Systemic risk arises when shocks lead to states where a disruption in financial intermediation adversely affects the economy and feeds back into further disrupting financial intermediation. We present a macroeconomic model with a financial intermediary sector subject to an equity capital constraint. The novel aspect of our analysis is that the model produces a stochastic steady state distributi...

OBJECTIVE Scanty and controversial information is available on the impact of macroeconomic fluctuations on smoking behaviour. No study has quantified the effects of fiscal crises on smoking prevalence. This study aimed to investigate the effects of the 2007-2008 economic crisis on smoking prevalence and number of smokers in the USA. METHODS Using data from the repeated Behavioural Risk Factor...

This paper studies the relationship among corporate governance, risk taking and financial performance at bank holding companies’ (BHCs) during the financial crisis of 2008. While the paper did not find a significant relationship between corporate governance and risk-taking level, it shows that BHCs with lower risk performed better than BHCs with higher risk during the crisis. The results sugges...

We examine how firms adjusted their open innovation strategy in response to the 2008 global financial crisis. While previous research has analysed advantages, drawbacks, and methods of innovation, less is known about adjust major economic shocks. Guided by theories organisational learning behavioural theory firm, we impact demand shock on firm openness external knowledge. To test our hypotheses...

These notes provide an introduction to modeling with copulas. Copulas are the mechanism which allows us to isolate the dependency structure in a multivariate distribution. In particular, we can construct any multivariate distribution by separately specifying the marginal distributions and the copula. Copula modeling has played an important role in finance in recent years and has been a source o...

The US real estate bubble's deflation marked the beginning of financial crisis in 2008. On September 15, 2008, investment bank Lehman Brothers went bankrupt, sparking a widespread global banking crisis. With several institutions failing and assets sharply declining, swiftly extended to whole system. quickly turned into economic disaster that affected Europe rest globe. was directly brought on b...

Article history: Received 27 September 2011 Received in revised form 15 January 2012 Accepted 17 January 2012 Available online 28 January 2012 This paper investigates the influence of corporate governance on financial firms' performance during the 2007–2008 financial crisis. Using a unique dataset of 296 financial firms from 30 countries that were at the center of the crisis, we find that firms...