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1 – 10 of 946Johan Sandberg, Jonny Holmström, Nannette Napier and Per Levén
Although the potential of innovation networks that involve both university and industry actors is great variances in cultures, goals and knowledge poses significant challenges. To…
Abstract
Purpose
Although the potential of innovation networks that involve both university and industry actors is great variances in cultures, goals and knowledge poses significant challenges. To better understand management of such innovation networks, the authors investigate different strategies for balancing diversity. The paper aims to discuss these issues.
Design/methodology/approach
In this multiple case study, the authors draw on network and trading zone theory to examine the strategies of four research centers that govern university-industry innovation networks.
Findings
The authors provide empirically grounded descriptions of strategies for balancing diversity in innovation processes, extend previous theorizations by suggesting two types of trading zones (transformative and performative), and identify four strategy configuration dimensions (means of knowledge trade, tie configuration, knowledge mobility mechanisms and types of trust).
Research limitations/implications
Further research is needed on transferability of results when, e.g. cultural collaboration and communication patterns change, and performance implications of different configurations. The research provides conceptual tools for future research on the impact of different diversity strategies.
Practical implications
The findings point to the importance of identifying desired types of innovation outcomes and designing the appropriate level of diversity. To implement the selected strategy, managers need to configure communication channels and strength of relationships, establish associated capacity for knowledge transfer and build appropriate levels of trust.
Originality/value
While extant research has provided a solid understanding of benefits from diversity in boundary spanning innovation processes, this paper outlines strategies for managing associated challenges.
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Babu G. Baradwaj, Yingying Shao and Michaël Dewally
The purpose of this study is to conduct an empirical investigation on how country-specific characteristics such as the quality of the institutional environment and the…
Abstract
Purpose
The purpose of this study is to conduct an empirical investigation on how country-specific characteristics such as the quality of the institutional environment and the restrictiveness of capital control policy affect domestic financial sector’s ability to provide liquidity to the economy.
Design/methodology/approach
This study uses panel regressions on international banking data across 102 countries from Bankscope.
Findings
The results show that strong institutions and looser capital control in a country enhance the banks’ role as the liquidity provider to the economy. The study also finds that institutional quality and capital control have a dynamic effect that influences the creation of liquidity. Better institutions benefit the creation of liquidity in either under normal economic conditions or during economic downturn. Loosened capital control, as a result of financial openness, facilitates liquidity creation under normal economic conditions.
Originality/value
This study complements the research on the role of country-level institutions in financial and economic development and suggests a liquidity channel through which a country’s institutions can further economic growth. The study also provides evidence on the impact of a country’s control of capital flows on the role of banking sector in domestic economy.
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Danish Ahmed, Yuantao Xie and Khelfaoui Issam
Life insurance is bought with a prior belief that promise stipulated in policy will be honored when due. Discernibly, this belief is backed by the confidence that financial…
Abstract
Purpose
Life insurance is bought with a prior belief that promise stipulated in policy will be honored when due. Discernibly, this belief is backed by the confidence that financial markets and economy will demonstrate satisfactory performance. However, individuals' confidence levels may get shaken through naïve reinforcement learning if they witness negative market or economic condition. Considering this the authors investigate the relationship between investor confidence and life insurance demand.
Design/methodology/approach
The authors used bias corrected bootstrapped sample of OECD economies to examine the link between investor confidence and life insurance demand when two possible economic conditions were witnessed: 1) normal/economic expansion and 2) economic/debt impairment. The findings are robust to alternate estimation techniques and endogeneity.
Findings
The authors found that lower investor confidence, sovereign debt impairment and negative market condition will have negative repercussion on life insurance demand. On the other hand, investor confidence-life insurance demand nexus is merely influenced by market and economic condition.
Originality/value
This is a premier research explaining the nexus between investor confidence and life insurance demand in the context of life-cycle hypothesis, sovereign ratings channel and experience-confidence-belief framework. The finding will help economic policy-makers in developing pre-emptive measures to protect life insurance businesses from negative repercussions of lower confidence and negative market conditions.
