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Article
Publication date: 11 November 2013

Antonio Dell'Atti, Mariantonietta Intonti and Antonia Patrizia Iannuzzi

Following the subprime crisis and the detrimental role played by remuneration practices, an important reform concerned bank remuneration committees, especially in “significant…

1088

Abstract

Purpose

Following the subprime crisis and the detrimental role played by remuneration practices, an important reform concerned bank remuneration committees, especially in “significant financial institutions”. In light of this consideration, this paper aims to investigate the scope and format of this renewal in order to verify whether and how those bodies are conforming to the new regulatory framework while improving their efficiency and functionality.

Design/methodology/approach

The study was carried out on 30 top European banks through the elaboration of a qualitative analysis model that takes into account both the procedural and the compositional aspects of remuneration committees. The model was used as a benchmark for assessing the effectiveness of the remuneration committees operating within a sample. This assessment was carried out according to the content analysis approach.

Findings

The results show a high diffusion of these bodies within the banks and a gradual expansion, during the time under investigation (three years 2008-2010), of the information provided by them on their tasks and decision-making. In the same time, the study highlights some important criticalities concerning both the composition of the banks' remuneration committees, how they carry out their functions, and the level of disclosure addressed to shareholders and the market in order to formalize the results of their work.

Originality/value

The added value of the analysis is related to the implementation of an “effectiveness remuneration committee rating” applied to a sample of top European banks during the financial crisis.

Details

Journal of Financial Regulation and Compliance, vol. 21 no. 4
Type: Research Article
ISSN: 1358-1988

Keywords

Open Access
Article
Publication date: 23 May 2022

Egidio Palmieri, Enrico Fioravante Geretto and Maurizio Polato

This paper aims to verify the presence of a management model that confirms or not the one size fits all hypothesis expressed in terms of risk-return. This study will test the…

1170

Abstract

Purpose

This paper aims to verify the presence of a management model that confirms or not the one size fits all hypothesis expressed in terms of risk-return. This study will test the existence of stickiness phenomena and discuss the relevance of business model analysis integration with the risk assessment process.

Design/methodology/approach

The sample consists of 60 credit institutions operating in Europe for 20 years of observations. This study proposes a classification of banks’ business models (BMs) based on an agglomerative hierarchical clustering algorithm analyzing their performance according to risk and return dimensions. To confirm BM stickiness, the authors verify the tendency and frequency with which a bank migrates to other BMs after exogenous events.

Findings

The results show that it is impossible to define a single model that responds to the one size fits all logic, and there is a tendency to adapt the BM to exogenous factors. In this context, there is a propensity for smaller- and medium-sized institutions to change their BM more frequently than larger institutions.

Practical implications

Quantitative metrics seem to be only able to represent partially the intrinsic dynamics of BMs, and to include these metrics, it is necessary to resort to a holistic view of the BM.

Originality/value

This paper provides evidence that BMs’ stickiness indicated in the literature seems to weaken in conjunction with extraordinary events that can undermine institutions’ margins.

Details

Journal of Financial Regulation and Compliance, vol. 31 no. 1
Type: Research Article
ISSN: 1358-1988

Keywords

Article
Publication date: 18 November 2013

Stefano Dell'Atti, Stefania Sylos Labini and Saverio Morella

The purpose of this research is to contribute to the development of an effective incentive policy implementation model, through an in-depth analysis of the stock option and/or…

Abstract

Purpose

The purpose of this research is to contribute to the development of an effective incentive policy implementation model, through an in-depth analysis of the stock option and/or stock grant schemes adopted by the major Italian banking groups.

Design/methodology/approach

Out of the 77 banking groups operating in Italy on 30 June 2011, The paper selected 12 banking institutions that implemented either stock option or stock grant plans over the years 2007-2010. The documentary analysis was carried out on 22 stock option and/or stock grant schemes and based on the examination of corporate governance reports, as well as information memoranda on incentive plans.

Findings

The results show a limited implementation of equity-based incentive plans in the Italian banking sector during the investigation period (2007-2010) and clearly demonstrates that, as far as these types of incentives are concerned, there is ample room for improvement as well as substantial adjustments.

Research limitations/implications

The research covers a limited period of time. Therefore, further extending the scope of its survey will definitely be of great academic interest in the light of the latest regulatory changes made to the banking sector remuneration regime.

Originality/value

By giving a clear indication of the critical points that should be addressed to improve the policies in force, this research study aims to provide greater knowledge about the remuneration practices adopted by Italian banks, in terms of equity-based incentive plans.

Details

Qualitative Research in Financial Markets, vol. 5 no. 3
Type: Research Article
ISSN: 1755-4179

Keywords

Open Access
Article
Publication date: 30 August 2022

Antonio Iazzi, Lorenzo Ligorio and Lea Iaia

A model on the cognitive elements of engagement is adopted and content analysis, along with sentiment analysis, has been used to explore the post characteristics and the levels of…

1481

Abstract

Purpose

A model on the cognitive elements of engagement is adopted and content analysis, along with sentiment analysis, has been used to explore the post characteristics and the levels of stakeholders' interactions in controversial and non-controversial European industries through three Poisson regressions. At last, an ANOVA test has been used to check the level of interaction regarding the coronavirus disease 2019 (COVID-19)-related aspects.

