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Quin paper tenen els clubs socials en la promoció de les relacions de cooperació entre els agents econòmics? Mitjançant l’estudi de les xarxes històriques de banquers d’inversió als Estats Units abans de la Segona Guerra Mundial, proposem que els llaços en forma de pertinença compartida a un club social faciliten la creació estratègica de cohesió entre empreses i dins d’una mateixa empresa, la qual guia les transaccions econòmiques. El nostre treball se centra en l’empresa de Nova York J.P. Morgan & Co., el principal banc d’inversió nord-americà abans de la Segona Guerra Mundial. A traves d’anàlisis estadístiques i qualitatives, demostrem que les relacions establertes en els clubs socials van influir en la propietat de l’empresa, la participació en sindicats i la composició dels consells d’administració. El nostre estudi avança en la literatura sobre les elits socials i en la identificació de la interacció estratègica entre l’arrelament social i l’acció econòmica a traves d’organitzacions socials, destacant el paper únic dels clubs socials com a llocs històrics de col·laboració econòmica durant l’era progressista als Estats Units., What role do social clubs play in the facilitation of cooperative relationships between economic actors? By studying the historical networks of investment bankers in the United States pre-World War II, we propose that social ties in the form of shared social club memberships facilitate the strategic creation of interfirm and intrafirm cohesion that guides economic transactions. The focus of our paper is the New York firm of J. P. Morgan & Co., the leading American investment bank before the Second World War. Through statistical and qualitative analyses we demonstrate that social club ties influenced firm ownership, syndicate participation, and interlocking directorate board memberships. Our study advances the literature on social elites by identifying the strategic interplay between social embeddedness and economic action through social organizations, highlighting the unique role of social clubs as historical sites of economic collaboration during the Progressive Era in the United States., ¿Qué papel desempeñan los clubes sociales en la promoción de las relaciones de cooperación entre los agentes económicos? Mediante el estudio de las redes históricas de banqueros de inversión en Estados Unidos antes de la Segunda Guerra Mundial, proponemos que los lazos sociales en forma de pertenencia compartida a un club social facilitan la creación estratégica de cohesión entre empresas y dentro de una misma empresa, la cual guía las transacciones económicas. Nuestro trabajo se centra en la empresa neoyorquina J.P. Morgan & Co, el principal banco de inversión estadounidense antes de la Segunda Guerra Mundial. A través de análisis estadísticos y cualitativos, demostramos que los lazos de los clubes sociales influyeron en la propiedad de la empresa, la participación en sindicatos y la composición de los consejos de administración. Nuestro estudio avanza en la bibliografía sobre las élites sociales al identificar la interacción estratégica entre el arraigo social y la acción económica a través de organizaciones sociales, destacando el papel único de los clubes sociales como lugares históricos de colaboración económica durante la era progresista en Estados Unidos.

Nel novembre 2019 MEDIOBANCA ha aperto l’archivio storico alla consultazione pubblica arricchendo l’insieme dei materiali ora disponibili. Questo scritto ha lo scopo di riflettere sull’opportunità di rivedere alcuni giudizi espressi in passato sulla banca di Enrico Cuccia.

Almost 60% of mergers and acquisitions are concluded with the aid of multiple third-party advisors. While there has been work on the impact of advisors, the theoretical and empirical implications of using multiple advisors remain unclear. Using insights from the "cheap talk" literature, we derive hypotheses on the impact of multiple advisors. Expanding upon this, we then consider the moderating impact of advisor reputation/quality and deal timing (in terms of merger wave periods vs. non-merger wave periods), as factors that both the cheap talk and the literature on single advisors highlight as relevant. We test our hypotheses using a sample of 10,544 large US acquisitions, and evaluate the impact of advisors using an event study and abnormal returns. Our results support a value-creating role for single advisors—we find that deals with single advisors create a higher expectation of value-creation—but find little support for the use of multiple advisors. Furthermore, we show that the moderating effect of advisor reputation, and deal timing, are contingent on the number of advisors. In doing so, we make a number of academic and practical contributions to the discussion of advisors in mergers and acquisitions.

Firms frequently change their business models in order to respond to internal and external challenges. This study aims to explore how investments banks adjust their business models in response to internal and external challenges. Based on a qualitative data from ten major investment banks operating in the largest financial market in the Middle East, we show that investment banks can achieve resilience by adjusting their business models through continuous activity changes in response to internal and external challenges. Specifically, investment banks adjust their business models through deploying alternative combinations of activities from a broad repertoire of activities. Within the same bank, divisions that respond to external challenges tend to sustain their performance, whereas resilient divisions that respond to both internal and external challenges tend to bounce back or achieve substantial increase in performance levels. This study contributes to the literature by proposing resilience as an alternative approach to business model innovation and by providing insight into how firms adjust their business models by altering specific activities in response to both internal and external challenges.Other Information Published in: Asia Pacific Journal of Management License: https://creativecommons.org/licenses/by/4.0See article on publisher's website: http://dx.doi.org/10.1007/s10490-020-09723-z