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The neighborhoods north and northwest of downtown St Louis are blighted by their abundance of substandard, abandoned, and demolished housing. Crime, poverty, and unemployment are…
Abstract
The neighborhoods north and northwest of downtown St Louis are blighted by their abundance of substandard, abandoned, and demolished housing. Crime, poverty, and unemployment are high while family stability, educational achievement, and health outcomes are low. These conditions are not unique to St Louis, but can be found in neighborhoods in every city in America. How did this happen? What factors led to the demise of these neighborhoods? This chapter examines the history of St Louis along with theories of neighborhood succession to identify possible explanations for the city's collapse.
IN order to be able to discriminate with certainty between butter and such margarine as is sold in England, it is necessary to carry out two or three elaborate and delicate…
Abstract
IN order to be able to discriminate with certainty between butter and such margarine as is sold in England, it is necessary to carry out two or three elaborate and delicate chemical processes. But there has always been a craving by the public for some simple method of determining the genuineness of butter by means of which the necessary trouble could be dispensed with. It has been suggested that such easy detection would be possible if all margarine bought and sold in England were to be manufactured with some distinctive colouring added—light‐blue, for instance—or were to contain a small amount of phenolphthalein, so that the addition of a drop of a solution of caustic potash to a suspected sample would cause it to become pink if it were margarine, while nothing would occur if it were genuine butter. These methods, which have been put forward seriously, will be found on consideration to be unnecessary, and, indeed, absurd.
Develops principles for banks that want to evaluate thedistribution of life insurance as well as non‐life insurance productsand identifies key factors for profitability. Analyses…
Abstract
Develops principles for banks that want to evaluate the distribution of life insurance as well as non‐life insurance products and identifies key factors for profitability. Analyses the costs of training personnel, the costs of computers and communication, the fixed and variable sales costs, and the costs of administration including customer service. These costs have to be covered by direct benefits in terms of commissions and indirect benefits in terms of more faithful bank customers. Then estimates the profitability of the distribution through a branch network. Develops a model to calculate the “break‐even” sales volume. Identifies five key factors: the number of branches; the number of specialists per branch; the number of customers to the bank; the cross‐selling ratio; and the reduction over time in costs of selling and administration. Gives two examples from the banking sector.
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Mohamed A. Ayadi, Nesrine Ayadi and Samir Trabelsi
This paper aims to analyze the effects of internal and external governance mechanisms on the performance and risk taking of banks from the Euro zone before and after the 2008…
Abstract
Purpose
This paper aims to analyze the effects of internal and external governance mechanisms on the performance and risk taking of banks from the Euro zone before and after the 2008 financial crisis.
Design/methodology/approach
To avoid macroeconomic problems and shocks and because of data availability, the authors select some countries of the Euro zone, namely, France, Belgium, Germany and Finland, during the 2004-2009 period. These countries share similar macroeconomic environments (unemployment, inflation and economic growth rates). All the data relating to the banks are manually drawn from the supervising reports submitted to banks and are available on the banks’ websites and/or on that of the AMF website. The banks included in our sample are drawn from the list of European central banks on www.ecb.int
Findings
The empirical results show that banks undertake tradeoffs between different governance mechanisms to alleviate the intensity of the agency conflicts between the shareholders and managers. The findings also confirm that internal mechanisms and capital regulations are complementary and significantly impact bank performance.
Research limitations/implications
This analysis can be extended through studying the interaction between bondholders’ governance and shareholders’ governance and their impact on the 2008 financial crisis.
Practical implications
The changes in banking governance help banks find a useful and necessary way to avoid ill-considered risks that can cause a systemic risk. Therefore, some conditions should be met so that banking governance can contribute to the economic development.
Social implications
Culture and mentality of good banking governance must grow as much as possible through awareness-raising, training, promotion, recognition of performance, enhancing procedure transparency and stability of good banking governance and regulations, strengthening the national capacity to fight against corruption, and preventive mechanisms.
