This study is going to attempt to explain the cause, the impact and the solution of the Global Financial Crisis and to examine further the change in corporate performance during 2006 to 2009. Empirical results, based on the information obtained from the Bloomberg Global 500 firms in 2007, showed that there is a significant positive relation between the performance of equity returns and profitability (ROA), but no relation with asset turnover. Furthermore, the better corporate performance with lower debt ratio is also documented.

Recommendation from Advisor and Committee Verification i
Abstract ii
Dedication iii
Acknowledgements iv
List of Contents v
List of Figures .vi
List of Tables .vii
Introduction 1
1.1 Research Background and Motivation 1
1.2 Corporate Performance Literature 1
1.3 Research Objective and Questions 3
1.4 Methodology 3
The Cause of Global Financial Crisis 4
2.1 Introduction 4
2.2 History of Housing Mortgage Loans 4
2.3 Mortgage Designs 7
2.4 Overview of Subprime Mortgage Securitization 9
The Impact of Global Financial Crisis 12
3.1 The Features of Financial Crisis 12
3.2 Global Impact 12
The Solution of Global Financial Crisis 17
4.1 Financial Perspective 17
4.2 Economic Perspective 17
Empirical Results (Corporate Performance) 19
5.1 Model and Methodology 19
5.2 Sample and Data 19
5.3 Research Findings 20
Conclusion 22
6.1 Implications and Conclusion 22
6.2 Limitations and Future Research 22
Reference 23

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