The article discusses the activities of investment banks in the stock market. The difference between an investment bank and a commercial bank is noted. The types of services provided by the investment bank to both issuers of securities and buyers of financial instruments are given. Investment bank helps companies issue debt obligations, guarantees placement of securities and assumes risks associated with the purchase and sale of securities. The role of investment banks in the market of mergers and acquisitions is noted.

ilustraciones, gráficas El presente trabajo muestra y analiza el comportamiento de la eficiencia relativa de las entidades bancarias en Colombia entre los años 2017 a 2019, desde el punto de vista de la inclusión financiera. La metodología utilizada es el Análisis Envolvente de Datos (DEA, Data Envelopment Analysis), metodología matemática que evalúa la eficiencia relativa de las unidades organizacionales, para conocer la relación de transformación de entradas y salidas y establecer la frontera de eficiencia. Dicha metodología tuvo en cuenta una orientación a las entradas, con el objetivo de mantener estable el nivel de producción mientras se busca la máxima disminución de las entradas. (Texto tomado de la fuente) This paper shows and analyzes the behavior of the relative efficiency of banking entities in Colombia between the years 2017 and 2019, from the point of view of financial inclusion. The methodology used is the Data Envelopment Analysis (DEA), a mathematical methodology that evaluates the relative efficiency of the organizational units, to know the transformation ratio of inputs and outputs and establish the efficiency frontier. This methodology took into account an orientation towards inputs, with the aim of keeping the level of production stable while seeking the maximum decrease in inputs. Maestría

Modern financial systems are highly interconnected. Institutions or individuals form connections with each other in different ways for different purposes. Networks, broadly understood as a collection of nodes and connections between nodes, can therefore be a useful representation of financial systems. Using social network analysis (SNA), this thesis provides novel empirical evidence on the effects of network centrality, which refers to an actor’s position and level of connectedness in a network, on Australian initial public offering (IPO) firms that went public between 2001 and 2017. The thesis includes three essays that aim to examine: (1) the relationship between investment bank networks and the accuracy of IPO prospectus earnings forecasts, (2) the overinvestment problem associated with excess cash in seasoned versus newly public firms, and whether investment bank networks affect the performance of IPO firms with excess cash, and lastly, (3) the relationships between board networks, cash holdings, and IPO firms’ performance. The first empirical essay investigates whether investment banks with more central network positions could improve earnings forecast accuracy in the context of Australian IPOs issued during the 2001-2017 period. Using SNA to construct investment bank network centrality, I show that IPOs backed by more central investment banks tend to have higher absolute offer price revision, exhibit greater forecast accuracy, and are associated with more pessimistic forecasts. Taken together, the results support the idea that, relative to their counterparts that are peripheral in the network, more central investment banks may produce more information in the IPO process and certify the quality of IPO issuers by encouraging more conservative and accurate earnings forecasts. This study makes an important contribution by adding to the burgeoning literature on network studies in the context of IPO investment banking. To the best of my knowledge, this study is the first to examine the relation between investment bank networks and earnings forecast accuracy, particularly in a setting where forecast disclosure is a voluntary and reasonably common practice (such as that of Australia). This study also has significant implications for key participants in the Australian IPO market. For investment banks, working in syndicates when managing an IPO is essential not only for risk-sharing purposes but also to gain knowledge and experience that enhance their certification ability. For issuers, hiring more central investment banks may help them prepare more accurate forecasts and to avoid increased exposure to costly litigation risks. As for potential investors, the presence of more central investment banks in an IPO could provide some assurance of the issuer’s forecast accuracy, which is useful for investment decision-making. The second empirical essay analyses the overinvestment problem associated with excess cash holdings in ASX-listed firms for the period between 2001 and 2017. First, I show that firms with higher excess cash are associated with higher capital expenditures and lower firm performance, indicating that cash-rich firms tend to invest their excess cash in less-profitable projects. I find that this overinvestment problem is more pronounced among newly public firms that have undergone an IPO within the prior three years. Next, I test whether investment bank networks could reduce this overinvestment problem. I find that IPOs with excess cash managed by more central investment banks experience lower capital expenditures but higher firm performance. The evidence shows that investment banks benefit from being well connected in the network; hence, the banks can better monitor and advise the IPO firms, constraining managerial opportunism regarding the use of excess cash. This study contributes to the literature as the first study that brings together two streams of research which have not overlapped—that is, the literature on excess cash holdings and the role of investment banks in IPOs. Connecting the two research streams gives new insights into the largely unexplored area of excess cash in IPO firms, and further our understanding of investment bank monitoring and advising roles in the post-IPO period. Finally, the third empirical essay examines how board networks formed by interlocking directors impact the use of cash in Australian IPO firms. I find that well-connected boards tend to reduce their firms’ cash holdings. Further, high-cash firms with well-connected boards often underperform, which is indicative of their suboptimal investment decisions. As excess cash accumulates, firms with well-connected boards prefer to spend cash on capital expenditures rather than returning it to shareholders through dividends. In light of two competing views on connected directors—i.e. the reputation hypothesis and the busyness hypothesis—the findings are closer to the latter. This study represents the first attempt in the literature to address the impact of board networks on cash holdings in IPO firms. The evidence presented in this study adds to the ongoing debate regarding the benefits versus the drawbacks of board networks, casting new light that IPO firms with more connected directors are associated with less efficient use of cash. In the absence of regulation, the evidence may lead us to call for policies that limit board networks in Australia. Nonetheless, it is worth acknowledging that prescribing the appropriate numerical limit for multiple directorships is challenging for regulators since firms’ sizes and the complexity of the issues their boards face vary widely from one firm to another.

