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This study aims to examine the systemic risk contagion in banks from 15 US states using extreme shocks in their distance to risk.

The authors contemplate a model that inputs co-exceedances in the base US states’ banking sector as the dependent variable and the co-exceedances in other states’ banking sector (along with other underlying variables of a banking system) as the explanatory variables.

The authors find smaller states transmit and receive more systemic shocks than their larger counterparts and larger states exhibit a better shock-resisting capacity than their smaller counterparts. The authors also find that bigger shocks are more contagious than the smaller shocks.

This will be the first paper that will investigate the inner linkage of US states’ banking network using three different distance to risk methods, thus providing timely guidance for regulators.

The study investigates the interdependence of the stock markets between the following countries Hong Kong, Japan, Korea, Taiwan, Indonesia, Malaysia, Philippines, Singapore, Thailand and the advanced stock markets of Australia, Germany, United Kingdom and the United States. Using data from 1994 to 2003 the paper employs both correlation, causality and cointegration analysis to describe the behaviour of the above stock market indices over the period pre and post the 1997 Asian Financial Crises. The paper investigates both the short- and long-run relationships between the Asian markets and the markets of selected advanced industrial countries.

Before the 1997 Asian Financial Crisis, Thailand had the fastest growing level of foreign direct investment (FDI) inflows amongst Asian economies. The general objective of this research is to evaluate the determinants of FDI investment in Thailand post the 1997 crisis; our empirical investigation of the determinants of Thailand's FDI relates to the period 1998–2008. The end of this period also covers the global financial crisis of 2007–2008; the effects of this crisis on FDI generally may be premature to judge given that most FDI projects have lead times ranging from 12 to 18 months. The chapter also provides an update covering the latest available FDI data by comparing 2008–2009 quarter 1 FDI flows both regionally and for Thailand.

This study aims to investigate both market concentration and bank competition of banking across six emerging Asian countries (e.g., Bangladesh, Indonesia, India, Philippines, Malaysia, and Vietnam) over pre and post the 2008 global financial crisis. The conduct parameter approach following the framework suggested by Uchida and Tsutsui (2005) is used to estimate bank competition in these countries. The study employs both seemingly unrelated regression (SUR) and three-stage least squares (3SLS) to estimate simultaneously the system of equations in our model. Generally we find a negative association between market concentration and bank competition across most of the countries in the study suggesting that banks in concentrated markets collude to generate higher profits. Monopolistic competition was the best description of competitive structure of banking across the majority of countries investigated by this study. The study fills the gap in the banking literature by investigating bank competition, concentration, and their relationship across emerging Asian economies over the 2008 global financial crisis. Moreover, several policy implications for banking industry are suggested.

One of the perceived benefits of a flexible exchange rate system is the insulation of the domestic economy from foreign shocks, and the potential for independent policy actions. In view of the considerable uncertainty, which pervades appropriate specification of the relevant theoretical models, the empirical analysis of this paper adopts the vector autoregressive approach. Using quarterly data over the period 1975(2)‐1995(2), models are estimated which test the effect on exchange rates of fiscal variables for seven countries (Australia, Canada, Britain, France, Germany, Italy and the USA). In testing the exchange rate response to a bond financed fiscal expansion, a tax financed fiscal expansion and to a swap of taxes for debt with no change in the level of government expenditure, the results for the seven countries over the recent float are mixed because the impulse response functions to the shocks do not have the same pattern in every country.

Zaleha Abdul Shukor is a Senior lecturer in Accounting at the School of Accounting, Universiti kebangsaan Malaysia. She obtained Masters of Commerce from Macquarie Uni, Australia and BSc (Acctg) from Syracuse Univ, NY. She is pursuing her PhD at Universiti Teknologi MARA, Malaysia. Her research interests include, financial reporting and capital market-based research.

This paper examines roles of mandated employee participation rights (EPRs), such as works council legislation, in corporate governance. Links between employment and corporate relationships are stressed. Market failure arguments are developed, predicting that EPRs, and the interaction between EPRs and investments in skills, can positively impact productivity; preliminary evidence from German establishments is generally supportive. A qualitative appraisal concludes that EPRs have not harmed economies that adopt them. Policies to expand EPRs in the US are introduced, jointly encouraging skill development and employee decision-making participation, full rights for employee stock ownership plan (ESOP) participants, legal regulation of terms such as “participation,” and EPR extension services.