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Abstract

Details

A Circular Argument
Type: Book
ISBN: 978-1-80071-385-7

Book part
Publication date: 26 April 2014

Małgorzata Pawłowska, Krzysztof Gajewski and Wojciech Rogowski

The aim of this study is to understand the determinants of relationship between banks and nonfinancial corporations within Poland (which are considered relationship banking from…

Abstract

Purpose

The aim of this study is to understand the determinants of relationship between banks and nonfinancial corporations within Poland (which are considered relationship banking from this point onward).

Design/methodology/approach

The main sources of data used in the study are the large credit database (credit register of the National Bank of Poland (NBP)) and other aggregated data, including data from the Warsaw Stock Exchange and the NBP. Econometric panel logit methods have been used to test how different factors affect bank–firm relationships. Three main groups of factors have been investigated: the characteristics of the firm (i.e., size, ownership type, and R&D activity); the characteristics of the financial sector (i.e., competition in the banking sector); and macroeconomic conditions.

Findings

The findings demonstrate that Polish firms readily establish single-bank relationships, and firms with the highest quality of credit portfolios borrow often from multiple creditors. All conducted estimations demonstrated that the relationship between financing from a single bank and from foreign capital had a positive sign. Also, a decrease in concentration in the banking sector, which may be identified with an increase in competition, supports the establishment of relationship banking.

Research limitations/implications

The study was performed using the data from large exposure database collected for supervisory purposes. Exposures (credits, derivatives, etc.) larger than 500 thousand PLN (approx. 120 thousand EUR) were only considered. Future research on bank–firm relationships should focus on the influence of financing costs, maintaining relationships when the borrower is in a difficult financial position, and other unique features of banks using the strategy of relationship financing.

Practical implications

The understanding of the characteristics of bank–firm relationships can help to improve banking practice and supervisory policy in Poland.

Originality/value

This study makes a noticeable contribution to the understanding of the banking sector and its relationships with nonfinancial corporations in Poland. It is the first empirical study on such a large sample of panel data from Polish banking sector and industries, too.

Details

Macroeconomic Analysis and International Finance
Type: Book
ISBN: 978-1-78350-756-6

Keywords

Book part
Publication date: 12 November 2016

W. Travis Selmier

Much of the criticism directed toward banking in China revolves around self-dealing in relationships between bankers and their clients. Corruption, nepotism, high levels of…

Abstract

Purpose

Much of the criticism directed toward banking in China revolves around self-dealing in relationships between bankers and their clients. Corruption, nepotism, high levels of non-performing loans, and the inefficiency of government-directed lending have all been laid at the door of embedded guanxi networks. While valid to an extent, this criticism ignores two important, related points: guanxi networks bring disciplining mechanisms as well as the potential for corruption, and those mechanisms may improve banking governance.

Methodology/approach

Employing theory from relationship banking, information economics, and the business ethics of guanxi, I examine how monitoring by netizens will lead to greater disclosure.

Findings

Relationship banking in a Chinese context – with the influence of guanxi in banking – further increases reputational costs when self-dealing is uncovered. Costs of bad banking behavior are increasing just as benefits from staying rich increase. Increased disclosure affects chances of staying rich as disclosure increases the chance that a corrupt relationship will lead to loss of wealth and reputation.

Research limitations/implications

This paper presents a theoretical construct informed by selected examples. An empirical analysis of netizen monitoring leading to improved banking governance would provide additional support for the theoretical construct.

Practical implications

Bankers, financiers, and government officials must be aware of monitoring by netizens, which forces more ethical financial contracting.

Social implications

Rather than weakening financial system governance, guanxi may begin to strengthen the disciplinary measures inherent in relationship banking as information disclosure increases and private sector monitoring grows.

Originality/value

This paper provides an extension to private monitoring theory in financial contracting which may be applied to netizen monitoring in other regions and countries.

Details

The Political Economy of Chinese Finance
Type: Book
ISBN: 978-1-78560-957-2

Keywords

Book part
Publication date: 9 February 2023

Cheryl Green

Abstract

Details

Social Justice Case Studies
Type: Book
ISBN: 978-1-80455-747-1

Book part
Publication date: 12 December 2003

R.Carter Hill, Lee C. Adkins and Keith A. Bender

The Heckman two-step estimator (Heckit) for the selectivity model is widely applied in Economics and other social sciences. In this model a non-zero outcome variable is observed…

Abstract

The Heckman two-step estimator (Heckit) for the selectivity model is widely applied in Economics and other social sciences. In this model a non-zero outcome variable is observed only if a latent variable is positive. The asymptotic covariance matrix for a two-step estimation procedure must account for the estimation error introduced in the first stage. We examine the finite sample size of tests based on alternative covariance matrix estimators. We do so by using Monte Carlo experiments to evaluate bootstrap generated critical values and critical values based on asymptotic theory.

