Search results

Globally influential Islamic banks from the Middle East and Southeast Asia carry voluminous correspondence banking with banks from China and India, leading to potential spillover effect of contagion among the banks from these regions. This study aims to investigate the Islamic banks systemic risk contagion with major banks from China and India.

Having the option pricing theory in the backdrop, the authors calculated three different distance to risk measurements (default, insolvency and capital). The authors have included top six listed globally influential Islamic banks, top seven Indian banks and top eight Chinese banks based on their net asset value. They then measured the banks’ extreme shocks based on the extreme value theory by using the logistic regression model. These extreme shocks helped the authors to map the spillover among the selected banks from multiple regions.

The authors have found strong evidences of directional risk spillover among the banks in this sample. Islamic banks are receiving a significant risk spillover from the other sample banks but transmitting less toward the other banks from India and China. Hence, there is strong one-directional risk contagion toward the Islamic banks in the study sample.

This research would be particularly useful to the regulators and bankers from emerging and Islamic markets to understand the conniving nature of the crisis by effectively mapping the source, destination and implementation of the shock transmission mechanism of the potential financial contagion.

Even though the corresponding banking among the top Islamic banks from the Middle East and Southeast Asian countries, and banks from India and China, is on the rise, the assessment of risk among these banks has been limited. In particular, the authors extended on the extreme value theory to focus on the wider impact of spillover, including significant direction of contagion from non-Islamic banks to Islamic banks.

This study aims to examine the systemic risk contagion in banks from 15 US states using extreme shocks in their distance to risk.

The authors contemplate a model that inputs co-exceedances in the base US states’ banking sector as the dependent variable and the co-exceedances in other states’ banking sector (along with other underlying variables of a banking system) as the explanatory variables.

The authors find smaller states transmit and receive more systemic shocks than their larger counterparts and larger states exhibit a better shock-resisting capacity than their smaller counterparts. The authors also find that bigger shocks are more contagious than the smaller shocks.

This will be the first paper that will investigate the inner linkage of US states’ banking network using three different distance to risk methods, thus providing timely guidance for regulators.

The purpose of this paper is to examine the likelihood that the presence of the deposit insurance policy encourages risk appetite behavior of banks in Sub-Saharan African (SSA). It argues that financial system stability is not a function of the choice of a deposit insurance scheme, but countries' peculiarities such as quality of institutions and the macroeconomic environment.

The study used the stereotype logit regression model and covers 47 SSA countries. Countries are categorized into two: explicit and implicit DIP scheme.

The study found that corrupt countries are more likely to adopt the implicit policy, while the explicit policy exposes them to credit risk, insolvency, and negative macroeconomic shocks, a reflection of weak institutions and unhealthy competition.

Paucity of substantial local literature on institutional perspective of deposit insurance (DI) constitutes the major limitation of this study.

The sub-region, therefore, faces a conundrum - desiring a deposit insurance scheme, but lacking the required institutions to maintain either a publicly owned regulatory system or the ability to transplant the private club model.

This study contributes to the institutional perspective of DI from SSA institutional perspective.

The purpose of this paper is to empirically test if the interaction between universities and spin-offs, as proxy of knowledge translation (KT), which is based in particular on negotiation, semantics and pragmatics, has a positive impact on spin-off performance – in terms of greater distance from the “valley of death” – and allows access to credit and financial instruments.

The authors adopt an appropriate nonparametric conditional efficiency approach for panel data. The authors provide a unique picture of the innovation environment in Italy using an original dataset. These data provide information regarding the intensity of interaction between universities and spin-offs along with financial balance datasheet of the spin-offs. The nonparametric approach is particularly suitable for nonlinear relationships typical for this type of data.

The results of the analysis confirm that the translation of knowledge, based on negotiation of interests, semantics of the text and pragmatism, favored by the interaction between universities and spin-offs, improves the productivity performance of the spin-off by allowing them to move away from the “valley of death”. Therefore, universities must pay particular attention to the way they work with spin-offs by making use of the translation of knowledge, based on semantics and pragmatism, in order to encourage an understanding of knowledge, sharing of interests among the partners and stakeholders of the spin-off, often belonging to different backgrounds. These are processes that favor the transfer and development of research outcomes to the market, improving the spin-off competitiveness of the territory and strengthening relations with universities and their stakeholders (banks and financial intermediaries, local and national politicians, institutions and the community at large).

Implications for research can be identified at policy and managerial level and refer to the effectiveness of the so called “Third Mission”, university entrepreneurship through the creation of profitable spin-offs which contribute to innovation, and to the socioeconomic development of the territory. In turn, spin-offs with good performances are more likely to have access to external financing to allow the growth of their business in the market. Further studies can investigate the organizational way of the universities that promote these virtuous results, distinguishing them by spin-off efficiency clusters.

For universities, the results make it possible to envisage organizational processes to support spin-offs that are important both for compliance with the regulations and for the Third Mission. Researchers, teachers and PhD academics have the opportunity to exploit the results of their innovative research on the market. Spin-offs and start-up founders should note that the results of scientific transfer can create value for the firm and the territory. Useful information also derives for banks and financial intermediaries that intend to improve the credit risk assessment of the spin-offs during the loan assessment phase.

