector, due to the structure of the involved companies, the sophisticated network of exposures among institutions, the related credibility problems and the inter-temporal character of financial contracts contagion phenomenon is hence considered a noteworthy topic in the scientific discussions. Understanding the transmission channels that exist between the financial and real sectors of the economy is critically important when assessing financial stability and economic growth. Identifying three categories of transmission channels (the interest rate channel, the wealth effect, and the financial accelerator) that exist between the financial and the real sector, this paper comment the literature on this issue and present some original observations. The current financial crisis by tighten the financing conditions, by falling houses’ and financial assets’ prices, by damaging growth prospects, has a devastating negative impact on the financial situation of firms and households

A FORAY INTO THE TANGLE OF GLOBALIZATION MEASUREMENT

The concerns over globalization and its impact on the different aspects of life amplified over the recent years and generated the need to measure this phenomenon so as to know its effects and to get prepared to manage them. This paper makes a critical presentation of the main indicators that measure the phenomenon of globalization and selected one indicator, seemingly the most comprehensive, and applied it to Romania in order to see its rank when comparing with other countries, according to the values of the indicator and its components

The behavior of the Bucharest Stock Exchange during the current financial markets crisis and proposed measures for its sustainable development

Our day to day study of the Romanian stock market during the period July 2007 – September 2009 revealed in many cases a specific behavior. Although all the emerging markets from the region evolved in correlation with the more established exchanges, the negative impact of the crisis on our exchange was in many aspects deeper and more powerful than it should have been if we look at the actual macro and micro economic situation, considering the empirical evidence that the capital market is positively correlated with the long term economic growth. We think that this overreaction to the negative side is the direct result of the lack of maturity of our local exchange (in terms of capitalization, liquidity, participants, legislation and surveillance) and we propose a few measures that are supposed to render a sustainable development and may improve its stability during times of financial turbulences

Ongoing Trends for Central Banks’ Strategy

The post-crisis challenges for central banks are the effect of deeper imbalances reflected both by the severity of the recession period after the global financial crisis and the subsequent persistently anaemic recovery, and by the unbalanced post-crisis policy- mix, which has left the task to manage this burden to the monetary policy. In the last decade, there has been a change in the position of central banks conduit, from an offensive one, driven by the important role played by these institutions in managing the adverse effects of the global financial crisis, to a defensive one, as an accommodation to the circumstances created by the complexity of the post-crisis challenges. This article aims at identifying options for the monetary policy strategy in the future, starting from highlighting the post-crisis adjustments of central banks’ monetary policy

A Comparative Analysis of Macroprudential Policy across Euro Area Candidate Countries

Concerns to setting an appropriate overall macroprudential policy framework have taken shape at local, regional, and global level since the onset of the global financial crisis. At regional level, a particular case is that of the European Union, given the national-supranational relationship specific to this economic region. The article aims to identify the macroprudential policy condition of the Euro Area candidate countries, by using an index built on some criteria that describe on the one hand, the capacity of macroprudential policy governance and the “activism” of macroprudential authority, and, on the other hand, the degree of compliance with the European Systemic Risk Board (ESRB) recommendations for national macroprudential authorities, given that the countries under review are member states of the European Union. Our findings show that the Euro Area candidate countries have quite different macroprudential policy features, both in terms of its governance and in terms of the “convergence” towards ESRB recommendations. Although the analysis should be extended by adding other relevant criteria, we can assert that it offers an overview of the potential role of the national macroprudential policy as a shock-absorber instrument in the perspective of a future accession to the Euro Area

THE BEHAVIOR OF THE BUCHAREST STOCK EXCHANGE DURING THE CURRENT FINANCIAL MARKETS CRISIS AND PROPOSED MEASURES FOR ITS SUSTAINABLE DEVELOPMENT

Our day to day study of the Romanian stock market during the period July 2007 – September 2009 revealed in many cases a specific behavior. Although all the emerging markets from the region evolved in correlation with the more established exchanges, the negative impact of the crisis on our exchange was in many aspects deeper and more powerful than it should have been if we look at the actual macro and micro economic situation, considering the empirical evidence that the capital market is positively correlated with the long term economic growth. We think that this overreaction to the negative side is the direct result of the lack of maturity of our local exchange (in terms of capitalization, liquidity, participants, legislation and surveillance) and we propose a few measures that are supposed to render a sustainable development and may improve its stability during times of financial turbulences.contagion; correlation; financial crisis; emerging capital markets

Scheduling of Hard Real-Time Multi-Thread Periodic Tasks

In this paper we study the scheduling of parallel and real-time recurrent tasks. Firstly, we propose a new parallel task model which allows recurrent tasks to be composed of several threads, each thread requires a single processor for execution and can be scheduled simultaneously. Secondly, we define several kinds of real-time schedulers that can be applied to our parallel task model. We distinguish between two scheduling classes: hierarchical schedulers and global thread schedulers. We present and prove correct an exact schedulability test for each class. Lastly, we also evaluate the performance of our scheduling paradigm in comparison with Gang scheduling by means of simulations

Development of Nominal Convergence Indicators in New Member States of European Union under the Challenges of Economic and Financial Crisis

The importance of compliance with nominal convergence criteria is crucial for adopting the euro in New Member States (NMS).Although some of these countries have made remarkable efforts for complying with nominal criteria, structural and conjunctional macroeconomicimbalances have created big problems in this respect. Also, the global financial crisis revealed new challenges for the NSM which are not yetmembers of the euro area. Having imbalances widened further much more than the countries in the euro area, many of them have come to appreciatethe protection of the euro area membership, especially at times of financial and economic crises. Though, some NMS would like to speed up euroadoption, they now face conditions that may make it more difficult for them to satisfy the requirements of the nominal convergence criteria. Thus, inthis article we try to capture the effects of economic and financial crises on the nominal convergence indicators in NMS