The subject of the study is the information systems – operators of stock markets and risks of financial cyber–fraud. The aim of the study is to review information and technology systems of the modern stock market and their functional capabilities, as well as to identify the most popular types of electronic financial fraud. Research methods. The work uses the dialectical method of scientific knowledge, the method of analysis and synthesis, the comparative method, the method of data generalization. Results of work. The article considers the key features of modern stock information and communication technologies («Reuters 3000 Xtra», «MetaTrader», «QUIK», «NetTradeX», «TraderStar», etc.). The emphasis is on the need to take into account their modular structure when choosing the appropriate software package to solve specific operational problems in the electronic securities market. The most common types of financial cyber–crime in Ukraine and in the world are described and characterized. Conclusions: Information systems technology of stock market services have a different structure and operational purpose. Between them, some rely on fuzzy sets, the other – on simulation models, and the third – on elements of artificial intelligence. Financial–market threats to stock ICTs include operational–technological, subjective–organizational, regulatory, and instrumental and object– oriented risks. The most widespread types of financial cybercrime are now vishning, andsdropping, skimming, and cryptography of capital from the national economy.

В работе проведен анализ динамики и структуры рынка инвестиционно-банковской деятельности России, описаны уровень конкуренции, основные вызовы рынка. Составлен рэнкинг инвестиционных банков по показателям объема клиентской базы и оборота операций с ценными бумагами. Проанализирована структура рынка по суммарному объему владения акциями и облигациями на Московской бирже в разрезе ведущих представителей. Рассмотрена динамика и место инвестиционного кредита в инвестиционно-банковской деятельности России. Сформулированы проблемы, которые сдерживают развитие инвестиционно-банковской деятельности России., The paper analyzes the dynamics and structure of the investment banking market in Russia, describes the level of competition, the main market challenges. A ranking of investment banks was compiled in terms of the volume of the client base and the turnover of securities transactions. Analyzed the structure of the market by the total volume of ownership of shares and bonds on the Moscow Stock Exchange in the context of leading representatives. The dynamics and place of the investment loan in the investment banking of Russia are considered. The problems that constrain the development of investment banking in Russia are formulated.

Why does professional misconduct persist in the face of media scrutiny? In this study, we explain how professional norms can be at odds with societal norms and how the behaviors they trigger can be perceived as misconduct. Most audiences tend to disapprove of wrongdoings, but specific stakeholders may interpret this disapproval as an indication of the focal organization’s level of adherence to professional norms. Building on mixed-methods, we explore the case of the investment banking industry during the financial crisis and suggest that corporate customers were favorably biased by the reporting of banks’ misconduct in the print media as they linked it to the banks’ quality of service. We capture the extent to which banks are associated with misconduct, signaling their adherence to negatively perceived professional norms. We then look at how such signal affects the likelihood for banks to be invited in initial public offerings syndicates. Our findings show that the more banks are disapproved for their wrongdoings, the more likely they are to be selected to join a syndicate. This study suggests that the coverage of misconduct can actually act as a positive signal providing banks with incentives to engage in what is broadly perceived as professional misconduct.

International management literature arguments that foreign firms operate under Liability of Foreignness (LOF). Several previous studies looked at LOF in banks, with contradictory results. Our study however is focused exclusively in the business of Sales and Trading of investment banks. We hypothesize this holds true for this business of investment banks, as the disadvantages of foreignness will be greater than advantages such as access to global markets. We looked at profitability for 87 domestic and foreign investment banks in Brazil for 27 quarters, using Pooled OLS as our statistical model. We found that there is indeed liability of foreignness. Testing characteristics that might mitigate LOF, we found that the smaller psychic distance and large home country economy can have a positive effect in foreign banks profitability. Surprisingly, experience does not appear to have a mitigating effect on LOF. A literatura de administração internacional argumenta que empresas estrangeiras operam sob Liability of Foreignness (LOF). Vários estudos prévios abordaram LOF em bancos, com resultados contraditórios. Nosso estudo, entretanto foca exclusivamente na linha de negócios de Sales and Trading de bancos de investimento. Nossa hipótese central é de que existe LOF nesta linha de negócio dos bancos de investimento, e que as desevantagens de ser estrangeiro serão maiores que as vantagens. Nós analisamos a lucratividade de 87 bancos locais e estrangeiros no Brasil por 27 trimestres, usando Painel Empilhado como metodologia estatística. Os resultados indicam que realmente há LOF. Testando características mitigadoras deste LOF, encontramos indicativos que menor distância psíquica e maior economia no país sede podem ter um efeito positivo na lucratividade de bancos de investimento estrangeiros. Surpreendentemente, experiência não parece ter um efeito mitigador sobre LOF.

