The immeasurable potential productivity and high-growth characters contained in Internet Economy attract financial industry to develop internet financial service promptly, which will be mainstream tendency in this century. It has changed the function of traditional financial company and the structure of financial organization. Electronic money has also made the central bank loss the money suppl...

In this paper we show that a non-monotonic relationship links certain structural characteristics of the banking market to financial stability, including the number of banks in the market, the branching decisions and branch productivity. Using a non-dynamic panel threshold regression we explain how financial stability is affected by baking market power when market power is subject to one or more...

2 Abstract Recent research on financial market development has focused on the nature of the legal system. The law and finance literature, however, exclusively focuses on the abuse of management power as a major cause of shareholder expropriation. We examine the role of the administrative capability of the state in providing and guaranteeing the institutional foundations for securities developme...

The paper examines the causal nexus between financial development and economic growth in India in a multivariate VAR model. The empirical analysis is based on cointegration and causality test. The cointegration test finds the presence of long run equilibrium relationship between financial development and economic growth. The Granger causality test finds the existence of bidirectional causality ...

The bid /ask spread (inverse of liquidity) in turbulent financial markets—modeled theoretically—adjusts to market-makers’ average costs. Market liquidity declines (spread increases) with increasing absolute value of market-makers’ security inventories and volatility of security price and order flow.  2002 Elsevier Science B.V. All rights reserved.

This paper analyzes the effects of financial market globalization on the crosscountry pattern of development in the world economy. To this end, it develops a dynamic macroeconomic model of imperfect credit markets, in which the domestic investment becomes borrowing-constrained at the lower stage of development. In the absence of the international financial market, the world economy converges to...

The research results which are presented in this paper aimed to verify the theory which claims that there is a significant relationship between financial market integration on international scale, financial development and economic growth. Our research focused not on the entire financial market but on the segment of equity securities (shares and investment certificates) and debt securities (cor...

The stock market crash of 1987 sent shock waves through the world's financial markets. Stock exchanges in New York, Chicago, London, Tokyo, Frankfurt, and a host of other cities suffered major declines. In response, credit markets, commodity markets, and foreign exchange markets registered sharp swings. Not since the Great Depression had the world seen such turmoil in financial markets. But, dr...