The role of neighborhood characteristics in mortgage default risk: Evidence from New York City

Using a rich database of non-prime mortgages from New York City, we find that census tract level neighborhood characteristics are important predictors of default behavior, even after controlling for an extensive set of controls for loan and borrower characteristics. First, default rates increase with the rate of foreclosure notices and the number of lender-owned properties (REOs) in the tract. Second, default rates on home purchase mortgages are higher in census tracts with larger shares of black residents, regardless of the borrower’s own race. We explore possible explanations for this second finding and conclude that it likely reflects differential treatment of black neighborhoods by the mortgage industry in ways that are unobserved in our data.     

Analysis of the cross-region risk contagion effect in stock market based on volatility spillover networks: Evidence from China

This article uses the stock market regional indexes of 31 provinces (include Province-level municipalities and Minority Autonomous Regions) in mainland China as a sample, and constructs an inter-regional volatility spillover network of China’s stock market based on the GARCH-BEKK model. Through network centrality analysis, Diebold and Yilmaz's spillover index method and block model analysis, we comprehensively analyze the risk contagion effect among different regions in China’s stock market. The empirical results show that: (i) The risk contagion intensity (risk reception intensity) in various regions of China’s stock market has a typical “core-periphery” distribution characteristic due to regions’ different levels of economic development. (ii) There are obvious risk spillover effect in China’s stock market, among which the economically developed regions along the southeastern coast of China, such as Beijing, Shanghai, Zhejiang and Jiangsu, are the main risk transmitters, while the economically undeveloped regions in the Midwest of China, such as Xinjiang, Xizang, Gansu, Nei Menggu and Qinghai are the main risk receivers. (iii) Each region is divided into 4 blocks according to their respective roles in the risk spillover process in China’s stock market. Block 1 that is composed of the economically underdeveloped regions in the Midwest is the “main benefit block”, it acts as a “receiver”. Block 2 that is composed of regions with strong economic growth vitality in the Midwest is a “Bilateral spillover block”, it both plays the role of “receiver” and “transmitter”. Block 3 that is composed of developed regions along the southeast coast, it acts as a “transmitter”; Block 4 that is composed of the relatively fast-growing regions in the Southwest is the “brokers block”, it serves as a “bridge”. The results of this article can provide some reference for investors in financial institutions and decision makers in financial regulators.     

Network management as a contingent activity. A configurational analysis of managerial behaviors in different network settings

ABSTRACT

Network managers engage in several day-to-day activities, including bridging, networking, and stabilizing relationships. Still, when should they opt for one activity or another? Our study shows that this choice needs to be taken in combination with certain network characteristics, such as network development stage, connectivity, and trust. It sheds light on four different combinations of activities and network characteristics that are simultaneously able to lead to perceived high network performance. It also suggests three approaches to network management in networks that differ in their development stage, connectivity and trust: stabilize, stabilize and connect, stabilize and develop.     

The integration of international financial markets: an attempt to quantify contagion in an input–output-type analysis

ABSTRACT

The increasing integration of international financial markets means that credit defaults in one country have to be covered by creditors in other countries. If the principle of creditor liability were applied systematically, the financial losses incurred by the financial institution that provided the credit and is thus directly affected by the default would be ‘passed on’ through its domestic and foreign shareholders and debt holders, as well as their creditors, to the original savers. In this paper, this contagion effect will be estimated by taking international capital linkages into account. Analogously to an input–output analysis of inter-industry linkages, savings used for investments in one country are traced back to the countries from which the funds originated. This also reveals the important role of international financial centers, which essentially serve as distributors of investment risks, while the financial losses are ultimately borne by larger countries with higher levels of savings.     

我国西部欠发达地区金融体制改革的模式选择

金融体制改革是经济体制改革的重要内容,本文在对我国西部欠发达地区金融体制运行现状进行分析的基础上,探讨了我国西部欠发达地区金融体制改革的模式选择及进一步推进金融体制改革的着力点。     

基于Excel的财务建模在资产组减值损失分摊计算中的应用

企业会计准则规定,企业资产组计提的减值准备应在组合所包含的单项资产中按规定顺序予以分摊,资产组内各项固定资产的减值损失的计算,其计算过程极其繁琐,给实务操作带来困难。文章利用Excel的财务建模建立其计算模型,实现减值分摊计算的自动化,简化资产组减值损失的计算工作。     

The asymmetric effect of crude oil prices on stock prices in major international financial markets

The aim of this paper is to explore the potential asymmetric impacts of positive and negative shocks in crude oil prices on stock prices in six major international financial markets which include China, Hong Kong, America, Japan, Britain, and Germany. We test for these asymmetric effects on 8 major international financial markets indices over the 2007M01–2020M03 periods. Our independent measures include the prices of Brent crude oil futures and West Texas Intermediate (WTI) futures. We use the nonlinear ARDL (NARDL) model proposed by Shin et al. (2014), which can capture both short- and long-run nonlinearities through positive and negative partial sum decompositions of the explanatory variables. This research finds that positive and negative fluctuations of oil price have asymmetric effects on stock price index in four financial markets, but the performance of the asymmetry is different. Specifically, the impacts of volatility in oil prices on two indices of Chinese stock prices are different, and the asymmetric effects of oil price volatility on stock price indices in China and other financial markets are significantly different.     

The relation between key events in the development phase and the financial structure of NTBFs in the software sector

The study is based on a questionnaire survey of 117 Irish software firms. It finds no systematic relation between product lead time and acquisition of first external funds in new technology-based firms (NTBFs). Contrary to the stage model’s predictions, these firms are just as likely to secure finance in advance of producing their first product beta as they are to receive funds subsequently. Product lead times in this sector are short. Firms produced their first product beta in a median of 12 months and acquire their first external funds a median of 3 months later. The timing of these two events, however, is not significantly different. There is a significant difference in the mean time to receipt of consulting revenues and the development of first beta, suggesting that most software product companies use consulting revenues to fund product development.