Design/methodology/approach

The intrinsic characteristics of controversial industries cause the stakeholders’ skepticism about their corporate social responsibility (CSR) strategies. This results in the need to elaborate proper involvement strategies to approach industries' stakeholders. Such need has assumed relevance during the COVID-19 crisis and has traced a certain border between the companies that are more sensitive to the social side of the surrounding environment and the ones that are less involved in risky sectors. The present paper aims to understand the role of social media in stakeholder engagement, and social media's characteristics, and tries to elaborate on companies' CSR communication readiness to the challenges shown by the pandemic.

Findings

The study reveals how the success of stakeholder engagement in CSR communication is affected by both controversial sector membership and the characteristics of the posts such as the inclusion of the sustainable development goals (SDGs). In addition, the study emerges how the European companies have focused on social aspects in companies' communication, revealing a certain readiness for the COVID-19 challenges.

Practical implications

Building on a model of cognitive elements of engagement, the present study provides useful insights for companies' next engagement strategies on social media. Moreover, the thematic analysis provides a benchmark for the improvement of current corporations' communication strategies in light of the pandemic effects.

Originality/value

This paper contributes to the literature by investigating the role of Twitter as a stakeholder engagement tool and identifies the drivers for an effective Twitter content strategy. Moreover, the paper provides a useful proxy for current and future research on the COVID-19-related CSR communication.

Details

Management Decision, vol. 60 no. 10
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 17 January 2022

Grazia Dicuonzo, Francesca Donofrio, Antonio Fusco and Simona Ranaldo

Transformational entrepreneurship (TE) is a concept referring to the ability of entrepreneurs to face global challenges, such as the economic crisis, to improve the well-being of…

Abstract

Purpose

Transformational entrepreneurship (TE) is a concept referring to the ability of entrepreneurs to face global challenges, such as the economic crisis, to improve the well-being of the community. Considering the current scenario of COVID-19, the way digital platforms support TE in overcoming a crisis, specifically the economic crisis caused by the pandemic, was analysed.

Design/methodology/approach

To achieve the goal, the authors used the case study methodology. The interview was compared for the company analysed stands out due to its use of digital platforms as a tool to increase brand value. The authors conducted a semi-structured, open-ended interview with the entrepreneur and founder of Yamamay, a company operating in the retail sector. The results obtained from validity using the open coding method.

Findings

The main findings show that the implementation of digital platforms supported the entrepreneur in formulating strategic choices that allowed the company to continue offering its services despite the store closures imposed by the pandemic. The whole concept of traditional retail has been and continues to be revised, rationalising it and integrating it with a more omnichannel logic in which digital platforms play a fundamental role.

Practical implications

This paper provides market participants with useful information regarding the ability of this form of technology to support entrepreneurs in a crisis context. The results could also serve as an example for other retail companies regarding how to manage the consequences of the pandemic.

Originality/value

This contribution represents an extension of the existing literature that deepens the understanding of the relationship between digital platforms and TE in a particular scenario, such as the COVID-19 pandemic. The effect of business decisions on the adoption of digital platforms to meet increasing and changing customer needs has been examined.

Details

Journal of Strategy and Management, vol. 15 no. 3
Type: Research Article
ISSN: 1755-425X

Keywords

Article
Publication date: 22 December 2022

Rym Ammar, Sonia Rebai and Dhafer Saidane

The purpose of this paper is to suggest a model that yields a sustainability performance index for Islamic banks (IBs). This index is expected to account for stakeholders’…

Abstract

Purpose

The purpose of this paper is to suggest a model that yields a sustainability performance index for Islamic banks (IBs). This index is expected to account for stakeholders’ viewpoints while considering sustainability and Maqasid Al-Shariah as bases.

Design/methodology/approach

First, based on the relevant literature review refined through consultations with academic, banking and Shariah experts, the main stakeholders and their corresponding lists of relevant attributes and sub-attributes are identified. Then, adopting a multi-attribute utility approach and based on a second step of interviews with experts, an aggregated index is suggested. Finally, the developed index is applied to five famous Islamic banking groups over the period 2005–2019.

Findings

Empirical evidence shows that the banks used in the implementation do not achieve high scores of the suggested index. This can be interpreted through a lack of Islamic normative aspects and low adherence to sustainability practices. Specifically, they are not functioning on a justice basis and are deficient in providing sufficient varieties of Islamic products. They are also more interested in economic sustainability and are not involved in environmental and social ones.

