Does political risk matter for economic and financial risks in Venezuela?

Does Institutions Matter for Economic Development? Evidence for ASEAN Selected Countries

Abstract The theoretical and applied issues of the relationship between institutions and economic growth have thoroughly been examined in ASEAN countries. This study revisits the issue and tests the role of institutions in the economic growth using the World Governance Indicators (WGI) and uses a new method to examine the impact of the various institutions on the economic growth. We used dynam...

Understanding Economic Growth in Venezuela: 1970-2005 - The Financial Sector

Does Legal Enforcement Matter for Financial Risks? The Case of Strategic Default in China∗

Using a unique sample of Chinese bank loans over the period 2007-2012, we analyze the repayment decisions of borrowing firms whose cash holdings are high enough to cover the maturing loans. We find that at the firm level weak legal enforcement increases the likelihood for these firms to default on its loan obligations. The impact of legal enforcement becomes stronger when firms face tighter fin...

Does Economics Matter for/in Economic Geography?

On the Risk Situation of Financial Conglomerates: Does Diversification Matter?

In general, conglomeration leads to a diversification of risks (the diversification benefit) and to a decrease in shareholder value (the conglomerate discount). Diversification benefits in financial conglomerates are typically derived without accounting for reduced shareholder value, even though a comprehensive analysis requires competitive conditions within the conglomerate, i.e., shareholders...