Does deposit insurance improve financial intermediation? Evidence from the Russian experiment

This study examines how the introduction of deposit insurance affects depositors and banks, using the deposit-insurance scheme introduced into the Russian banking system as a natural experiment. The fundamental research question is whether the introduction of deposit insurance leads to a more effective banking system as evidenced by increased deposit-taking and decreased reliance upon State-owned banks as custodians of retail deposits. We find that banks entering the new deposit-insurance system increase both their level of retail deposits and their ratios of retail deposits to total assets relative to banks that do not enter the new deposit insurance system. These results hold up in a multivariate panel-data analysis that controls for bank- and time-random effects. The longer a bank has been entered into the deposit insurance system, the greater is its level of deposits and its ratio of deposits to assets. Moreover, this effect is stronger for regional banks and for smaller banks. We also find that implementation of the new deposit-insurance system has the effect of “leveling the playing field” between State-owned banks and privately owned banks. Finally, we find strong evidence of moral hazard following implementation of deposit insurance in the form of increased bank risk-taking. Financial risk and, to a lesser degree, operating risk increase following implementation.     

Problems and strategic objectives for the development of a public purchasing institution

The problems of implementing managerial and institutional innovations in the sphere of purchasing commodities, works, and services in order to meet the public needs have been considered in the paper. The main focus has been directed at the theoretical and practical foundation of forming a public purchasing institution, a contact model for purchasing management, and the strategic problems of increasing the efficiency of meeting public needs in the mid- and long-term prospects.     

Equity market integration in Central European emerging markets: A cointegration analysis with shifting regimes

We investigate the existence of long-run relations between emerging Central European stock markets and the mature stock markets of Europe and the United States. Allowing for instability in these long-run relations, we obtain evidence of links between the Central European markets that is stronger than has previously been reported. We also show that the Central European markets display equilibrium relations with their mature counterparts, which persist after controlling for structural changes. It follows that Central European markets have become more integrated with global markets.     

Mission-first social enterprises: A case study of how three nonprofit organizations avoided mission drift when forming and operating social enterprises

The purpose of this study was to examine how leaders of nonprofit social enterprises manage the tension between social mission and financial goals to avoid mission drift. The study employed a case study/cross-case analysis design and used the qualitative research methods of interviewing, document review, and participant observation. We found tremendous variation in the strategies created for the organizations included in the study (n = 3). We labeled strategies as (a) structured ignorance, (b) problem reframing, and (c) defensible trade-offs. Further research is needed to identify a comprehensive typology of strategies; however, there are immediate practical and social implications of this study. Specifically, the strategies identified here can be considered by nonprofit practitioners struggling with the mission/money tension. Additionally, these strategies challenge commonly held beliefs about the relationship among nonprofits, social service, and revenue generating activities.     

Institutional Traders' Behavior in an Emerging Stock Market: Empirical Evidence on Polish Pension Fund Investors

Abstract:   In this paper, we contribute to the literature on institutional herding and feedback trading by analysing the investment behavior of pension funds on the Polish stock market. Pension funds entered into the stock market due to the national pension system reform in 1999, providing a unique opportunity to receive deeper insight into the behavior of institutional investors in an emerging capital market. Our results show that Polish pension fund investors are to a greater extent involved in herd‐like behavior and pursue feedback trading strategies more often than their counterparts in mature markets. This finding is primarily attributed to a stringent investment regulation and high market concentration. We do not detect, however, that trading by the pension funds exerts significant influence on the future stock prices.     

The Role of the Private Sector In The Public Service Of The Ukralne

The system of social service provision in the Ukraine functions due to its traditional patterns of social-political interaction. Private social service providers played a limited role in this process as their Institutional recognition has always been problematic. We can diversify service providing by the public and private actors interacting in this provision. In the complexity of their interactions the key variable has been philanthropy, which transformed from support of the individual to an overarching nationalistic ideology. The dynamics of social-political governance is expressed now in the tensions between more traditional patterns of interactions based on their reciprocity with the economic, political and ideology crisis the country is facing Ineffective management of government social service providers, prevalence of western donor-rooted Non-Governmental Organizations (NGOs), failures of indigenous NGOs to achieve the social value, moral degradation and disbelief in democracy and reforms in population characterize social service provision in the country now.     

Price limits on a call auction market: Evidence from the Warsaw Stock Exchange

We empirically investigate the impact of price limits on volatility and autocorrelation in the call auction segment of the Warsaw Stock Exchange (WSE). Because call auctions offer time-out periods to investors, we do not expect price limits to counter overreaction and panic in this market structure. Indeed, our empirical findings show that price limits result in excess volatility on the next trading day and strong continuation of price movements, which indicates that price limits only delay the adjustment of prices to equilibrium levels. Our results question the necessity of price limits in the call auction system of the WSE.