Challenges the finance profession has been facing following the 2008-2009. A multi-country research

In the successful strategic management of the modern companies each function plays their specific role. While today’s businesses in many ways are different from their ancestors, the key fundamentals are derived from the same roots. Their main purpose of existence is to serve the needs of their shareholders and stakeholders by creating value (Pike et al., 1993). To achieve this effectively and efficiently the various functions need to work in close cooperation with each other. The global crisis, starting in 2008, proved that volatility is higher for the financial markets and the ordinary businesses that have been anticipated before. As the recession started as a financial crisis many people started to blame – amongst others – banks and financial institutions for excessive risk taking and taking short profits ahead of long term sustainable growth. Accordingly the lost confidence in the financial institutions has taken a toll on the reputation of other Finance professionals such as accountants, book keepers, treasury, tax people and others. The finance function’s strategic importance is linked to its ability to help interpreting the business performance and provide transparency. In order to restore the trust the finance profession is now facing one of the biggest challenges of its history, the need to reinvent itself. This paper presents the findings of a recent international research conducted in the United Kingdom, France, Hungary and Poland interviewing 169 executives of the business sector plus the review of 237 job descriptions of finance professionals in order to understand the challenges of the modern finance function. The findings of the study could provide relevant answers and help to overcome a very current problem that Finance is facing today, how to rebuild reputation and to stay a trusted partner and enabler for long term business strategy.

Research on the influence of behavioral forces that motivate trader behavior and sentiment: A prospect theory exegesis

This study focuses on empirical investigations and seeks implications by utilizing three different methodologies to test various aspects of trader behavior. The first methodology utilizes Prospect Theory to determine trader behavior during periods of extreme wealth contracting periods. Secondly, a threshold model to examine the sentiment variable is formulated and thirdly a study is made of the contagion effect and trader behavior. ^ The connection between consumers' sense of financial well-being or sentiment and stock market performance has been studied at length. However, without data on actual versus experimental performance, implications based on this relationship are meaningless. The empirical agenda included examining a proprietary file of daily trader activities over a five-year period. Overall, during periods of extreme wealth altering conditions, traders "satisfice" rather than choose the "best" alternative. A trader's degree of loss aversion depends on his/her prior investment performance. A model that explains the behavior of traders during periods of turmoil is developed. Prospect Theory and the data file influenced the design of the model. ^ Additional research included testing a model that permitted the data to signal the crisis through a threshold model. The third empirical study sought to investigate the existence of contagion caused by declining global wealth effects using evidence from the mining industry in Canada. Contagion, where a financial crisis begins locally and subsequently spreads elsewhere, has been studied in terms of correlations among similar regions. The results provide support for Prospect Theory in two out of the three empirical studies. ^ The dissertation emphasizes the need for specifying precise, testable models of investors' expectations by providing tools to identify paradoxical behavior patterns. True enhancements in this field must include empirical research utilizing reliable data sources to mitigate data mining problems and allow researchers to distinguish between expectations-based and risk-based explanations of behavior. Through this type of research, it may be possible to systematically exploit "irrational" market behavior. ^

Research on the influence of behavioral forces that motivate trader behavior and sentiment- a prospect theory exegesis

This study focuses on empirical investigations and seeks implications by utilizing three different methodologies to test various aspects of trader behavior. The first methodology utilizes Prospect Theory to determine trader behavior during periods of extreme wealth contracting periods. Secondly, a threshold model to examine the sentiment variable is formulated and thirdly a study is made of the contagion effect and trader behavior. The connection between consumers' sense of financial well-being or sentiment and stock market performance has been studied at length. However, without data on actual versus experimental performance, implications based on this relationship are meaningless. The empirical agenda included examining a proprietary file of daily trader activities over a five-year period. Overall, during periods of extreme wealth altering conditions, traders "satisfice" rather than choose the "best" alternative. A trader's degree of loss aversion depends on his/her prior investment performance. A model that explains the behavior of traders during periods of turmoil is developed. Prospect Theory and the data file influenced the design of the model. Additional research included testing a model that permitted the data to signal the crisis through a threshold model. The third empirical study sought to investigate the existence of contagion caused by declining global wealth effects using evidence from the mining industry in Canada. Contagion, where a financial crisis begins locally and subsequently spreads elsewhere, has been studied in terms of correlations among similar regions. The results provide support for Prospect Theory in two out of the three empirical studies. The dissertation emphasizes the need for specifying precise, testable models of investors' expectations by providing tools to identify paradoxical behavior patterns. True enhancements in this field must include empirical research utilizing reliable data sources to mitigate data mining problems and allow researchers to distinguish between expectations-based and risk-based explanations of behavior. Through this type of research, it may be possible to systematically exploit "irrational" market behavior.

