The impact of institutional volatility on financial volatility in transition economies

Hartwell, Christopher A.

doi:10.1016/j.jce.2017.11.002

Cited by 39 publications

(29 citation statements)

References 126 publications

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“…A change of political institutions can engender the largest amount of uncertainty and, at the same point, effectively change the rules of the game going forward (Hartwell, ). If the formal party system is abolished and one‐party rule is instituted, then political connections become crucial for nearly every form of business decision (Boubakri, Cosset, & Saffar, ); moreover, given that firms tends to associate with other politically like‐minded firms (Stark & Vedres, ), the disruption of carefully cultivated inter‐business networks may also have a severe disrupting effect on firm operations.…”

Section: Why Populism and Institutions Matter In Strategymentioning

confidence: 99%

Varieties of populism

Devinney

Hartwell

2020

Global Strategy Journal

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101

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Research Summary The recent electoral popularity of populism suggests our understanding of global and domestic institutions and their impact and relevance to international business may require adjustment. In particular, the literature may be omitting key variables as to what the political environment entails. We propose a framework for understanding the differing varieties of populism. We examine what channels populist thought operates through and how various strains of populism concentrate on different facets of society. We articulate an operational definition for international strategy based upon prior research in economics, political science, and history. This framework is incorporated into current research on institutional theory as applied in international business, with the goal of proposing a more nuanced and foundational view of institutional environments and how they impact global strategy. Managerial Summary The surge of populism globally—but especially in developed economies—has highlighted new perils for business strategy. Our current models of strategic thinking have not yet caught up to the reality of populism's moment, nor have they accurately captured what are increasingly important facets of a political system, such as traits of specific leaders. This paper examines the need to incorporate new perspectives on institutions into global strategy. In particular, we highlight the various varieties of populism—whether it focuses on economic, social, or political ends—and how each approach can impact a business in a different manner. In doing so, we provide some clarity and guidance for managers faced with political turbulence.

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Section: Why Populism and Institutions Matter In Strategymentioning

confidence: 99%

Varieties of populism

Devinney

Hartwell

2020

Global Strategy Journal

Self Cite

101

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“…The financial volatility has different sources, related to economic conditions, institutional issues or market uncertainty (Hartwell, 2018). Macroeconomic announcements also affect the financial volatility.…”

Section: Introductionmentioning

confidence: 99%

Coronavirus and Financial Volatility: 40 Days of Fasting and Fear

2020

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40 days after the start of the international monitoring of COVID-19, we search for the effect of official announcements regarding new cases of infection and death ratio on the financial markets volatility index (VIX). Whereas the new cases reported in China and outside China have a mixed effect on financial volatility, the death ratio positively influences VIX, that outside China triggering a more important impact. In addition, the higher the number of affected countries, the higher the financial volatility is.

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“…Some previous studies found that institutions has significant contribution on financial inclusion in various ways such as Zins & Weill (2016), Okello, Ntayi & Munene (2017, Hartwell (2017), Leroy &Pop (2018), andWilliams (2018). Zins & Weill (2016) report some African countries still face low level of financial inclusion.…”

Section: Jurnal Ekonomi Pembangunan Issn 1411-6081 E-issn 2460-9331 184mentioning

confidence: 96%

“…This is addressed to reduce the transaction gap and financial literacy between cities and villages, between low and high-income people. Hartwell (2017) adds some indicators of institutions such as property right and democracy can encourage the financial volatility in Central and Eastern Europe and the former Soviet Union. The democracy indicator was also utilized by Williams (2018) to examine the linkage between credit market and economic growth in emerging and developing economies.…”

Section: Jurnal Ekonomi Pembangunan Issn 1411-6081 E-issn 2460-9331 184mentioning

confidence: 99%

Linkages between Dynamic Financial Inclusion and Institutions in ASEAN 8

Pandhit¹,

Cahyadin

2020

JEP

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Financial inclusion becomes a priority concern with governments in ASEAN countries such as reduce the lack of access for public to formal financial institutions. Moreover, there is an empirical gap of linkages between institutions and financial inclusion. Thus, the study aims to estimate the effect of institutions on dynamic financial inclusion. Three financial inclusion indicators are employed, namely: debit card ownership, credit card ownership, and domestic credit to GDP ratio. Institutional indicators consist of six indicators following world governance indicators. The research observations are about 88 consisting of cross-sections were eight of ASEAN countries and the time series was 2008-2018. Indeed, a dynamic panel data was employed. In general, the findings exhibit that FEM is the appropriate model under Hausman test. Specifically, debit card ownership and credit card ownership were determined by voice and accountability, and rule of law while domestic credit to GDP ratio was determined by some indicators of institutions such as voice and accountability, political stability, regulatory quality, and control of corruption. Hence, the policy implications were directed to improve the quality of institutions both country and ASEAN levels. The high quality of institutions will stimulate the acceleration and expansion of financial inclusion in ASEAN countries.

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The impact of institutional volatility on financial volatility in transition economies

Cited by 39 publications

References 126 publications

Varieties of populism

Varieties of populism

Coronavirus and Financial Volatility: 40 Days of Fasting and Fear

Linkages between Dynamic Financial Inclusion and Institutions in ASEAN 8

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