We examine the impact of the international diversification of banks on the value of their advice in 1,705 cross-border merger and acquisition (M&A) transactions. We find that bidders engaging internationally diversified advisors face lower announcement returns. An increase of one standard deviation in advisor diversification is associated with an announcement return lower by 92 basis points for a bidder acquiring a listed target. The lower bidder returns are attributable to the lower synergies of the deals being completed. Our evidence suggests that internationally diversified advisors offer lower-quality advice to their clients, since their reputational concerns are weakened by having access to multiple geographies from which they can derive fee-based income. We present further evidence that financial incentives in the form of the advisor’s involvement in deal financing and market incentives in the form of the potential to gain market share in the bidder country may mitigate some of the negative effects of the international diversification of the advisors. Data, as supplemental material, are available at http://dx.doi.org/10.1287/mnsc.2015.2396 . This paper was accepted by Wei Jiang, finance.

We study how career concerns influence banking analysts’ forecasts. Banking analysts’ first (last) earnings forecast of the year is relatively more optimistic (pessimistic) for a bank that could be their future employer. This pattern is not observed when the same analysts forecast earnings of banks unlikely to be their future employer. We use the Global Settlement as an exogenous shock on career concerns and show that this forecast pattern is more pronounced after the Settlement. Moreover, we find evidence that analysts benefit from this behavior as analysts that are more biased in their forecasts of potential future employers are more likely to move to a higher reputation bank.

В статье рассматриваются результаты интегрального рейтинга состояния инвестиционного климата в субъектах Российской Федерации, статистические данные объема инвестиций в основной капитал по регионам. Проанализированы источники финансирования инвестиций: собственные средства компаний, бюджетные средства, банковские кредиты, а также определена роль инвестиционных банков России. Приведены меры по улучшению инвестиционного климата в российских регионах., In the current economic conditions, an effective mechanism for attracting investments to the regional economy is undoubtedly necessary to ensure the effective development of the Russian economy, however, despite the established system of state support for investment activities aimed at stimulating investment processes, providing financial and administrative support to investors, in many Russian regions, the investment infrastructure is insufficiently formed. The article examines the results of the integral rating of the investment climate in the constituent entities of the Russian Federation, the statistical data on the volume of investments in fixed assets by regions. Also, the sources of investment financing are analyzed: companies funds, budget funds, bank loans. The author also examines the role of investment banks in Russia and proposes measures to improve the investment climate in the Russian regions.

ACQUISITIONS are among the most studied areas in corporate finance research. Still, many questions about acquisitions are unanswered and regularly debated in the literature. One of these questions is whether acquisitions create value for shareholders as well as stakeholders and what factors are related to value creation. The overarching question raised in this thesis is whether and how financial stakeholders and shareholders profit from acquisitions in different scenarios, i.e.: • Do bidder shareholders profit when financial advisors are involved in corporate acquisitions, and does the quality of financial advisors matter? Do high-quality advisors create more bidder shareholder value than lower quality advisors? • Do firms and SPAC shareholders profit from SPAC acquisitions? How do these firms (SPAC target firms) perform in comparison to firms that use an IPO to go public? This thesis consists of three empirical articles in which I address the above outlined questions. The first article focuses on the European market and asks whether the involvement of advisors in corporate acquisitions matters for bidder value creation. Although theoretical frameworks predict a positive relationship between advisor involvement and shareholder value creation, it is not confirmed by empirical evidence (see, e.g., Servaes and Zenner, 1996; Wang and Whyte, 2010). My results suggest that advisors provide value to their clients only when both the bidder and the target are located in the UK. Moreover, a difference-in-difference analysis, using a major European regulatory reform, indicates that advisors matter for shareholder value creation in acquisitions. The second article focuses not only on the question whether an advisor is involved in an acquisition but also on whether the quality of the advisor plays a role. In theory, high-quality advisors should be able to create more shareholder value for their clients than lower-quality advisors (see, e.g., Golubov et al., 2012). However, different authors find an insignificant, negative or positive relationship between advisor quality and value creation. Since these studies rely on advisor market shares or related measures to assess advisor quality and since evidence suggests that advisor market shares are not a good predictor of advisor performance (Bao and Edmans, 2011), we develop a new proxy to capture advisor quality. We define high-quality advisors as advisors that have won an award of excellence (i.e., best M&A house) and focus on the North American market. The results suggest that there is a positive relationship between award winners and value creation. Moreover, clients of award winners seem to outperform clients of non-award winners in the long term and seem to realize greater synergies. The results hold when we consider the endogenous choice of an advisor. Finally, it seems that award winners put more effort into acquisitions that are more visible. The last article focuses on SPAC acquisitions, which combine acquisitions with initial public offerings to enable firms a fast and cheap listing at a public stock exchange. We compare firms that use SPAC acquisitions to access the public market with firms that use IPOs to access the public market. The results from the analysis of 127 SPAC acquisitions and 1,128 IPOs during the wave of “new-generation” SPACs starting in 2003 suggest that SPAC acquisitions profit firms that are small, highly levered and have low growth opportunities in times with turbulent market environments. It seems that venture capital and private equity investors rather stick to the traditional way, the IPO, to bring their portfolio firms to the public market. Furthermore, firms that access the market via SPAC acquisitions underperform the market and similar IPO firms in the long run. The results of this thesis provide some evidence that financial advisors do play a crucial role and that shareholders might profit from their involvement in acquisitions. Moreover, innovations in financial markets that promise to improve the protection of shareholder interests, such as SPAC acquisitions, should be analyzed by the market participants with great care. On the one hand, they might provide value for certain firms (that are not able to access the public markets via an IPO); on the other hand, they seem to hurt shareholders that are interested in long-term gains.

