This paper investigates the effect of capital market development on severity of economic contraction, and probability of economic downturn. The major finding is that countries with deeper capital market would face less severe business cycle output contraction, and lower chance of an economic...

This paper investigates cross-country evidence on how capital market affects business cycle volatility. In contrast to the large and growing literature on the impact of finance and growth, empirical work on the relationship between finance and volatility has been relatively scarce....

This paper investigates the effect of capital market development on the frequency of recession and the fraction of time the economy in recession using quarterly data of thirty-five countries from 1975 to 2004. The main finding is that frequency of recession is not robustly linked to measures of...

This paper investigates the impact of stress testing results on bank's equity and CDS performance using a large sample of twelve tests from the US CCAR and the European EBA regimes in the time period from 2010 to 2018. We find that passing banks experience positive abnormal equity returns and...

This paper aims to investigate the readiness of the accounting community in Montenegro to implement the Code of Ethics for Professional Accountants. Also, the aim of this paper is to present the existing situation in the accounting profession in Montenegro, especially when it comes to the...

The contribution of institutionally diversified financial sectors to more sustainable growth and financial stability -in particular the role of effective local banking structures -is not always fully appreciated, whether in the context of development cooperation or in policy discussions in the...

The paper assesses the main factors underlying the decreasing profitability in the European banking sector, in comparison with the US. It underscores in particular the role of low interest rates, lower concentration, tighter regulation and the absence of a deep and liquid capital market. A...

This paper examines the relationship between foreign bank entry and financial depth for 57 emerging and developing economies (EMDEs) over 1995-2009. Using various measures of financial depth, the paper also explores the degree to which the relationship between foreign bank entry and financial...

An important dimension of the effects of foreign bank entry on financial sector development relates to that of financial inclusion. Despite its policy significance, the empirical literature offers little evidence on the impact of bank competition generally or foreign bank entry specifically on...