An Overview on Silicon Valley Bank Failure in Europe: Causes and Effects | Chapter 4 | Contemporary Research in Business, Management and Economics Vol. 5

This chapter examines how Europe reacted to the collapse of Silicon Valley Bank (SVB). The SVB was specialized in banking for technological startups, and it provided financing for almost half of US venture-backed technology. On the 10th of March, SVB collapsed, the second-largest failure since the financial crisis of 2008. The banking failures can significantly impact the financial system and the financial markets, affecting depositors and investors’ confidence. In this chapter, the Silicon Valley Bank failure is analyzed as a case study. We describe the main causes that contributed to the collapse of SVB, examining the consequences in Europe in terms of effects on financial systems, markets, and startup ecosystem, as well as in terms of reactions from supervisory authorities. The results show that the lack of a risk culture and a limited specific knowledge of the dynamics of the sector generated disastrous consequences, leading to the collapse of SVB. This chapter contributes to the literature highlighting how political events can have significant impacts on the way financial institutions are regulated and supervised. The study represents a starting point for investigating the consequences of the SVB bankruptcy, increasing the reflections on effects of the failure in Europe with other factors that can affect financial systems and market to formulate any new hypotheses for further future studies.

Author(s) Details:

Domenica Federico,
Faculty of Economics, eCampus University, Novedrate (CO), Italy.

Francesco Napoli,
Faculty of Economics, eCampus University, Novedrate (CO), Italy.

Antonella Notte,
Faculty of Economics, eCampus University, Novedrate (CO), Italy.

Please see the link here: https://stm.bookpi.org/CRBME-V5/article/view/14183

Ethics, Public Policies, Financial Markets, and Institutions: New Global Policies, Financial, and Social Crises | Chapter 1 | Current Topics on Business, Economics and Finance Vol. 1

In this unit are discussed some righteous issues regarding the fiscal market, the institutions, and new public policies, monetary and monetary one. Morality and morality are very important for a society and a country with its own government and reveal the wellbeing of allure structure, allure business, its organizations, its policies, allure government, allure education, its advantage system, and its life after death. All these foreshadow the future of the country with its own government and the wellbeing of its voters and future generations. In a country place ethics have been deserted, we can, from historical experience, surely to predict allure future. It has no future. A democratic government has to dictate fair regulations, laws and order, to hold the entire humankind at an advanced ethical level, however this knowledge of thousands of age of history, sophistication, experience, tradition, and disclosure. Public policy (both monetary and monetary), institutions, organisations, and instrumentalities must all be guided by ethical, fair, and moral standard. The latest two financial, economic, and public crises, particularly, the last one, the suspicious coronavirus (COVID-19) universal, the lockdowns, the elections irregularities, could have been prevented or curtailed if the accountable generators (“elites”) of these occurrences were ethical and respectful towards the different people, different nations, and to our democratic plan. But, because they are acting in favor of their egoism and against social interest, they should be controlled by the independent sovereign countries with its own government and democratic governments of the realm.

Author(s) Details:

Ioannis N. Kallianiotis,
Economics/Finance Department, The Arthur J. Kania School of Management, University of Scranton, Scranton, PA 18510-4602, USA.

Please see the link here: https://stm.bookpi.org/CTBEF-V1/article/view/9704

The Role of Market Capitalization and Tweet Volumes in Shaping Investors Behavior Post Biotechnology IPOs | Chapter 14 | New Innovations in Economics, Business and Management Vol. 2

 This research examines the impact of social media, notably Twitter, on stock returns for biotechnology companies after their first public offerings (IPOs). While the risk associated with biotechnology initiatives lessens as the product development cycle progresses, the absolute capital requirements increase. The findings show positive but insignificant cumulative average abnormal returns (CAARs) of 1.97 percent in the first 25 days after the IPO, followed by a drop of tens of percentage points over the next three years. However, when the sample firms are divided into two subsamples based on market value, either under or over USD 500 million, the overall results shift substantially. Companies with a market capitalization of less than USD 500 million have negative CAARs right after the IPO, but this negative CAAR becomes substantial only around day 50. Firms with a market value of more than USD 500 million have positive CAARs right after the IPO, which become significant by day 50 and stay that way for the rest of the year. These findings can be explained by the short attention span of investors, which grows until the end of the quiet period and then declines in the post-IPO years for small businesses. An analysis of Twitter activity and stock returns reveals a strong link between the two, implying that investors' interest in companies is mirrored in their Twitter usage.

Author(S) Details

Smadar Siev
Faculty of Business Administration, Haifa Campus Port Gate Building, Ono Academic College, HaNamal 32, Haifa 3303201, Israel.

View Book:- https://stm.bookpi.org/NIEBM-V2/article/view/4750

Determination of Behavioral Finance Patterns Affecting Investors’ Activity in Capital Markets | Chapter 10 | Insights into Economics and Management Vol. 8

 The rationality model is being challenged by cognitive psychologists' research. It has begun to penetrate economic modelling, with a large amount of experimental documentation of cognitive weaknesses accumulated thus far, raising the question of whether behavioural decision models, which capture hope or anticipation to risk in experimental settings, will help us understand investor behaviour in financial markets.

We're attempting to paint a complete picture of the focus hypothesis we've built around pricing trends in the creative pharmaceuticals market. We attempt to encompass it from many perspectives: first, we provide a general psychological context for Attention theory, which describes cognitive processes such as the rule of selective attention in short-term processing. Second, we look at the financial aspects of selective focus, and finally, we look at real-world investor activity in the context of a significant milestone in the drug development process: the advisory committee milestone. Our results, together with the current low interest rate environment in the world markets, have resulted in market confidence in this high-risk area. It is focused on 78 events from 2002 to 2014, revealing a perplexing pattern of investor conduct. We see increased trading around regulatory events, which seems to be speculative "micro bubbles." In this article, we attempt to paint a complete picture of the attention hypothesis by combining it with the "tiny bubbles" that we believe exist in the drug production industry.

Author (s) Details

Tiran Rothman
School of Management & Economics, Wizo Academic College, Haifa, 31090, Israel.

View Book :- https://stm.bookpi.org/IEAM-V8/article/view/658