In contemporary research, it is common to measure growth-enhancing financial development by the volume of credit as a ratio of the gross domestic product (GDP), an application of Schumpeter's theory of credit and development. Recently, researchers have been surprised to find a negative relation between this measure and economic growth. This paper has three aims. First, Schumpeter sharply distinguished between the volume of credit financing development and the (typically larger) volume of the 'secondary wave' of credit financing consumption, over-investment and speculation, which follows the 'primary wave' of credit financing innovations. Combined with circuit theory, this helps explain the growth and the effects of credit/GDP ratios in our time. Second, it is shown that an increase in the credit/GDP ratio is due to an increase in 'secondary wave' credit, not productive credit; and since credit is debt, growth in the credit/GDP ratio is negative, not positive for economic development. Third, five contemporary ways in which the use of credit for consumption, financial investment and speculation has been institutionalized are discussed. The message of this paper is that, as Schumpeter wrote, "distinction between debts according to purpose, however difficult to carry out, is always relevant to diagnosis and may be relevant to preventive policy".

Growth and development of company depend on the adequate selection of financial resources and optimization of financial structure. In other words, the success of a company is determined by the choice of high-quality financial sources and their maturity adjustment. In developed economic and developed financial systems, companies have a wide range of financial sources: emissions of shares, bonds, emissions of other long-term and short-term securities, borrowing from the bank and alternative sources of financing. However, the developing countries and undeveloped countries addressed to financial resources of investors and loans from banking institutions. In this context, it is necessary to build a stable banking system, which will support the strategic development of the company and provide daily liquidity of companies.

This is the authors’ accepted and refereed manuscript to the article We find evidence that conflicts of interest are pervasive in the asset management business owned by investment banks. Using data from 1990 to 2008, we compare the alphas of mutual funds, hedge funds, and institutional funds operated by investment banks and non-bank conglomerates. We find that, while no difference exists in performance by fund type, being owned by an investment bank reduces alphas by 46 basis points per year in our baseline model. Making lead loans increases alphas, but the dispersion of fees across portfolios decreases alphas. The economic loss is $4.9 billion per year.

The World Bank is the most important financier for international investment. The bank opens credits mostly for investment projects in developing countries. Turkey has received various investment credits since its membership to the World Bank on March 11, 1947. The credits were used for economic and social domains. Turkey has also been granted credits from the European Investment Bank (EIB). The credits received are composed of micro credits that belong to small and medium enterprises (SMEs). A regional development bank, Islamic Development Bank, has also received credits through Eximbank and Industrial Development Bank of Turkey (TSKB) to finance Turkish SMEs. This paper deals with Turkish investment strategies in the framework of basic principles of investment – development banks.

This chapter provides an overview of the development of commercial banking—defined as taking deposits payable on demand and originating loans to private and corporate customers—from the mid-nineteenth century to the present. Two characteristics are underlined: state regulation, primarily dictated by concerns about banks’ position as deposit takers; and banks’ role in the financing of industry and more generally in economic growth including their assigned responsibility. The changing nature of these two features has shaped the development of commercial banks since the onset of industrialization. In all countries, with the exception of England, commercial banks developed into some kind of universal bank in the course of the nineteenth century. This converging movement ended in the interwar years, when in many countries commercial banks were separated from investment banks. Universal banking became dominant again in the late twentieth century, but in the form of banking conglomerates.

There is a growing appreciation in economics that people have emotional vulnerabilities, commitments to social norms, and systematic irrationalities, which impact their decision making and choice in the marketplace. The flip side of this is that human beings are susceptible to being manipulated by unscrupulous agents who are single-minded about marketing their services and wares. This paper reviews George Akerlof and Robert Shiller's book, Phishing for Phools: The Economics of Manipulation and Deception, alongside other writings in the field, and discusses how this research agenda can be taken forward. The paper shows how this new research can shed light on the ubiquity of corruption in so many societies, and proposes ideas for controlling corruption.

