Investigating Impact of US, Europe, Frontier and BRIC Stock Markets on Indian Financial Stress Index

Singh, Amanjot; Singh, Manjit

doi:10.7172/2353-6845.jbfe.2016.2.2

Cited by 4 publications

(4 citation statements)

References 31 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This approach is consistent with prior research utilizing unweighted standardized composite indices to capture financial pressures faced by banks (Bordo et al, 2000; Singh & Sidhu, 2016).…”

supporting

confidence: 83%

See 1 more Smart Citation

Investing for keeps: Firms’ prepandemic investments in human capital decreased workforce reductions associated with COVID-19 financial pressures.

Bentley¹,

Kehoe²,

Chung³

2021

Journal of Applied Psychology

View full text Add to dashboard Cite

We examine how firms' prepandemic investments in human capital influence their use of workforce reductions and layoffs (hereafter, workforce reductions) as a response to financial pressures during the coronavirus disease (COVID-19) pandemic. We contend that workforce reductions must be examined in the context of firms' broader financial and resource orchestration environments. First, we suggest that firms' relative exposure to pandemic financial pressures (PFPs) will determine their need to cut costs during the pandemic. Second, we argue that a firm's prior investments in employees' human capital will reduce the attractiveness of workforce reductions as a cost-cutting response to PFPs, as human capital investment (HCI) increases the value of employees' knowledge, skills, and abilities and motivation, thus inducing firms to seek alternative measures to reduce costs. We then argue that the attenuating influence of HCI on the effect of PFPs on workforce reductions will be stronger when HCI is matched with greater investments in physical capital, as employees' human capital will create more value-and will translate to a bigger loss following employee departures-in such circumstances. We demonstrate support for our hypotheses in a sample of 1,364 U.S. banks using data from quarterly Federal Deposit Insurance Corporation (FDIC) reports, news articles, and Worker Adjustment and Retraining Notifications (WARN) Act filings through the fourth quarter of 2020. We discuss implications for our understanding of the impact of the COVID-19 pandemic on organizations and employees and for research on resource orchestration and human capital.

show abstract

“…This approach is consistent with prior research utilizing unweighted standardized composite indices to capture financial pressures faced by banks (Bordo et al, 2000; Singh & Sidhu, 2016).…”

supporting

confidence: 83%

“…Analyses predicting magnitude of layoffs yielded consistent results.4 Analyses with positive values not set equal to zero yielded consistent results.5 This approach is consistent with prior research utilizing unweighted standardized composite indices to capture financial pressures faced by banks(Bordo et al, 2000;Singh & Sidhu, 2016).…”

supporting

confidence: 68%

Investing for keeps: Firms’ prepandemic investments in human capital decreased workforce reductions associated with COVID-19 financial pressures.

Bentley¹,

Kehoe²,

Chung³

2021

Journal of Applied Psychology

View full text Add to dashboard Cite

show abstract

“…Analyzing the influence of selected stock markets on the financial stress index of India for the period between October, 2003 andOctober, 2014;Singh and Singh (2016) evaluate the issue from a different perspective in comparison to the above mentioned studies. The financial stress index utilized encompasses the equity, debt, foreign exchange, and money markets of India; whereas, the selected stock markets can be listed as those of the US, Europe, frontier, and BRIC stock markets.…”

Section: Literature Reviewmentioning

confidence: 99%

Return Spillovers Between Emerging Markets’ Financial Stress and Equity Markets of Bric-T Countries

Günay

Öner

Aybars

2023

Marmara Üniversitesi İktisadi Ve İdari Bilimler Dergisi

View full text Add to dashboard Cite

This study explores the connectedness between selected emerging equity markets (BRIC-T) and the Emerging Markets Financial Stress Index (EMFSI). We aim to reveal the extent of spillovers from stock market indices to aggregated financial tension in these countries. Empirical investigations are executed through Quantile Vector Autoregression analysis. Results show that spillovers occur mainly during extreme negative and positive return periods. When we focus on four important phases, namely Global Financial Crisis (GFC), the Euro Area Sovereign Debt Crisis, the COVID-19 pandemic, and the Russia-Ukraine war, three countries come to the fore. While Brazil has had a substantial and persistent impact across the years, during the GFC, two other countries, Russia and Türkiye, seem to induce positive return spillovers toward emerging markets’ stress. This impact becomes bilateral in Russia (both in positive and negative returns) during the pandemic and the Russia-Ukraine war. Thus, we conclude that among the examined market economies, negative or positive return transmissions to emerging market stress are led mainly by Brazil and Russia. The importance of energy sources and political factors can account for this result.

show abstract

“…The author reported that an increase in financial stress leads to a significant dampening of GDP growth rates and inflation rates. There are some studies which have gone one step ahead and tried to account for the impact of the financial stress on the stock markets as well (Rachdi, 2013) and the other way around (Singh and Singh, 2016b).…”

Section: Relevant Literature Reviewmentioning

confidence: 99%

A revisit to how linkages fuel dependent economic policy initiatives

Singh

2017

IJLMA

Self Cite

View full text Add to dashboard Cite

Purpose The authors aim to report empirical linkages between the US and Brazil, Russia, India and China (BRIC) financial stress indices catalyzing catalyzing dependent economic policy initiatives (an extended version of Singh and Singh, 2017a). Design/methodology/approach Initially, the study develops financial stress indices for the respective BRIC financial markets. Later, it captures linkages among the said US-BRIC indices by using Johansen cointegration, vector autoregression/vector error correction models (VECM), generalized impulse response functions, Toda–Yamamoto Granger causality, variance decomposition analyses and bivariate generalized autoregressive conditional heteroskedasticity (GARCH) model under constant conditional correlation framework, in general. Markov regime switching and efficient causality tests proposed by Hill (2007) are also used. Findings Overall, there are both short-run and long-run dynamic interactions observed between the US and Indian financial stress indices. For rest of the markets, only short-run interactions are found to be in existence. The time-varying co-movement coefficients report financial contagion impact of the US financial crisis on Russian and Indian financial systems only. Contrary to this, Brazilian and Chinese financial systems are largely exhibiting interdependence with the US financial system. Efficient causality tests report indirect impact of the Russian financial system on Brazilian via auxiliary Indian financial system. Originality/value The present study is the first of its kind capturing linkages among the US-BRIC financial stress indices by using diverse econometric models. The results support different market participants and policymakers in understanding effectiveness and implementation of economic policies while considering their cross-market interactions as well.

show abstract

Investigating Impact of US, Europe, Frontier and BRIC Stock Markets on Indian Financial Stress Index

Cited by 4 publications

References 31 publications

Investing for keeps: Firms’ prepandemic investments in human capital decreased workforce reductions associated with COVID-19 financial pressures.

Investing for keeps: Firms’ prepandemic investments in human capital decreased workforce reductions associated with COVID-19 financial pressures.

Return Spillovers Between Emerging Markets’ Financial Stress and Equity Markets of Bric-T Countries

A revisit to how linkages fuel dependent economic policy initiatives

Contact Info

Product

Resources

About