Originality/value

The developed index not only considers the compliance of the banking activities with Shariah, but it also addresses their sustainability from the main stakeholders’ perspectives. The suggested model provides a transparent performance evaluation tool for IBs omitting all causes of conflict of interests and certifies the fairness of the resulting assessments.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 16 no. 4
Type: Research Article
ISSN: 1753-8394

Keywords

Article
Publication date: 4 March 2022

Wan A'tirah Mahyudin and Romzie Rosman

This study aims to systematically explore the approaches used by previous studies in measuring the performance of Islamic banks based on maqāṣid al-Sharīʿah.

Abstract

Purpose

This study aims to systematically explore the approaches used by previous studies in measuring the performance of Islamic banks based on maqāṣid al-Sharīʿah.

Design/methodology/approach

The data obtained in this study were derived from a review of empirical literature based on 15 articles published between 2012 and 2019. The sample articles on the performance of Islamic banks based on maqāṣid al-Sharīʿah were located by searching keywords in the most relevant social science research databases such as Scopus, Web of Science and EBSCOhost.

Findings

The emerging trend in measuring the performance of Islamic banks from the maqāṣid perspective highlighted that there is insufficient research on the determinants of Islamic bank performance.

Practical implications

The reviews undertaken in this paper will resolve the literature gaps in the area of maqāṣid al-Sharīʿah and Islamic banks, as this study serves as a reference for scholars, academicians and interested researchers in Islamic banking and finance studies to pursue more research in this area.

Social implications

Performance measurement based on maqāṣid al-Sharīʿah enhances society’s confidence in supporting Islamic banking practices, particularly among the Muslim community. Islamic banks can also be exemplary financial intermediaries supporting fair and equitable financial systems for the entire community.

Originality/value

This paper is original in its nature, considering that understanding the relationship between maqāṣid al-Sharīʿah and the performance of Islamic banks is limited. This paper reveals a literature gap that can be explored by future studies theoretically and practically.

Details

Journal of Islamic Accounting and Business Research, vol. 13 no. 4
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 22 July 2022

Namita Jain, Asha Thomas, Vikas Gupta, Mario Ossorio and Daniele Porcheddu

The research aims to measure the effectiveness of collaborative learning exchanges transpired through digital tools and technologies (DT&Ts) employed by the mentor universities…

Abstract

Purpose

The research aims to measure the effectiveness of collaborative learning exchanges transpired through digital tools and technologies (DT&Ts) employed by the mentor universities during the COVID-19 pandemic by conducting an empirical study on undergraduate students in Indian higher educational institutions (HEIs) under the mentorship program based on the corporate social responsibility (CSR) initiative. The pandemic scenario, its impact on the mentor university's social responsibility and the way DT&Ts can assist are investigated in this article.

Design/methodology/approach

The interactions with experts and students were conducted to explore the DT&Ts for learning exchanges. Next, structural equation modeling (SEM) was performed to validate the model and perform regression analysis. The quantitative data collection was made through questionnaires during the second deadly wave of COVID-19 that hit India.

Findings

The independent variables (IVs) such as the IT infrastructure support (IT_IS), virtual collaborative tools (VCTs) and future-oriented technologies (FOTs) have a significant impact on the CSR learning outcomes (CSR_LOs) of undergraduate students under the mentorship program. However, IV research instruments for innovation could not make a significant effect.

Research limitations/implications

The IVs IT_IS, VCTs and FOTs influence the CSR_LOs, while RII does not have an influential impact.

Practical implications

As the online learning environment is expected to stay at least in a blended form, adequate CSR funding in infrastructure is necessitated to harness the full potential of this important resource, technology. The results of this empirical investigation affirm that IT_IS, VOTs and FOTs significantly impact CSR_LOs during the crisis. The study findings would encourage the mendtor universities and their stakeholders, including the mentee universities, to evolve and create an ecosystem for effective management of these resources to attain positive outcomes. The study findings can guide the mentor universities in managing uncertainties like pandemics and effectively using the earlier-mentioned critical resources for social responsibility. This research also allows the development of future applications adnd models in mentor-mentee universities for social responsibility, post-pandemic transformation and resilience.

Social implications

The DT&Ts came to the immediate rescue during the pandemic and positively affected collaborative CSR_LOs by the mentor universities, but they have not evolved to a level where offline learning can be replaced entirely. Hence, it can be inferred that a hybrid model is preferable. The study also improves the understanding of how DT&Ts are being harnessed to aid collaborative learning in fulfilling the mentors' CSR in fatal emergencies. The purpose is to equip the education system through mentorship so that universities can sustain, innovate and grow even in trying times. Also, it discusses the dynamics of various DT&Ts for creating a sustainable learning environment and utilizing them to make the teaching prolific and influential.

Originality/value

There is a scarcity of literature regarding the learning outcomes realized through CSR initiatives and collaboration between mentor-mentee institutions. There is a need to understand how these knowledge exchanges continued despite the physical restrictions during the pandemic. In this direction, this study helps to understand how the DT&Ts played a critical role in continuing learning and keeping abreast in a knowledge society from the perspective of resource-based view (RBV) in these precarious situations.

Details

Management Decision, vol. 60 no. 10
Type: Research Article
ISSN: 0025-1747

Keywords

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