Originality/value
This paper complements previous studies, mainly those of Andres and Vallelado (2008) who examine the impact of the components of the board on banking performance and of Laeven and Levine (2009) who estimate the combined effect of regulatory and ownership structure on the risk-taking of each bank.
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David Mutua Mathuva and Moses Nzuki Nyangu
In this paper, the authors investigate whether the systemic local banking crises (LBCs) and global financial crisis (GFC) impact the association between bank profit efficiency and…
Abstract
Purpose
In this paper, the authors investigate whether the systemic local banking crises (LBCs) and global financial crisis (GFC) impact the association between bank profit efficiency and earnings quality in developing economies.
Design/methodology/approach
Using panel data spanning 29 years over the period 1991–2019 for 169 banks drawn from five East African countries, the authors perform difference-in-difference multivariate analyses using the generalised method of moments (GMM) system estimator on a sample consisting of 2,261 bank-year observations.
Findings
The results, which are robust for endogeneity and other checks, show that banks with higher profit efficiency consistently report higher quality earnings. The authors further establish that whereas systemic LBCs contribute negatively to bank earnings quality, the GFC tends to have a positive impact. These results are upheld when the joint impacts of both systemic LBCs, GFC and profit efficiency on earnings quality are considered. The positive influence of profit efficiency and GFC on earnings quality is pronounced under income-decreasing earnings management. The impacts of profit efficiency, LBCs and GFC on earnings quality appear to be non-monotonic and vary across the sampled countries.
Research limitations/implications
The study's findings are based on banks in five developing countries within a regional economic bloc. Additional studies could focus on other economic blocs for enhanced generalisability of the findings. In addition, some of the variables examined are studied at bank-level, while other variables are at country-level. Finally, the study establishes an association between the variables of interest, and this does not necessarily imply causation.
Practical implications
The results provide useful insights to bank regulatory and supervisory agencies on the need to exercise increased risk-based scrutiny over bank loan loss provisioning and minimum loan loss reserve requirements. From an audit perspective, auditors need to be cautious and apply an enhanced risk-based audit especially when auditing banks during and after a financial, banking or systemic crisis. Credit rating agencies need to pay closer attention to the LLPs of distressed banks. Finally, bank investors and customers should be cautious when using bank financial statements, since bank managers of poorly performing banks might engage in aggressive earnings management.
Originality/value
The study is perhaps the first to examine the joint effects of systemic LBCs on the association between bank profit efficiency and the quality of earnings in a larger dataset of banks in a developing regional economic bloc. The authors also employ the GMM system estimator in the modelling, which helps address some weaknesses in prior studies.
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The purpose of this paper is to examine the dynamics between income diversification and performance (cost, profit, revenue, technical, pure technical and scale efficiency) for 38…
Abstract
Purpose
The purpose of this paper is to examine the dynamics between income diversification and performance (cost, profit, revenue, technical, pure technical and scale efficiency) for 38 listed Indian banks within panel data framework during the period 2004-2005 to 2015-16.
Design/methodology/approach
This study computes bank’s cost, profit, revenue, technical, pure technical and scale efficiency within intermediation approach with data envelopment analysis (DEA) as a performance indicator, followed by exploring the association between income diversification and bank performance using truncated Tobit regression within panel data framework.
Findings
Tobit regression results revealed inverted U-shaped relationship between the income diversification and estimated efficiency parameters for the overall panel. Size and bank intermediation ratio seems to be a major factor in exploiting the potential benefits of income diversification. The author reconfirmed the inverted U-shaped relationship with these efficiency parameters for exclusive subsamples consisting of government-owned and private sector banks.
Research limitations/implications
Inverted U-shaped relationship between the income diversification and estimated efficiency parameters suggest that banks should go for limited diversification to improve performance. Thus, regulators and banks should pursue limited diversification strategy for improving banking efficiency.
Originality/value
This study computes bank performance (cost, profit, revenue, technical, pure technical and scale efficiency) based on DEA followed by exploring the association between performance and income diversification for 38 Bombay stock exchange listed banks.
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