Impact of responsive and proactive market orientation on SME performance: The moderating role of economic crisis perception

This study examines the relationship between market orientation (MO) and the performance of small and medium‐sized enterprises (SMEs) within the context of economic crisis. It distinguishes between two levels of MO: responsive market orientation (RMO) and proactive market orientation (PMO). Data were collected on a sample of 300 SME. Findings indicate that SMEs, confronted with an economic downturn, use a MO approach that is both proactive and responsive, and reveal the moderator effect of the SME manager's perception of an economic crisis on PMO/RMO–performance. Research and practical implications are discussed. © 2018 ASAC. Published by John Wiley & Sons, Ltd.     

泰国金融危机成因及对人民币自由兑换的启示

中国外汇体制改革的最终目标是实现人民币完全自由兑换。在人民币已实现经常项目下可兑换后,外汇体制改革步伐正在加快。但泰国金融危机对本国乃至世界经济造成的巨大冲击,使我们必须十分审慎对待资本项目开放,使之与我国经济发展水平、开放程度相适应。     

What Caused the Korean Currency Crisis in 1997?*: Weak Fundamentals or Self‐fulfilling Expectations*

The present paper investigates which factor is primarily responsible for the sharp depreciation of the Korean won against the US dollar in 1997, using a bivariate vector autoregressive model of real and nominal exchange rates. In the present study, we directly identify the relative importance of fundamental and non‐fundamental factors from the raw data series on exchange rates. This approach is different from most previous studies on the Korean currency crisis, which use proxy variables to represent the two factors. The empirical results show that the collapse of the Korean currency in 1997 appears to be mostly a result of the weakened macroeconomic fundamentals of the economy with, to a limited extent, some non‐fundamental factors.     

The Norwegian banking crisis: Managerial escalation of decline and crisis

This paper examines the impact and nature of managerial contribution to the Norwegian banking crisis. Numerous findings are reviewed which suggest that many bank managers produced inappropriate responses to the initial decline and subsequent crisis, and thus contributed to the crisis, due to a set of common managerial misrepresentations of the situation. These include: external attribution of failure, overoptimism and overconfidence, the confirmation trap, the illusion of control, irrational escalation of commitment and insufficient adjustment.     

Micro-aspects of monetary policy: Lender of Last Resort and selection of banks in pre-war Japan

This paper explores how the Bank of Japan (BOJ) dealt with the trade-off between stability of the financial system and the moral hazard of banks in pre-war Japan. The BOJ concentrated Lender of Last Resort (LLR) loans with those banks that had an established transaction relationship with the BOJ. At the same time, the BOJ carefully selected its transaction counterparts, and did not hesitate to end the relationship if the performance of a counterpart declined. Further, the BOJ was selective in providing LLR loans. Through this policy, the BOJ could avoid the moral hazard that the LLR policy might otherwise have incurred.     

货币危机频繁爆发的原因及对策

商业银行股份制改造已进入实质性阶段,以此为契机,中国金融体系改革也面临着前所未有的机遇与挑战,在经济、金融自由化的今天,我国将要面临的风险与外部冲击必然会增多。在此背景下重提货币危机,有着较为重大的理论与现实意义。     

Investigating explanatory theories on laypeople’s risk perception of personal economic collapse in a bank crisis – the Cyprus case

We investigate the explanatory power of decision, psychometric, and trust theory to describe laypeople’s risk perception of personal economic collapse in a bank crisis. The aim of this investigation is to improve the understanding of the effects of national initiatives for crisis fighting taken to prevent systemic risk. Using a stratified sample of 738 Cypriote citizens, we conducted an investigation in Cyprus in the spring of 2013 when the country was facing a bank crisis. At that point in time, the Cypriote Government had imposed capital controls to prevent a bank run. We find that decision theory variables alone have low explanatory value on laypeople’s risk perception, and that laypeople’s risk perception in this situation is affected primarily by psychometric variables. Further, confidence in one’s own bank also explains risk perception. Our findings contribute novel knowledge about risk perceptions in a financial crisis, with practical crisis management implications for regulators.     

International Evidence on Risk Taking by Banks Around the Global Financial Crisis

This study models the risks of commercial banks from the United States and developed, emerging, and frontier countries while controlling for bank- and country-specific variables within a panel framework. Bank risk is measured by both the traditional Z-score and a composite bank risk index proposed by the authors. The findings suggest that even though the riskiness of all banks from different country groups increased following the financial crisis, the magnitude of the change is not the same across groups. During the post-crisis period, banks in developed, emerging, and frontier countries experienced a smaller increase in their risk compared to their counterparts in the United States. This article provides support for the claim that banks in emerging and frontier countries have experienced the effects of the financial crisis to a lesser extent compared to those in the United States.     

The Determinants of Nonperforming Loans Before and After the Crisis: Challenges and Policy Implications for Turkish Banks

This article examines the determinants of nonperforming loans (NPLs) in the Turkish banking sector via panel data estimation techniques. In order to see the effect of the global crisis and whether this effect changes across ownership, the analysis is conducted in subperiods covering the precrisis and the postcrisis periods and estimations are repeated by an ownership breakdown. Findings show that the determinants of NPLs have changed, and macroeconomic and policy-related determinants have higher significance after the crisis. Accordingly, strong economic activity and sound fiscal policy improve loan quality, while higher policy rate induces NPLs. Meanwhile, the significance of bank-specific determinants depends on ownership. Yet, a common theme applies suggesting that asset size should grow in favor of loans, but this should be backed with efficient loan monitoring, while capital adequacy is stringent enough to limit NPLs.