College

College of Business Administration (CBA)

Date of Last Revision

2023-05-03 16:40:10

Major

Finance - Corporate Financial Management

Honors Course

6100:497

Number of Credits

2

Degree Name

Bachelor of Business Administration

Date of Expected Graduation

Spring 2020

Abstract

Previously crash- risk studies have focused on assessing at the firm level the likelihood of a firm’s equity to crash (a rapid decline in value), apart from the dynamics of its respective country-level market. In this study, however, I examine the determinants of an overall countrylevel equity crash apart from the dynamics of the global market. I will argue that this is a very different focus of analysis that will provide valuable information to both investors and policy makers. Expansion of credit and subsequent equity-market bubbles and crashes are of particular concern to foreign direct investors (FDI), as country-level equity crashes are known to lead to lower levels of FDI, nonperforming loans, and lead to nonperforming loans, banking crises, contraction of credit, and ultimately economic crises and sovereign defaults.

Research Sponsor

John Goodell

First Reader

Eric Brisker

Second Reader

Mario Mastrandea

Honors Faculty Advisor

Terry Daugherty

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