Search results

This public-sourced case was named the best finance case of 2013 in the 24th annual awards and competition sponsored by The Case Centre. It was designed for and works well in the latter portion of a GEMBA Financial Management and Policies course and in the early stage of a second-year MBA elective Financial Institutions and Markets course. The case is set in mid-2012 as the new co-CEOs of Deutsche Bank are about to speak in an analyst call. Students are the decision makers and have the opportunity to evaluate the various factors affecting a bank's situation in a changing global industry, such as leverage and credit quality, as well as to discuss the implications on Deutsche Bank and the banking sector more broadly of Basel III, the global regulatory reform. The students also have the opportunity to conduct a valuation of the bank. Investors were anxious to know whether the new co-CEOs would discuss the strategy of how Deutsche Bank planned to meet the new regulatory requirements, what effect Basel III would have on the company's profitability, and what lines of business it would focus on going forward in a new banking environment. They also wanted to know more about the benefits of the 2010 majority stake investment in Postbank, a German commercial bank. In class, this discussion also allows for a broader examination of the universal bank model and the role of banks within society.

This public-sourced case describes the latest restructuring efforts by Deutsche Bank (DB) and gives a short history of prior restructuring efforts from the decade before. In July 2019, Christian Sewing, the new CEO of DB, announced a series of measures that included, among others, the elimination of global equity trading, the layoff of 18,000 employees, the creation of a “bad bank” to transfer noncore assets, and the suspension of dividends until 2022. The case describes key decisions a bank CEO makes when a bank needs to change course to return to profitability and growth. The case offers an opportunity to debate these key decisions, as well as discuss some of the prior ones during earlier restructuring efforts, and put the students in the CEO's shoes: What would you do and why? The case also describes key banking performance metrics (e.g., ROE, ROA) and other critical variables such as those reflecting capital health (Tier 1 ratio), as well as gives an overview of the bank business model and factors impacting bank profitability and value.

The purpose of this paper is to explore the importance of owner/manager characteristics in explaining the capital structure decisions of entrepreneurial enterprises in emerging economies using a sample of Chinese small and medium‐sized enterprises (SMEs). Although mainstream theories from the finance literature are useful in explaining capital structure decisions for large firms in developed economies, they do not adequately explain the financing behaviour of SMEs in developing economies.

The authors' mixed methods approach utilized both quantitative and qualitative methods to understand how managerial factors influence the capital structure of Chinese SMEs.

The findings suggest that the capital structure of SMEs in China is primarily influenced by aversion to external control and propensity to take risk. It was also found that owners with better networking ties generally require less debt financing because they can access adequate external resources through informal channels.

The main limitation concerns the extent to which the paper's findings can be generalised to outside of the specific location in which the research was undertaken. Future research might be extended to other emerging economies to determine whether the findings of this research are unique to China or robust across emerging economies, given different institutional contexts.

Given the critical importance of fostering growth of private enterprise in China, policy makers should be aware of how the attitudes of owner/managers impact on the development of SMEs when developing mechanisms to support them.

Citizens in economies which provide sufficient financing and support to entrepreneurial enterprises generally enjoy a higher standard of living than societies which do not.

This paper fulfils an identified need for studying how entrepreneurial firms in emerging economies make the financing decisions necessary to expand and grow.

In an ongoing War for Talent, what are the intangible and tangible return on investments (ROIs) for boundary-spanning employees? This study aims to develop a formative structural equation model (SEM) of the Matthew effect in talent. management.

This study develops a formative SEM theoretical model. Training and development (T&D) are the two antecedents of the latent construct – talent management strategy (TMS). This study frames the latent construct (TMS) in the proximal context of reducing burnout (cynicism and inefficacy), the distal context of subjective and intangible outcomes (job and life satisfaction) and the omnibus context of objective, tangible and financial rewards (the sales commission). The study collected data from multiple sources – objective sales commission from personnel records and subjective survey data from 512 sales employees.

The empirical discoveries support the theory. Both T&D contribute significantly to the TMS, which reduces burnout in the immediate context. TMS enhances job satisfaction more than life satisfaction in the distal context. TMS significantly and indirectly improves boundary spanners’ sales commission in the omnibus context via life satisfaction, but not job satisfaction. The model prevails for the whole sample, men, but not women.

Our discoveries offer practical implications for the Matthew effect in talent management: policymakers must cultivate T&D, develop TMS, facilitate the spillover effect from job satisfaction to life satisfaction, concentrate on the meaning in their lives and take their mind off money. TMS ultimately helps ignite these boundary spanners’ sales commission and their organization’s bottom line and financial health. The rich get richer.

It is life satisfaction (not job satisfaction) that excites boundary-spanning employees’ high level of sales commission. Our model prevails for the whole sample and men, but not for women. Job satisfaction spills over to life satisfaction for the entire sample, for men, but not for women. The results reveal gender differences.

This chapter examines the role of stress and emotional well-being as critical antecedents of important outcomes in the military context. In it, we provide a framework for understanding the sources of stress among military personnel. Using this model, we review the risk factors associated with combat and deployment cycles in addition to protective factors, such as personality characteristics and social support, which mitigate the effects of stress on emotional well-being and performance. Finally, we evaluate efforts by military organizations to enhance the emotional well-being of service members through training programs designed to build resiliency.

Researchers have undertaken many approaches to conceptualizing and assessing EI. Some approaches combine self-reported EI with broader personality constructs. Other approaches are based on so-called ability measures of EI, whether as tendencies people can self-report (Tett, Fox, & Wang, 2005) or as assessments developed to measure specific components of EI (e.g., Nowicki & Duke, 1994). We briefly survey the literature to arrive at a working understanding of what EI is currently thought to be (for more extensive reviews, see Mayer, Roberts, & Barsade, 2008; Zeidner, Matthews, Roberts, 2009).

This chapter explores the unique role of leadership in organizational innovation. Drawing from the investment theory of creativity (Sternberg & Lubart, 1995), we show that organizational innovation begins with a leadership decision. Based on a review of the creativity, organizational, and leadership literatures, the key components of organizational innovation are examined from individual, group, and organization-wide perspectives. Leading innovation is conceptualized as a special case of leading organizational change, which requires creative leadership skills applied to social systems. Establishing an organizational environment that supports innovation in the current market environment increases systemic paradoxes that must be managed by leaders. We conclude that leading innovation increases the creative demand on the leadership system, which requires leaders who have a developed understanding of the process of innovation and its environmental requirements.

There has been a great deal of interest recently, notably in the USA, in the concept of virtual reference services. Of particular interest is the use of software that allows a “chat” session between librarian and patron. While many libraries in Australia and New Zealand already offer online reference services via e‐mail or a Web form, as yet very few have ventured into the world of online reference services in real‐time. During the summer of 2001‐2002 a pilot group at the University of Canterbury was formed to investigate whether our library should offer such a service in 2002. This paper will briefly describe the service which went live in April 2002, including our reasons for offering it, the process of implementation and preliminary results. It will then outline and discuss in detail some of the issues that have arisen out of the service with comments and recommendations from our experience.