The rise of international financial centres in bank-based and market-based financial systems
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DOIhttp://dx.doi.org/10.21511/bbs.13(4).2018.15
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Article InfoVolume 13 2018, Issue #4, pp. 161-172
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“International Financial Centres” (IFCs) such as London or New York are one of several contributing factors toward the continued economic success of their respective countries in the twentieth-century. Other countries have attempted to create their own IFCs with mixed successes. This study examines factors that might predict the appearance of IFCs and the differences in financial scale. Of particular interest is the debate between ‘bank-based’ versus ‘capital-based’ financial systems and how it impacts the growth and success of IFCs. Results suggest that bank-based systems are marginally more effective at promoting and benefitting from IFCs. Stronger financial market regulations are also positively associated with the growth of IFCs and the resulting benefits that they provide to the rest of the economy. Together, this suggests that the optimal policy mix to promote IFCs may involve some degree of government involvement beyond strictly maintaining free and fair financial markets for the private sector.
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JEL Classification (Paper profile tab)F21, G15, G28
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References58
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Tables3
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Figures2
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- Figure 1. Average total TMC and TBA of cities with at least one registered stock exchange and the ratio of TMC to country-GDP
- Figure 2. Average total TMC and TBA of cities with at least one registered stock exchange and percentage change in TMC from the previous ranked entry
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- Table 1. Probit regression of financial centre indicator against selected explanatory factors
- Table 2. The effect of financial centre status and other selected explanatory factors on GDP per capita and percentage of jobs in finance and business
- Table 3. The effect of Total Market Capitalisation, Total Bank Assets, and other selected explanatory factors on GDP per capita and percentage of jobs in finance and business
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Estimation of fintech market in Ukraine in terms of global development of financial and banking systems
Józef Antoni Haber
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Iryna D’yakonova ,
Ann Milchakova
doi: http://dx.doi.org/10.21511/pmf.07(2).2018.02
Public and Municipal Finance Volume 7, 2018 Issue #2 pp. 14-23 Views: 1620 Downloads: 372 TO CITE АНОТАЦІЯThis paper examines the fintech concept and fintech market structure. The theoretical and methodological approaches to the adaptation of the Ukrainian banking market to fintech in terms of globalization are investigated. The problems of Ukrainian banking system reforming after the national economy long-term recession are determined. Phases of technology development in the Ukrainian banking system are considered and fintech innovations in Ukraine are discovered.
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Spatial tale of G-7 and BRICS stock markets during COVID-19: An event study
Sanket Ledwani 
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Suman Chakraborty ,
Sandeep S. Shenoy
doi: http://dx.doi.org/10.21511/imfi.18(2).2021.03
Investment Management and Financial Innovations Volume 18, 2021 Issue #2 pp. 20-36 Views: 1183 Downloads: 496 TO CITE АНОТАЦІЯThe unprecedented outbreak of COVID-19 has affected every aspect of the human life, be it health, social, or economic dimensions. The anxiety and uncertainty wobbled the economies of affected countries worldwide. This study attempts to quantify the impact of COVID-19 on the performance of major stock markets of G-7 nations vis-à-vis BRICS nations. An event study methodology is employed to capture the effect of the systematic event in the form of Buy and Hold Abnormal Returns (BHAR) and Average Buy and Hold Abnormal Returns (ABHAR). The study considers a 90-day observation window, consisting of six sub-event windows after the COVID-19 news up-doves the world, and 120 days prior to the selected event date to estimate average expected returns. BHAR values in the four event windows are statistically significant, covering stock markets from panic and nosedive to their correction and recovery. ABHAR values reported are significantly negative in the event window ranging from –0.15% to –38.43% for G-7 and –0.06% to –37.12% for BRICS nations. Despite similar ABHAR trends, the BHAR values and correlation matrix exhibit a diverse reaction in BRICS nations compared to the highly synchronized reaction in the G-7 group of nations in the COVID period.
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The prestige of stock exchanges and corporate cash holding in transition economies: a study on Vietnamese listed firms
Do Thi Thanh Nhan , Ngo Minh Vu , Pham Ha , Drahomíra Pavelková
doi: http://dx.doi.org/10.21511/imfi.14(3-1).2017.04
Investment Management and Financial Innovations Volume 14, 2017 Issue #3 pp. 199-209 Views: 1000 Downloads: 223 TO CITE АНОТАЦІЯThe main purpose is to examine the relationship between corporate cash holding level and the prestige of the stock exchanges. And the other determinants in the listing requirements impact on cash holding level will be indicated. The paper uses a sample of 577 listed firms excluding the financial institutions on the Vietnamese stock exchange over the period 2007–2015. The results show that the listed firms on the stock exchange with higher prestige hold larger amount of cash reserve and vice versa. The study shows that there is a statistically significant connection between cash holding and the listing requirements such as profitability, dividend and information disclosure. The findings have implications on the cash management of listed firms in the stock exchanges with dissimilar prestige.
