Article abstract

Journal of Economics and International Business Management

Research Article | Published May 2021 | Volume 9, Issue 1, pp. 20-34.

doi: https://doi.org/10.33495/jeibm_v9i1.21.108

 

Financial Implications of Capital Controls Enforcement on Large-Cap Companies Listed on the Athens Stock Exchange

 


 

 

Aikaterini Derdemezi1

Kanellos Toudas2

Paraskevi Boufounou3*

Georgios Georgakopoulos4

 

Email Author

 

1. National Kapodistrian University of Athens, Greece.


2, 3. Department of Economics, National and Kapodistrian University of Athens, Greece.

 

4. Department of Agricultural Economics and Rural Development, Agricultural University of Athens, Greece.


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Citation: Derdemezi A, Toudas K, Boufounou P, Georgakopoulos G (2021). Financial Implications of Capital Controls Enforcement on Large-Cap Companies Listed on the Athens Stock Exchange. J. Econ. Int. Bus. Manage. 9(1): 20-34. doi: 10.33495/jeibm_v9i1.21.108.

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 Abstract 


The aim of this study is to examine the effects of the capital controls on the process and financial performance of large-cap companies operating in Greece listed on the Athens Stock Exchange. More specifically, the markets’ behavior is studied, as well as the reactions of the investors after the announcement of the implementation of the measure. The mixed method (quantitative research with questionnaires and qualitative research with interviews with financial managers and senior executives) was used. The main findings of the research are that the measure of capital controls: was deemed necessary and effective based on its aims, which were (a) the protection of the mass withdrawal of deposits and (b) the stabilization and security of the financial system had a significant effect on increasing the use of electronic banking. But also had significant negative effects: on the investment decisions of companies, on their competitiveness and reputation abroad, on the ability to raise new capital, on their liquidity and therefore on their ability to cope with key functions, as well as on their imports and exports.

Keywords  Capital controls   listed large-cap companies   crisis   Athens Stock Exchange   Greece   

 

 

Copyright © 2021 Author(s) retain the copyright of this article.

This article is published under the terms of the Creative Commons Attribution License 4.0

 

 

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