This chapter provides an overview of the development of commercial banking—defined as taking deposits payable on demand and originating loans to private and corporate customers—from the mid-nineteenth century to the present. Two characteristics are underlined: state regulation, primarily dictated by concerns about banks’ position as deposit takers; and banks’ role in the financing of industry and more generally in economic growth including their assigned responsibility. The changing nature of these two features has shaped the development of commercial banks since the onset of industrialization. In all countries, with the exception of England, commercial banks developed into some kind of universal bank in the course of the nineteenth century. This converging movement ended in the interwar years, when in many countries commercial banks were separated from investment banks. Universal banking became dominant again in the late twentieth century, but in the form of banking conglomerates.

The purpose of this study is to assess to what extent the business model practiced by investment banks, before the beginning of the financial crisis, has influenced their performance indicators, and especially those who express shareholders' satisfaction. To this end, we have applied a nonparametric method, called Data Envelopment Analysis, which allows obtaining the efficiency scores for each financial institution considered. The sample included two pure investment banks, Lehman Brothers and Goldman Sachs, and seven international financial groups carrying out investment banking activities. The model tested assumed the maximization of selected output variables (ROE and the dividend distributed), by considering several input variables, meant to summarize the risk profile and costs arising from implementing a particular business model. The results obtained, in the form of high inefficiency scores, indicate that the business model of investment banks was not better performing than that applied by financial groups, because it failed to ensure a balance between ownership compensation and sustainable expansion of financial activity.

This paper reviews the pattern of bank failures during the financial crisis and asks whether there was a link with corporate governance. It revisits the theory of bank governance and suggests a multi-constituency approach that emphasizes the role of weak creditors. The empirical evidence suggests that, on average, banks with stronger risk officers, less independent boards, and executives with less variable remuneration incurred fewer losses. There is no evidence that institutional shareholders opposed aggressive risk-taking. The Financial Stability Board published Principles for Sound Compensation Practices in 2009, and the Basel Committee on Banking Supervision issued principles for enhancing corporate governance in 1999, 2006, and 2010. The reports have in common that shareholders retain residual control and executive pay continues to be aligned with shareholder interests. However, we argue that bank governance is different and requires more radical departures from traditional governance for non-financial firms. © The Authors 2012. Published by Oxford University Press., 0, SCOPUS: ar.j, info:eu-repo/semantics/published

This paper discusses some features of financial institutions and instruments which originated the financial crisis triggered by increasing default rate, household real estate and financial asset depreciation combined with U.S. subprime mortgages. The first part presents major crisis events in a chronological order. The second part describes the interconnection of the institutions and markets which engendered a global shadow financial system. The third part focuses on an overview of measures taken by government authorities and large banks to bring about possible solutions for the global financial crisis.

This paper builds on the findings of an earlier unpublished discussion paper titled ‘designing a model for networked carbon markets’, with its objective being to describe key elements of the mitigation value assessment process. The outcome of this paper will inform a model for the Networked Carbon Markets concept, to be prepared at a later date. The following section two acknowledges the subject matter of the NCM initiative, namely the diverse and heterogeneous trading schemes and other carbon pricing mechanisms that are being put in place by jurisdictions around the globe. As this is the subject of another World Bank paper, only a brief reference is included. Section three sets out a conceptual framework within which to consider the key elements described in the glossary of terms, addressed in section four and annexure ‘C’. This section also looks at different transaction scenarios, introducing the concepts of an international transaction unit and an index. Section five turns attention to the types of institutions that might be suitable to participate in the mitigation value assessment process, providing practical examples, and considering the types of expertise and tools those institutions might leverage. Section six considers options for regulatory supervision of the MV assessment process. Section seven looks in more detail at the relationship between mitigation value and the compliance value that might be attached to carbon assets and, in so doing, considers the role and function of the settlement platform. This section also considers the feasibility and potential benefits of an index. The concluding section eight looks at the next steps that might flow from this work.

This snapshot provides an overview of financial inclusion trends and challenges in Tunisia. It follows the recent expiration of the Coordinated Vision for the Development of Microfinance in Tunisia 2011-2014, national strategy published in 2011.

How many and which firms issue equity and bonds in domestic and international markets, how do these firms grow relative to non-issuing firms, and how does firm performance vary along the firm size distribution? To evaluate these questions, a new data set is constructed by matching data on firm-level capital raising activity with balance sheet data for 45,527 listed firms in 51 countries. Three main patterns emerge from the analysis. (1) Only a few large firms issue equity or bonds, and among them a small subset has raised a large proportion of the funds raised during the 1990s and 2000s. (2) Issuers grow faster than non-issuers in assets, sales, and employment, that is, firms do not simply use securities markets to adjust their financial accounts. (3) The firm size distribution of issuers evolves differently from that of non-issuers, tightening among issuers and widening among non-issuers.

This technical note provides a snapshot of financial inclusion trends and challenges in Tunisia. It follows the recent expiration of the Coordinated Vision for the Development of Microfinance in Tunisia 2011-2014, national strategy published in 2011. This document does not examine all aspects of financial sector development, but rather concentrates specifically on financial inclusion for low-income households and micro-enterprises.

