Literature review on financial crisis and capital market

Restrospective of Financial Reporting on Capital Markets. Annales Universitatis Apulensis Series Oeconomica, 14 2pp. Behavioral research in Accounting has been used to study several aspects of Accounting.

Same reasons are attributed to different behaviors of individuals which should not be the case.

This requires more analysis since the level of information available to its consumers actually affects their reaction to capital markets. Working Paperpp.

Critical Evaluation of the Literature Review Scope of previous studies and gaps Several studies have been carried out concerning the reactions of the capital market to financial reporting.

In his work on the emerging capital markets, he identifies the main issue leading to efficiency of the markets to include the defined sets of regulations standards and principals as well as the listing requirements. Accordingly, EMH will not hold universally due to different levels of capital allocation.

Different markets have different levels of financial release, they exist in different environments and obligations of reporting differ between countries. For EMH, inconsistencies need to be evaluated.

This will however not be the case when environmental aspects differ between different markets, despite application of the same accounting policies and methods.

On Principal Agent Theory, further research beyond the Behavioral Accounting needs to be undertaken to determine the maximization of self-interests.

This aim was supported by the gaps emanating from the analysis of theories and the empirical findings. Secondly, in capital markets research, however, there is only a concentration of processes, as the discussions on only two events. First, the agency theory is critical in explaining the principal-agent theory, their relationship and how it affects financial reporting.

These have not been isolated with regard to their impact on the reactions of capital markets to financial reporting. Conclusion The study has covered the major aspects that are involved on the reactions of the capital markets upon financial reporting.

Further, the markets have poor liquidity, are poorly regulated and have major operational bottlenecks. The isolation of voluntary and involuntary pieces of information, as well, the general differences between financial environments need to be incorporated into future researches.

The idealness of these markets has been based on the fact that the extensiveness of studies on the two markets has been based on their success on transparency and full disclosure.

Critical Evaluation of the theories Two theories will be analyzed; the agency theory and the efficient markets hypothesis. University of Chicago Working Paper, pp. A gap of inconsistency in the efficiency arises which needs to be investigated.

The aim of this research was to carry out a comparative study of the capital markets reactions to financial reporting. Organizations are very complex entities; and accounting disclosures affect the reactions of the capital markets owing to the level of tradeoffs of interests that arise between the different stakeholders.

However, further tests reveals that abnormal market reactions inconsistencies existed from empirical tests by Taffler in the year were conducted in the UK. This author identifies valuation and comparability to be influenced mainly by the cretria of availability, predictability and reliability.

The literature review has covered different forms of theories that are involved through the reactions of the capital markets to financial reporting. Most of the studies are largely based in the UK and USA, especially the initial findings that were aimed to support this theory.

The following findings were made.Literature Review. The Indian capital market, for equity and corporate debt, also dates back to colonial period with the establishment of the first stock market. Literature reviews occur in a two-fold manner; theoretical literature review and empirical literature review.

The aim of this research was to carry out a comparative study of the capital markets reactions to financial reporting. review the literature on the determinants and patterns of cross-border capital raisings and their effects on developments of domestic markets, highlighting the differences between mature and emerging economies.

Literature Review On Financial Crisis And Capital Market “Global Financial Crisis: Regulatory Arbitrage and Paradigm Shifts” In earlythe economy ground to an almost complete halt. As the stock indexes were overwhelmed by a virtual tsunami of never relenting red digits.

Empirical Literature on Financial Crises: Fundamentals vs. Panic I. Goldstein University of Pennsylvania, Philadelphia, PA, USA bank’s capital, reducing the amount available for inves-tors who come in the future.

This creates strategic A banking crisis in this literature is manifested by large withdrawals out of the banking system.

medium-term labour market and social challenges of the current economic and financial crisis” and the concluding synthesis report “Building a sustainable job-rich recovery”. There is a robust modern literature on financial crises that policy makers in newly affected countries can.

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Literature review on financial crisis and capital market
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