Finance past, finance future: a brief exploration of the evolution of financial practices

As we work our way through the latest financial crisis, politicians seem both powerless to act convincingly and unable to craft from the welter of diverse and antagonistic narratives a coherent and convincing vision of the future. In this article, we argue that a temporal lens brings clarity to such confusion, and that thinking in terms of time and reflecting on privileged temporal structures helps to highlight underlying assumptions and distinguish different narratives from one another. We begin by articulating our understanding of temporality, and we proceed to apply this to the evolution of financial practice during different historical epochs as recently delineated by Gordon (2012). We argue that the principles of finance were effectively in place by the eighteenth century and that consequent developments are best conceptualized as phases in which one particular aspect is intensified. We find that in different historical periods, the temporal intensification associated with specific models of finance shifts, over history, from the past to the present to the future. We argue that a quite idiosyncratic understanding of the future has been intensified in the present phase, what we refer to as proximal future, and we explain how this has come to be. We then consider the ethical consequences of privileging an intensification of proximal future before mapping an alternative model centred on intensifying distal future, highlighting early signs of its potential emergence in the shadows of our present.

The Philippines in the Electronics & Electrical Global Value Chain

This report uses the Duke CGGC global value chain (GVC) framework to examine the role of the Philippines in the global electronics & electrical (E&E) industry and identify opportunities to upgrade. Electronics and electrical equipment have played an important role in the Philippine economy since the 1970s and form the foundation of the country’s export basket today. In 2014, these sectors accounted for 47% of total exports from the Philippines at US$28.8 billion, of which 41% was from electronics, and 6% from electrical products. From a global perspective, while the Philippines is not the leading exporter in any particular product category, it is known for its significant number of semiconductor assembly and test (A&T) facilities. The global economic crisis (2008-09), combined with the exit of Intel (2009), had a significant negative impact on electronics exports and, although steadily increasing, they have not yet rebounded to pre-crisis levels. Nonetheless, investment in the E&E industries has picked up since 2010; in the past five years, there have been 110 new investments in these sectors. Another positive sign is the low exit rate; with the exception of Intel, companies that have invested in the Philippines have stayed, with several operations dating back to the late 1970s and 1980s. These firms have not only stayed, but have continued to grow and expand in the country due to the quality of the workforce and satisfaction with the Philippine Economic Zone Authority (PEZA) environment. The growth of the industry has significantly benefited from foreign investment and close ties with Japanese firms.

Migrant women’s employment in paid reproductive work through the crisis: the case of Italy (2007-2012)

Paid reproductive work, especially in the case of cleaning and home-care for elderly people, is an important sector for foreign women in Italy. For this reason, since the beginning of the current economic crisis, scholars have wondered about the impact of the recession on migrant domestic workers. They have looked particularly at possible competition with Italian women entering the sector for lack of better alternatives. Our paper takes this discussion a step further by assessing the overall changes affecting migrant women in the Italian labour market, 2007-2012. We will look at how their position has been transformed, by taking both an ethnic perspective, in relation to Italian women, and a gender perspective, in relation to migrant men. By way of a conclusion, the argument will be made that there is a substantial lack of competition between Italian and foreign women in the care and domestic sector due to differences in their earnings, hours of work and activities.