The Report on the Observance of Standards and Codes, Accounting and Auditing (ROSC AA) in Sri Lanka aims to assess the progress made on implementation of the policy recommendations of the first ROSC AA in 2004 and supports the Government of Sri Lanka in preparing a country action plan. This will further enhance the quality of corporate financial reporting, and thereby contribute toward the country’s goal of improving the investment climate, attracting foreign direct investment (FDI), and fostering business development. The ROSC review, requested by the Minister of Finance and Planning, entailed an evaluation exercise that assesses the strengths and weaknesses of existing institutional frameworks that underpin financial accounting and auditing practices; determines the comparability of national accounting and auditing standards; and evaluates the effectiveness of enforcement mechanisms for ensuring compliance with existing national standards, rules, and regulations. The review was conducted from December 2013 to September 2014 using the World Bank’s multi-layered review methodology. All findings reflect this time period of the review; some stated future events may have been achieved by publication date. The data and information used for the review was gathered from a diagnostic questionnaire completed by stakeholders; by reviewing accountancy profession-related documents; and through interviews with many stakeholders from government, regulatory and accountancy bodies, accounting and auditing firms, banks, insurance companies, state-owned enterprises (SOEs), small and medium-size enterprises (SMEs), and academia. The review focused on assessing the institutional framework underpinning accounting and auditing practices in the private sector and in SOEs of the country in comparison with international standards and good practice.

The Sustainable Development Goals, the global development agenda for 2015 through 2030, will require unprecedented mobilization of resources to support their implementation. Their predecessor, the Millennium Development Goals, focused on a limited number of concrete, global human development targets that can be monitored by statistically robust indicators. The Millennium Development Goals set the stage for global support of ambitious development goals behind which the world must rally. The Sustainable Development Goals bring forward the unfinished business of the Millennium Development Goals and go even further. Because of the transformative and sustainable nature of the new development agenda, all possible resources must be mobilized if the world is to succeed in meeting its targets. Thus, the potential for Islamic finance to play a role in supporting the Sustainable Development Goals is explored in this paper. Given the principles of Islamic finance that support socially inclusive and development promoting activities, the Islamic financial sector has the potential to contribute to the achievement of the Sustainable Development Goals. The paper examines the role of Islamic financial institutions, capital markets, and the social sector in promoting strong growth, enhanced financial inclusion, and intermediation, reducing risks and vulnerability of the poor and more broadly contributing to financial stability and development.

This paper is organized as follows: this introduction is followed by a primer on the industry and on the evolution of the microfinance sector. The authors then examine the structure of the microfinance industry, (a) NGOs, cooperatives and credit unions, and commercialized vehicles; how they differ and why corporate governance differs according to the nature of the MFI; and (b) large networks, investment and bank-holding groups, and social services/faith-based groups. The authors then consider how corporate governance evolves and develops in MFIs as their structure and ownership changes. This is followed by an examination of the recurring issues and growing risks in the microfinance industry. The authors conclude with a look at the responses of governments, investors, and the industry itself to these issues and risks and propose some next steps.

In this paper we pointed out the general elements relating to investment banks: the definition of these institutions, their customers, the structure and their functions. The purpose of this article is to explore the role of investment banks in the development of the financial crisis. We focus on the activiti es during the crisis. Those activities contributed to the economic collapse that came full -blown the following year. Finally we made a short presentation of the investment bank Morgan Stanley, the bank that was considered "the best investment bank" at the end of the crisis period (2011).

The paper finds a moderate evolution in public debt ratios since debt relief among heavily indebted poor countries (HIPC) and multilateral debt relief initiative (MDRI) recipient countries in Sub-Saharan Africa, with certain exceptions. For eight countries the authors find rapid rates of debt accumulation, which can return them to pre-HIPC debt levels in only a few years. Short-term domestic debt has, despite early fears, in general not filled the borrowing space created by debt relief. However, external debt accumulation on commercial terms in some cases presages repayment spikes, which may combine with short-term domestic obligations to amplify refinancing risk and cause abrupt reductions in public spending, with damaging consequences for development. Finally, despite reduced debt, African economies continue to be commodity dependent and prone to shocks. As global interest rates and commodity prices revert to historically more customary levels, these countries should remain prudent: avoid tax-base erosion, prevent large recurrent spending hikes, and invest wisely in growth, by executing projects effectively to enhance infrastructure. These fiscal fundamentals will be as important for debt sustainability as how much is borrowed and on which terms.

The explosive growth of green bonds in the capital markets is increasingly attracting attention from investors. This surge in interest has created a demand for accessible information on the green bond market. This primer was created in response to this demand and covers the principles of this relatively new financial instrument. The following intends to serve as a guide for those interested in better understanding the nature of green bonds. The content will aim to distinguish green bonds from other traditional financial instruments. It will also provide insight into the potential of green bonds to mobilize new sources of climate finance. This paper includes the following highlights: understanding bonds (chapter one); understanding green bonds (chapter two); and benefits and potential.

