This research studies the moderating effect of country-specific social connectedness on the relation between financial literacy and stock market participation. This is done by using the extensive and multi-country SHARE data. The positive relation between financial literacy and stock market participation is reconfirmed. Moreover, the findings show that country-specific social connectedness sign...

One important reason for the global impact of the 2007–2009 financial crisis was massive illiquidity in combination with an extreme exposure of many financial institutions to liquidity needs and market conditions. As a consequence, many financial instruments could not be traded anymore; investors ran on a variety of financial institutions, particularly in wholesale markets; financial institutio...

in the recent economic literature, an important finding is the causal relationship between financial development and economic growth. before the 1970s, the most of economists believed that economic growth could be reached only by accumulation of physical capital. in the 1970s and after the pioneering works of mckinon (1973) and shaw (1973), this orthodox view was criticized by a vast amount of ...

While increases in cross-market correlations during periods of market crises are well documented, Forbes and Rigobon (2002) show that correlation coefficients are biased measures of dependence when markets become more volatile, and that there is no evidence of contagion in recent financial crises once corrected for these effects. This paper explores the impact of volatility on market dependence...

so far, the financial experts could not calculate independent earnings to have a necessary quality. in this case, they can reach a range of earnings, which show a more correct form of quality of earnings, of course with performing the suitable equitabilities. therefore, the concept of quality of earnings is not a fixed defining. however, it is a relative concept that depends to its relation to ...

Based on a dynamic open-economy macroeconomic model, this paper aims at understanding the contribution of domestic financial under-development to foreign reserve accumulation in some emerging market economies, especially in China. It is argued that foreign reserve accumulation is a consequence of a growth strategy induced by strong capital investment in a financially constrained economy. It is ...

• Capital markets have undergone massive changes in the past decade; in Western Europe but of course more fundamentally in the Central and Eastern European Countries (CEEC). • The euro has fostered the transformation of financial systems toward a more market based approach. Its impact in Eastern Europe will be even stronger. • To ensure the success of EMU an active and open-market stance is req...