New Organizational Leadership: Nonstate Actors in Global Economic Governance

States and international organizations have found irresistible cause in a globalizing world to coopt nonstate actors (NGOs, private standard setters and so forth) to manage the manifold problems arising under their stretched mandates and resources. The pooling of capacities in the pursuit of common goals seems perfectly sensible. Yet although the strategy of cooptation has become a policy of choice, policy makers often lack full knowledge of its implications. As Philip Selznick first showed, cooptation can have unintended consequences, shifting leadership from one organization to another. We place this fertile insight in a better specified analytical framework. That is, one capable of explaining when and how leadership shifts occur and where the status quo leaders will remain at the helm. Using original interview data and structured focused comparisons to test the framework, we reveal dramatic variation in leadership changes following the cooptation of outside actors in global financial and environmental governance.

Entre o Direito de Reclamar e o Direito à Saúde: Serviço Social em Gabinetes do Cidadão do SNS

As políticas de saúde e o direito à saúde em Portugal sofreram profundas transformações nas últimas décadas, muito contribuíram para estas transformações a crise económica e financeira mundial e a influência de políticas neoliberais. O interesse por esta temática surge de uma prática profissional num Gabinete do Cidadão do Serviço Nacional de Saúde e, pela falta de debate e posicionamento público dos Assistentes Sociais sobre as competências do Gabinete do Cidadão e, do papel dos Assistentes Sociais nesse serviço. Com este trabalho, pretende-se contextualizar: as principais transformações nas políticas de saúde e suas repercussões no direito à saúde nos últimos anos; analisar as alterações legislativas que ocorrem entre a criação do Gabinete do Utente e o Gabinete do Cidadão; analisar o trabalho que os Assistentes Sociais têm vindo a desenvolver no âmbito das competências do Gabinete do Cidadão e do direito à saúde. A investigação de cariz exploratório e qualitativo contou com os contributos de Assistentes Sociais que trabalham em Gabinetes do Cidadão da região norte do país e, que participaram através de inquérito por questionário. Da investigação efetuada concluiu-se que o Gabinete do Cidadão apenas garante o direito a reclamar e não o direito à saúde. As possibilidades que se abrem ao trabalho do Assistente Social no Gabinete do Cidadão, em prol da efetivação do direito à saúde parte do trabalho coletivo. As competências e habilidades do Serviço Social devem ter o intuito de promover a consciência crítica dos indivíduos. / Health policies and the right to health in Portugal underwent profound changes in recent decades, greatly contributed to these transformations the global economic and financial crisis and the influence of neoliberal policies. The interest in this subject arises from a professional practice in the Gabinete do Cidadão National Health Service, and by the lack of public debate and placement of Social Workers on the powers of the Gabinete do Cidadão and the role of social workers in this service. This work aims to contextualize: major changes in health policies and their impact on the right to health in recent years; consider legislative changes that occur between the creation of the Gabinete do Utente and the Gabinete do Cidadão; analyze the work that Social Workers have been developing within the competence of the Gabinete do Cidadão and the right to health. The exploratory research and qualitative nature featured contributions from Social Workers who work in Gabinetes do Cidadão of the northern region of the country, who participated via questionnaire survey. Research conducted it was concluded that the Gabinete do Cidadão only guarantees the right to complain and not the right to health. The possibilities that open to the Social Work Assistant in the Gabinete do Cidadão, for the sake of ensuring the right to health of the collective work. The skills and abilities of Social Work must have in order to promote critical awareness of individuals.

Essays on the term structure of interest rates

This PhD thesis contains three main chapters on macro finance, with a focus on the term structure of interest rates and the applications of state-of-the-art Bayesian econometrics. Except for Chapter 1 and Chapter 5, which set out the general introduction and conclusion, each of the chapters can be considered as a standalone piece of work. In Chapter 2, we model and predict the term structure of US interest rates in a data rich environment. We allow the model dimension and parameters to change over time, accounting for model uncertainty and sudden structural changes. The proposed timevarying parameter Nelson-Siegel Dynamic Model Averaging (DMA) predicts yields better than standard benchmarks. DMA performs better since it incorporates more macro-finance information during recessions. The proposed method allows us to estimate plausible realtime term premia, whose countercyclicality weakened during the financial crisis. Chapter 3 investigates global term structure dynamics using a Bayesian hierarchical factor model augmented with macroeconomic fundamentals. More than half of the variation in the bond yields of seven advanced economies is due to global co-movement. Our results suggest that global inflation is the most important factor among global macro fundamentals. Non-fundamental factors are essential in driving global co-movements, and are closely related to sentiment and economic uncertainty. Lastly, we analyze asymmetric spillovers in global bond markets connected to diverging monetary policies. Chapter 4 proposes a no-arbitrage framework of term structure modeling with learning and model uncertainty. The representative agent considers parameter instability, as well as the uncertainty in learning speed and model restrictions. The empirical evidence shows that apart from observational variance, parameter instability is the dominant source of predictive variance when compared with uncertainty in learning speed or model restrictions. When accounting for ambiguity aversion, the out-of-sample predictability of excess returns implied by the learning model can be translated into significant and consistent economic gains over the Expectations Hypothesis benchmark.

