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Credit Rating Agency Downgrades and the Eurozone Sovereign Debt Crises

PublikationArtikel (med peer review)
Andreas Stephan, Christopher Baum, Dorothea Schäfer, Europakris, Företagandets villkor

Sammanfattning

This paper studies the reaction of the Euro’s value against major currencies to sovereign rating announcements from Moody’s, S&P and Fitch CRAs during the Eurozone debt crisis in 2010–2012 based on event study methodology combined with GARCH models. We also analyze how the yields of French, Italian, German and Spanish government long-term bonds were affected by CRA announcements. Our results reveal that CRA downgrades, watchlist and outlook announcements had no impact on the value of the Euro currency but increased exchange rate volatility. At the same time, downgrades as well as negative outlook announcements increased the yields of French, Italian, and Spanish bonds and even affected the German bond’s yields. This shows that the monetary union has led to a breakdown of the consequences of the rating shocks between currency value and sovereign bond yields. The reason is that part of the rating shock is absorbed by an internal repricing of sovereign bonds.

Related content: Working paper No. 224

Baum, C., Schäfer, D., & Stephan, A. (2016). Credit Rating Agency Downgrades and the Eurozone Sovereign Debt Crises. Journal of Financial Stability, 24(2016), 117-131. DOI: 10.1016/j.jfs.2016.05.001


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The openness of open innovation in ecosystems
Artikel (med peer review)Publikation
Öberg, C., & Alexander, A.
Publiceringsår

2019

Sammanfattning

Open innovation has rendered increased interest both in practice and research, and has expanded from dyadic transfers of ideas, to ecosystem levels. Knowledge is at the heart of open innovation, and this paper describes and discusses knowledge-transfer linkages for open innovation. It does so based on a literature review. The paper links together open innovation research with general management research to categorise and discuss linkages among parties in terms of their openness and how they relate to knowledge management. Conclusions indicate that openness needs to be considered in different dimensions that also links to different knowledge management outcomes. The paper’s contribution consists of how it connects open innovation research to the general management literature, and how it builds a practical understanding of how linkages between firms can be categorised to aid firms to consider which mechanisms they may choose and why.

A revised perspective on innovation policy for renewal of mature economies – Historical evidence from finance and telecommunications in Sweden 1980–1990
Artikel (med peer review)Publikation
Eriksson, K., Ernkvist, M., Laurell, C., Moodysson, J., Nykvist, R. & Sandström, C.
Publiceringsår

2019

Sammanfattning

What is the role of innovation policy for accomplishing renewal of mature industries in Western economies? Drawing upon an unusually rich dataset spanning 9752 digitized archival documents, we categorize and code decisions taken by policymakers on several levels while also mapping and quantifying the strategic activities of both entrant firms and incumbent monopolists over a decade. Our data concerns two empirical cases from Sweden during the time period 1980–1990: the financial sector and the telecommunications sector. In both industries, a combination of technological and institutional upheaval came into motion during this time period which in turn fueled the revitalization of the Swedish economy in the subsequent decades. Our findings show that Swedish policymakers in both cases consistently acted in order to promote the emergence of more competition and de novo entrant firms at the expense of established monopolies. The paper quantifies and documents this process while also highlighting several enabling conditions. In conclusion, the results indicate that successful innovation policy in mature economies is largely a matter of strategically dealing with resourceful vested interest groups, alignment of expectations, and removing resistance to industrial renewal.

The role of business networks for innovation
Artikel (med peer review)Publikation
Öberg, C.
Publiceringsår

2019

Sammanfattning

A business network consists of directly and indirectly connected companies, where social and economic ties help to understand these connection. Innovations could be seen to relate to business networks in two ways: they may result from interaction between business partners, or they would need to fit into, or through changes to interaction patterns among various business partners, be fitted into new or current business networks. In the literature on innovation, the incremental, radical, or disruptive characteristics of the innovations are frequently described as degrees of newness. This paper categorizes characteristics of business networks based on their role to create various types of innovations, and based on the various types’ consequences for the business network. The empirical part of this paper is based on six case-study examples from interviews performed by the author. The findings suggest links between the type of innovation, and the role of the network and network consequences. The paper contributes to previous research through discussing the role of business networks for various types of innovation. Furthermore, the paper contributes to previous research through indicating the various types of innovations’ consequences for the business network. Most previous research on business networks and innovation only concerns itself with how various parties participate in idea generation and co-development of innovations, while the consequences for the business network is not described extensively.

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