Инвестиционные банки в современной экономике многих стран, в том числе и в России занимают весьма серьезную нишу. Динамично развивающийся фондовый рынок весьма привлекателен для инвестиций за счет средств самих банков или их клиентов. Однако текущая кризисная ситуация в корне меняет приоритеты в инвестиционной политике банков с учетом возрастающих рисков и изменчивой структуры ресурсов. Investment banks in modern economies of many countries, including in Russia occupy a very important place. Dynamic stock market very attractive for investment at the expense of the banks themselves or their clients. However, the current crisis situation fundamentally changes the priorities of the investment policy of banks given the increasing risks and changing patterns of resources.

Investment managers can help improve the financial system in their own image

Investment banking is an important constituent of the financial market. As financial institutions, banks have an irreplaceable part in the functioning of the world's economies. Together with fiscal documents and financial markets they constitute the fundaments of the financial system. The financial market is a complicated system of interconnected relations of particular segments of the market, and investment banking is one such part. Its existence makes it possible to shift the savings of financial resources from saving subjects to ones in deficit by means of mediatory activities, which is performed with the help of various kinds of financial instruments, which are called investment instruments. The mediatory function of investment banking is a basic feature which makes a distinction between investment and commercial banking. Investment banks are main mediators that place released resources (savings) into the stock market. As is well known from the inherent laws of economy, the role of investments is crucial for a healthy circulation and functioning of the state economy. Without them the steady economic growth would be impossible. Due to these reasons I decided to analyse investment banking: its development and economic context, as well as the legal basis of these institutions and their activities...

Onderzoekers worden steeds vaker ingeschakeld door het onderwijs als het om duurzaam ondernemerschap gaat. Het zijn vaak losse projecten, en soms veel van hetzelfde. Onderzoekers die ingeschakeld worden willen meer afstemming en meer uitwisseling, maar het moet nog wel van de grond komen

The rules of the Eurozone cause the euro to function as the gold standard. The US economy performs better in some respects, partly because of the advantages of fiat money. The treaty on the EMU has to be adapted in order not to become dependent upon current ad hoc measures, with the loss of welfare over the years 2008-2013+. If Eurozone nations create their own national Economic Supreme Courts, then an optimal currency area can still come about without transfer to Brussels of national sovereignty on the budget. When consumers and agents can have deposits at a local branch of the European Central Bank, a system of deposit insurance has been established by itself. Advisable is a split-up between (1) the primary payment system with retail banks that are franchises of the ECB, (2) the secundary savings and loans banks, and (3) the tertiary investment banks. The shadow banking system must be redressed, with every financial transaction having an identified regulation. Conforming to an earlier proposal the ECB can create funds to redress debt. Notably, 400 billion euro can be created and invested in bank capital, and be directly neutralised by the capital requirement of 10.5%. Another 400 billion can be used to clean up the debt of Greece and Italy. Their participation in the Eurozone was a political decision and thus the Eurozone must bear the consequences. To satisfy the no-bailout-condition, Greece and Italy could create economic zones comparable to the lease of Hong Kong, where companies could invest and operate under international law for the next 40 years.

The Malaysian economy grew robustly in 2011, outperforming forecasts. Growth was driven by domestic demand. Public consumption picked up more than expected toward the end of the year and fixed investment was also buoyant on higher investments by public and private companies. Private consumption spending remained strong, sustained by solid consumer credit, civil service bonus payments, and firm commodity prices benefiting smallholders. Inventories were a drag on growth as post- financial crisis restocking was completed. There is momentum to the reform agenda, but implementation could be accelerated. The government's transformation programs registered notable progress, but the challenge now is to go beyond quick wins and accelerate the implementation of more difficult, but critical, structural reforms that lie at the core of transforming the economy into a high-income one. Implementation can be assisted by increasing the coordination of related reform efforts (such as safety nets and education), building capacity within the civil service to lead reforms, and working towards consensus in key areas such as educational reform, subsidy rationalization and broadening the tax base.

The paper is based on a scenario workshop held on January 20, 2009, where leading financial and private sector development experts from IFC, the International Monetary Fund, and the World Bank discussed the unfolding crisis. This paper is a product of the staff of the Financial and Private Sector Development Vice Presidency of the World Bank Group. The scenarios described in this paper do not necessarily reflect the views of the World Bank Group, its Executive Directors, or the governments they represent. The scenarios described serve as the basis of a planning exercise and are not to be interpreted as forecasts or projections on the part of the World Bank Group or the authors of this paper. The purpose of this paper is to sketch scenarios taking into account the information currently at hand. In this way, scenarios can provide decision makers with alternative views of the future. Decision makers can test their strategies against the different ways in which the future might play out. Scenarios provide a framework for debate, leading to better policy making and strategies. They are especially useful in situations where major global changes are under way but there is huge uncertainty over what may happen. Staffs of the World Bank Group are providing these scenarios to help governments and organizations prepare for an uncertain future. Being well prepared and open to thinking about different outcomes is much better than continually being behind the curve and having to chase events.