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This study empirically tests the effect of stock risk warning of listed companies on the risk of stock price crash of non-warning companies in the same industry and its mechanism in the Chinese A-share listed companies from 2008 to 2021 as samples. The research results show that the risk warning information has a capital market governance effect on peer companies, that is, the new risk warning information in an industry will alleviate the risk of stock price crash of peer companies. This conclusion remains robust after a series of robustness and endogeneity tests. The mediating mechanism test shows that the idiosyncratic information content of the stock price mediates the process of risk warning information affecting the risk of stock price crash of peer companies. The heterogeneity test shows that the governance effect of risk warning information on the risk of stock price crash of peer companies is more significant when the problem of company agency is more serious, the competitive market position is lower, or the differences in opinion among investors are smaller. This study provides empirical evidence for the necessity of the existence of the risk warning system. Additionally, it provides a reference for the capital market risk supervision of similar transition economies such as China. [ABSTRACT FROM AUTHOR]

Under probability weighting, entrepreneurs with skewness preference tend to seek rightskewed and avoid left-skewed risks. We show that Chinese firms managed by CEOs with professional epidemic experience, i.e., who previously experienced the outbreak of SARS during their tenure as high level executives, have a lower stock price crash risk measured by the negative skewness of stock prices in subsequent periods. In particular, those firms intentionally avoid stock price crashes by adopting more conservative strategies in decisionmaking. Overall, we provide the first evidence on the unintended effect of entrepreneurs' subjective judgments of the probabilities of disease outbreaks on financial market stability. These have long-term implications for the financial system. [ABSTRACT FROM AUTHOR]

The outbreak of the coronavirus in December 2019, with its accompanying declaration as a pandemic by the World Health Organisation in March 2020, resulted in lockdown of the global financial markets. This paper uses data from pre-coronavirus, coronavirus endemic and coronavirus pandemic periods to evaluate the impact of coronavirus pandemic on stability of Africa stock markets, sovereign bond markets and U.S. dollar exchange rates in Kenya, Morocco, Nigeria and South Africa as well as Africa Sharia equity and Sukuk indices. Findings from study suggest that Africa financial markets became very unstable during the coronavirus pandemic than during the endemic and pre-coronavirus periods. Results from bivariate regression model show evidence of negative impact of coronavirus pandemic on financial market returns. The results further show that Africa financial markets return volatility increases as the number of coronavirus cases increases. Overall, the findings suggest that coronavirus has negative impact on financial markets’ returns and exacerbated financial markets instability thus retarding sustainable economic development in the continent. [ABSTRACT FROM AUTHOR]

This study aimed to assess the effect of corporate low-carbon transition on financial market stability. For this purpose, this study used the panel data of nonfinancial companies listed on China's A shares from 2007 to 2020, considering stock price crash risk. The results revealed that the low-carbon transition of enterprises intensifies the risk of stock price crashes. The positive correlation between the low-carbon transition of enterprises and the stock price crash risk is more significant for companies lacking environmental information disclosure and green innovation, in addition to companies in high-polluting industries and noncarbon emission pilot areas. The conclusions were confirmed to be robust by introducing other control variables into the model, conducting instrumental variables test, and using the difference-in-differences method. [ABSTRACT FROM AUTHOR]

In this study, the financial market stability is investigated for the emerging market countries of Morgan Stanley Capital International (MSCI), Europe, the Middle East and Africa index by using quantile regression based new empirical test proposed by Baur and Schulze (2009). The daily logarithmic return dataset covers the period of June 1, 2002 to February 17, 2011. The results show that Poland and Morocco exhibit financial market stability among the investigated countries. [ABSTRACT FROM AUTHOR]

A stable stock market is essential to the entire financial market and economy stressing the significance of monitoring the stability of the stock market. In this paper, we propose stock market stability index (SMSI), which monitors market stability through a statistical model. SMSI is based on the idea that the proper statistical model for the past stable period would significantly fail when the current market becomes unstable (see also Kim et al. [9]). To construct SMSI, the behavior of the regular stock market index on the past stable period is investigated with the asymptotic stationary autoregressive model (ASAR) proposed mainly for non-stationary time series by Kim et al. [4]. Major advantage of this approach is to provide the probability (or p-value) of the current stock market's stability. As an empirical example, SMSI for the Korean stock market is developed in order to demonstrate its potential application. [ABSTRACT FROM AUTHOR]

Financial market stability has been a hot topic in the last decade due to its importance for both policymakers and international investors. However, formal testing of this phenomenon and its consequences is still insufficient. This is especially true for the Central and Eastern European (CEE), as well as South and Eastern European (SEE) markets, which are the focus of this research. The results of this research indicate that Serbian, Hungarian, Bulgarian, Croatian, Slovenian, Romanian and Ukrainian stock markets respond more to the systematic shocks in the SEE index compared to CEE. The opposite is true for the Czech and Polish markets. Since the stability was confirmed for the Bosnian, Bulgarian and Slovenian markets for the SEE regional index and for the Bulgarian, Slovenian and Slovak markets for the CEE regional index; these results could be exploited by policymakers in a way that they should focus more on the country-specific shocks and how to deal with specific problems within the country itself when they occur. [ABSTRACT FROM AUTHOR]

The article presents a study which analyzed trends in financial market concentration and its implications on the stability of the U.S. financial market and the need for substitution. The link between concentration and the risk of severity of market instability is explored. Topics discussed include regulatory changes of the 1990s, growth of the over-the-counter derivatives markets, secondary-market trading by primary dealers and global custody.

This is an informal and sketchy review of five topical, somewhat unrelated subjects in quantitative finance and econophysics: (i) models of price changes; (ii) linear correlations and random matrix theory; (iii) non-linear dependence copulas; (iv) high-frequency trading and market stability; and finally—but perhaps most importantly—(v) “radical complexity” that prompts a scenario-based approach to macroeconomics heavily relying on Agent-Based Models. Some open questions and future research directions are outlined.