Essays on the term structure of interest rates

This PhD thesis contains three main chapters on macro finance, with a focus on the term structure of interest rates and the applications of state-of-the-art Bayesian econometrics. Except for Chapter 1 and Chapter 5, which set out the general introduction and conclusion, each of the chapters can be considered as a standalone piece of work. In Chapter 2, we model and predict the term structure of US interest rates in a data rich environment. We allow the model dimension and parameters to change over time, accounting for model uncertainty and sudden structural changes. The proposed time-varying parameter Nelson-Siegel Dynamic Model Averaging (DMA) predicts yields better than standard benchmarks. DMA performs better since it incorporates more macro-finance information during recessions. The proposed method allows us to estimate plausible real-time term premia, whose countercyclicality weakened during the financial crisis. Chapter 3 investigates global term structure dynamics using a Bayesian hierarchical factor model augmented with macroeconomic fundamentals. More than half of the variation in the bond yields of seven advanced economies is due to global co-movement. Our results suggest that global inflation is the most important factor among global macro fundamentals. Non-fundamental factors are essential in driving global co-movements, and are closely related to sentiment and economic uncertainty. Lastly, we analyze asymmetric spillovers in global bond markets connected to diverging monetary policies. Chapter 4 proposes a no-arbitrage framework of term structure modeling with learning and model uncertainty. The representative agent considers parameter instability, as well as the uncertainty in learning speed and model restrictions. The empirical evidence shows that apart from observational variance, parameter instability is the dominant source of predictive variance when compared with uncertainty in learning speed or model restrictions. When accounting for ambiguity aversion, the out-of-sample predictability of excess returns implied by the learning model can be translated into significant and consistent economic gains over the Expectations Hypothesis benchmark.

The Proposed Financial Transaction Tax – Extraterritorial Effect, Tax Evasion and Other Legal Problems Facing the Proposal

The main topic of this master’s thesis is the proposed EU directive on a financial transaction tax. Ten Member States which want to enact the directive by using enhanced cooperation are currently negotiating the contents of the proposal. This tax would be levied on specific products which are traded on the financial markets. As an example the transaction of stocks would be taxed at a percentage of 0.1 percent, and the transaction of derivatives at a percentage of 0.01 percent. The proposed financial transaction tax would enter into force in said ten countries but it would still have effects on those countries, which are not planning on participating in this taxation system. This is one of the main reasons why this tax has faced a lot of opposition in several European Union countries. The main legal problems the tax is predicted to have are tax evasion, double taxation, and extraterritorial effect. The Commission has stated that it is aiming to reach certain objectives with the financial transaction tax. These objectives are for example to stabilise the financial markets following the financial crisis, and to deter tax evasion. Commission has defended the planning of the financial transaction tax by stating that the tax is likely to reach its objectives. The planning of the financial transaction tax began already in 2011 when the Commission published the first draft of the proposal. Following this the proposal was last amended in 2013, but the participating Member States are currently still negotiating the contents of the proposal. The participating Member States published a statement in December 2015 in which they promised that there will be a decision made about the financial transaction tax by the end of June 2016.