The value of the work entails in offering a unique overview of university innovation, through an original dataset and a robust methodology. By adopting a different approach, the contribution of KT at national level was assessed, measuring the impact on the technical performance and on the probability of survival of the companies. Originality of the paper lies not only in the approach but also in the fact that this is the first attempt to use the KT as a key factor for the economic sustainability from a financial perspective of start-up companies.

This paper aims to introduce a new framework that helps to get an overview of contextual factors that influence the ability of small- and medium-sized enterprises (SMEs) to survive the economic crisis in a business cluster, as parts of a system.

The spatial autologistic model and the logit regression tree (RT) were applied to SME manufacturing companies localized in the business clusters of the Italian Marche region to explain interconnection among the actors of the network and their heterogeneous behavior with the environment.

The main findings of the application confirm that contextual influences are decisive in the definition of firm’s survival, explained through the presence of spatial dependence in bankruptcy analysis, validating the transmission effects of corporate bankruptcy within the business clusters in the Marche region.

The estimation of the logistic RT allowed to identify sub-systems, homogeneous with respect to crucial context variables, with different firms’ behaviors in terms of probability to survive in the system and relation to their environment. Therefore, a systemic approach is required to provide a better understanding of such kind of phenomena.

The purpose of this paper is to present and discuss a model to evaluate the top management quality and its impact on the default probability/survival probability of companies operating in the Italian food and beverage industry. The focus is on SMEs and private companies (ie. companies with no external or public rating). The general aim of this paper is to initiate a new field of research enjoying the fast and growing number of information underlying the development of the private lending market (both banking channel and private debt channel) and the recent developments in assessing the managerial styles of leadership.

The methodology used in the research is a mixed method based on quantitative and qualitative analysis. The authors have followed the sequential mixed methods design (Creswell and Plano Clark, 2007; Almalki, 2016) belonging to a practice perspective (Tashakkori and Creswell, 2007). The two components (quantitative and qualitative) are integrated in the combined approach: a final proposed evaluation model is explained and discussed.

According to the experience (and private market best practice) the leadership style has a material impact on the survival probability of a company (and, on the contrary, on the default probability of a company). In other words, the leadership style – other variables be equal – can provide significant information to investors about the future evolution of the financial performance and related credit risk. In the paper, the authors provide a useful model (and tool) in order to capture the above mentioned relationship to support investment decisions in food and beverage industry.

While a positive relationship between a participative style of leadership and the financial performance is widely accepted in the literature; there is no published research on the relationship between managerial styles of leadership and default probability/survival probability. There are several workstreams to be performed in future research in order (1) to provide more business evidence and (2) to extent the analysis to further industries (other than food and beverage). The first step is to collect more data and company information on managerial styles of leadership and to start to track, to measure and monitor the evolution of the credit risk over time in each of the four clusters identified in the combined model.

The practical implication is to provide a methodological contribution to develop an evaluation model of top management quality to be used for the certification of the quality system. The proposed evaluation model is intended to support both (1) the ISO quality management system certifiers and (2) financial analysts and auditors in order to assess the going concern and the business sustainability and (3) the credit risk assessment and evolution in investment decisions.

The authors believe that a more deep understanding on the effectiveness of managerial styles of leadership on credit risk can improve the credit and investment allocation and to enhance the borrowing capabilities of the food and beverage industry (with relevant implications on number of employees and size of new investments).

This is the first applied research on the link between the default probability/company survival probability and the quality of management in the Italian food and beverage industry.

Based on a matched sample of 34 Islamic banks and 89 conventional ones, the purpose of this paper is to analyze and compare the risk-capital-efficiency interconnection.

Based on the triple square model (3SLS), two major risk measures have been accounted for, namely, the ratio of non-performing loans to total loans (credit risk) and the z-score indicator (risk insolvency). In addition, certain bank-specific factors as well as macroeconomic ones have also been considered in the model.

The reached results appear to reveal that the best capitalized Western banks turn out to be more engaged in an excessive risk-taking behavior, resulting in increased toxic-loan ratios and, simultaneously, a rather shaken stability. Concerning Islamic banks, cost efficiency has proven to have a negative and significant effect on NPLs. However, the capital, technical efficiency, competitiveness and macroeconomic factors turn out to have a significant and positive effect on Islamic banks’ insolvency risk, thus helping promote these banks’ stability.

In addition to the enrichment of literature regarding dual-banking systems, the authors hope the present work would provide a modest contribution to the regulators belonging to the MENA region and Asia with useful results. In particular, the authors recommend developing some management and monitoring tools whereby the risk-taking behavior of highly capitalized conventional banks could be moderated. As a matter of fact, special attention should be paid to the agency problems prevalent within Islamic financial institutions, particularly the best capitalized ones.

Since their creation through the Industrial Training Act 1964 to hear appeals against levies, the jurisdiction of industrial tribunals has grown considerably. One aspect of this jurisdiction, unfair dismissal, is examined here. Basic principles related to the law of unfair dismissal are examined. The practice and procedure of an industrial tribunal solely in connection with unfair dismissal cases are examined in greater detail. A case study is used to illustrate the important aspects of procedure. Appendices give relevant forms and extracts from the appropriate Code of Practice.