Details

Maximum Likelihood Estimation of Misspecified Models: Twenty Years Later
Type: Book
ISBN: 978-1-84950-253-5

Open Access
Book part
Publication date: 14 December 2023

Ilse Matser, Rachel Heeringa and Jan Willem van der Vloot van Vliet

Family governance is a topic of substantial practical relevance that merits much more attention in family business research (Gersick & Feliu, 2014; Suess, 2014). The purpose of…

Abstract

Family governance is a topic of substantial practical relevance that merits much more attention in family business research (Gersick & Feliu, 2014; Suess, 2014). The purpose of this book chapter is to use the framework of a fair process to gain a better understanding of how family governance practices can help an entrepreneurial family firm flourish. Central to the analysis is the case of a 100-year-old entrepreneurial family firm that will serve as a best practice. Interviews with key members of the family and the business were held, and secondary data were gathered and analyzed. The chapter starts with a theoretical outline of the family as strategic resource and the family governance as a mechanism to manage this strategic resource. The principles of fair process are introduced as an underlying framework for the well-functioning of family governance practices. This is followed by the introduction of the case and the discussion of the key findings. This chapter ends with some concluding remarks.

Book part
Publication date: 19 September 2006

David Norman Smith

Officially, of course, the world is now post-imperial. The Q’ing and Ottoman empires fell on the eve of World War I, and the last Leviathans of Europe's imperial past, the…

Abstract

Officially, of course, the world is now post-imperial. The Q’ing and Ottoman empires fell on the eve of World War I, and the last Leviathans of Europe's imperial past, the Austro-Hungarian and Tsarist empires, lumbered into the grave soon after. Tocsins of liberation were sounded on all sides, in the name of democracy (Wilson) and socialism (Lenin). Later attempts to remake and proclaim empires – above all, Hitler's annunciation of a “Third Reich” – now seem surreal, aberrant, and dystopian. The Soviet Union, the heir to the Tsarist empire, found it prudent to call itself a “federation of socialist republics.” Mao's China followed suit. Now, only a truly perverse, contrarian regime would fail to deploy the rhetoric of democracy.

Details

Globalization between the Cold War and Neo-Imperialism
Type: Book
ISBN: 978-1-84950-415-7

Abstract

Details

Globalization, Political Economy, Business and Society in Pandemic Times
Type: Book
ISBN: 978-1-80071-792-3

Book part
Publication date: 18 January 2022

Andreas Pick and Matthijs Carpay

This chapter investigates the performance of different dimension reduction approaches for large vector autoregressions in multi-step ahead forecasts. The authors consider factor…

Abstract

This chapter investigates the performance of different dimension reduction approaches for large vector autoregressions in multi-step ahead forecasts. The authors consider factor augmented VAR models using principal components and partial least squares, random subset regression, random projection, random compression, and estimation via LASSO and Bayesian VAR. The authors compare the accuracy of iterated and direct multi-step point and density forecasts. The comparison is based on macroeconomic and financial variables from the FRED-MD data base. Our findings suggest that random subspace methods and LASSO estimation deliver the most precise forecasts.

Details

Essays in Honor of M. Hashem Pesaran: Prediction and Macro Modeling
Type: Book
ISBN: 978-1-80262-062-7

Keywords

Book part
Publication date: 21 December 2010

Joyce Hsiu-yen Yeh

Purpose – This study examines the meaning of shopping for Taiwanese students visiting England. It asks how this activity takes place, what purposes it serves for the students, and…

Abstract

Purpose – This study examines the meaning of shopping for Taiwanese students visiting England. It asks how this activity takes place, what purposes it serves for the students, and how the resulting purchases make meaning for the students once they return to Taiwan.

Methodology/approach – The study is ethnographic, involving observation and interviews in England as well as visual elicitation and interviews with the students once they returned to Taiwan and also some time later.

Findings – Shopping for souvenirs in England is found to be part of the process by which young Taiwanese tourists come to understand cultural differences. It is also a part of the process by which these students fulfill social obligations to those family members who have largely funded their trips. It is also a way of engaging with locals through the medium and excuse of shopping. Both the items selected and the memories they encode form thesomewhat stereotypical condensations of the experience of going abroad to “The West.”

Research limitations/implications (if applicable) – Those studied represent a young group with limited prior travel experience. Their retrospective recollections are subject to some distortion, although this is a part of the normal process of remembering.

Practical implications (if applicable) – For those planning foreign educational exchange programs, the critical role of shopping in this process should not be neglected.

Originality/value of paper – The researcher accompanied the students on their trip to England and also followed up with them once they returned home to Taiwan. This produced a rare insight into the process of tourist meaning-making during and after their trip abroad.

Details

Research in Consumer Behavior
Type: Book
ISBN: 978-0-85724-444-4

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