Proces prekaryzacji pracy - nowe kierunki zmian społeczno-gospodarczych w świecie

Wydział Nauk Politycznych i Dziennikarstwa

`A Reporter's Paper': The National Thrift News, Journalistic Autonomy and the Savings and Loan Crisis

Business journalism comes under persistent criticism for serving its historic readership of brokers and business people while lacking sufficient autonomy and failing to sufficiently question or challenge powerful corporate and economic interests. This is a dominant theme in media criticism of the savings and loan crisis⁠ and 2008 financial crisis.⁠ Against this backdrop, this dissertation asks: Is this critique valid, and if so, how can business journalism improve? To engage these questions, this dissertation examines the question of autonomy in business journalism in an unlikely place: the trade press. The central case study is coverage of the savings and loan crisis by the National Thrift News, a small financial services newspaper that won a George Polk award for its reporting in 1988. How could a small trade newspaper succeed in some instances when larger news organizations failed to connect the dots? The National Thrift News created a newsroom environment that celebrated reporter autonomy and independence. In some cases, it used its insider knowledge and consistent beat reporting to serve both its core readers and the broader society by uncovering savings and loan corruption. This study will highlight a long-running debate among theorists of journalistic professionalism by arguing that the commercial and advertising model in journalism does not inevitably compromise journalistic independence⁠ but rather can help pave a way forward for a more independent press. It therefore challenges the political economy critique of journalism, which holds that external forces such as capitalism harm press independence. This case suggests journalistic independence and individual agency remain powerful forces in newsrooms. Lastly, the dissertation argues that in an era of media downsizing, the trade press can perform an even more useful watchdog role over industry if the mainstream news media acknowledges and pursues some of the innovative trade reporting.

PANDEMIA FINANCIERA: efectos sobre la economía costarricense durante el año 2008

Resumen En el presente artículo se analizaron las principales características de la crisis financiera internacional y los efectos sobre la economía costarricense durante el 2008. Las variables claves objeto de análisis se seleccionaron a partir de las manifestaciones de voceros calificados del Gobierno y de los sectores empresariales. Entre las conclusiones más importantes se obtuvo que los efectos de la crisis financiera internacional fueron relativamente poco significativos y, las principales causas de la contracción de la economía costarricense se encuentran en factores internos, sobre todo ligados a la política cambiaria y crediticia local. Abstract This article analyzes the main features of the international financial crisis and its effects on Costa Rican economy during 2008. The key variables for analysis were selected from statements of qualified spokesmen of the Government and business sectors. Among the most important findings was that the effects of the international financial crisis were not so meaningful, and the main causes of the contraction of the Costa Rican economy are domestic factors, mainly linked to local credit and exchange policies.

EL IMPACTO DE LA CRISIS ECONÓMICA MUNDIAL SOBRE LA ECONOMÍA COSTARRICENSE: los efectos macroeconómicos

ResumenLa economía costarricense es una economía pequeña pero muy abierta al exterior, por ello, lo que ocurre en el resto del mundo nos afecta de alguna manera. Cuando estalló la crisis en los Estados Unidos, sus repercusiones se hicieron notar poco a poco alrededor del mundo. En un principio el principal efecto sobre nuestro país se vio reflejado en la inflación, sin embargo, conforme transcurrió el tiempo los efectos saltaron al sector real de la economía, es decir, a la producción y al empleo. En este artículo se analizan los principales efectos que hasta el momento ha tenido la crisis económica mundial en nuestro país, entre ellos se mencionan, la inflación; el decrecimiento en la actividad económica de los sectores construcción, industria, comercio y hoteles, principalmente; la caída en el turismo, las remesas, la Inversión Extranjera Directa (IED), las exportaciones e importaciones y, por último, la reducción en el empleo.Abstract Costa Rican economy is a very small open economy; therefore, what happens in the rest of the world affects us in some way. When the crisis in the United States exploded, its impact was slowly evident around the world. At first, the main effect on our country was reflected in inflation; however, the effects were then clear on the real sector of the economy, i.e. production and employment. This article examines the main effects which so far have been the global economic crisis in our economy, including inflation, and the decline in the economic activity in the construction sector, industry, commerce and hotels, primarily; as well as the fall in tourism, remittances, Foreign Direct Investment, exports and imports, and finally the reduction in employment.