Contemporary issues in banking regulation, governance and performance

PA LG R AV E M AC M I L L A N S T U D I E S I N
BANKING AND FINANCIAL INSTITUTIONS
S E R I E S E D I TO R : P H I L I P M O LY N E U X

Contemporary
Issues in Banking
Regulation, Governance and Performance

Edited by Myriam García-Olalla and Judith Clifton


Palgrave Macmillan Studies in Banking
and Financial Institutions
Series Editor
Philip Molyneux
University of Sharjah
Sharjah, United Arab Emirates


The Palgrave Macmillan Studies in Banking and Financial Institutions
series is international in orientation and includes studies of banking systems
in particular countries or regions as well as contemporary themes such as
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Myriam García-Olalla  •  Judith Clifton
Editors

Contemporary Issues
in Banking
Regulation, Governance and Performance


Editors
Myriam García-Olalla
Facultad de Económicas
University of Cantabria
Santander, Spain

Judith Clifton
Facultad de Económicas
University of Cantabria
Santander, Spain

ISSN 2523-336X    ISSN 2523-3378 (electronic)
Palgrave Macmillan Studies in Banking and Financial Institutions
ISBN 978-3-319-90293-7    ISBN 978-3-319-90294-4 (eBook)
/>Library of Congress Control Number: 2018944360
© The Editor(s) (if applicable) and The Author(s) 2018
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Acknowledgements

The editors are aware that the project that gave rise to this book required
the collaboration of many other people, to whom we are sincerely grateful.
At the risk of forgetting some of these people, we want to mention in
particular the following and express our gratitude to them.
First, we would like to thank the authors of the chapters included here
in this volume, who have provided us with their best reflections and
research efforts in order to increase our knowledge about the contemporary
challenges affecting the financial sector. We are also very grateful to the
“European Association of University Teachers of Banking and Finance”
and, in particular, all participants in the Wolpertinger Conference, held in
Santander, in September 2017.
Special thanks is due to Philip Molyneux, Dean of the College of Business
Administration at the University of Sharjah and Editor-in-Chief of the
Palgrave Macmillan Studies in Banking and Financial Institutions, where

this book is also published, as well as President of the “European Association
of University Teachers of Banking and Finance”. His continual, systematic
and generous help and collaboration is always way beyond what is required.
Finally, we would like to gratefully acknowledge financial support to
this project from the Santander Financial Institute through the project
“Governance, Incentives and Risk Management in Global Banks” (APIE
2/2015–2017). In addition, we acknowledge that this book forms part of
the Jean Monnet Chair in European Economic Policy for Business and
Civil Society (586909-EPP-1-2017-1-ES-EPPJMO-CHAIR 2017/2340),
directed by Judith Clifton, and the Jean Monnet Module in Europe
Finance and Institutions: Post-crisis Challenges (586917-EPP-1-2017-1ES-EPPJMO-MODULE) directed by Myriam García-Olalla.
v


Contents

1Introduction   1
Myriam García-Olalla and Judith Clifton
Part I Regulation   9
2The Impact of Recent Regulatory Reform on the Use
of Supply Chain Finance: The Case of Reverse Factoring  11
Viktor Elliot and Ted Lindblom
3The Bank Resolution Framework in the European
Union: Preliminary Evidence from Specialized and
Regional Banks  31
Ewa Miklaszewska and Jan Pys
4Market Risk Disclosure in Banks’ Balance Sheets and the
Pillar 3 Report: The Case of Italian Banks  53
Enzo Scannella
5Central Banks’ Communication Strategies: Just Words?  91

Vincenzo Farina, Giuseppe Galloppo, and Daniele A. Previati

vii


viii  

Contents

6Complaining in Consumer Credit: Evidence from the
Italian Financial System 123
S. Cosma, F. Pancotto, and P. Vezzani
Part II Corporate Governance and Performance 149
7Bank Boards in Europe: Trade-Offs in Size, Composition,
and Turnover 151
Eleuterio Vallelado and Myriam García-Olalla
8The Impact of Internal Corporate Governance Mechanisms
on Corporate Social Performance in the Banking Industry 181
José L. Fernández Sánchez, María D. Odriozola,
and Manuel Luna
9Bank Ownership and Firm-Level Performance: An
Empirical Assessment of State-Owned Development
Banks 197
Marco Frigerio and Daniela Vandone
10Non-financial Rating and Socially Responsible Investment
Reaction to Financial Turmoil 221
Helen Chiappini and Gianfranco A. Vento
11What Determines Interest Margins? The Case of Chinese
Banks 239
Ming Qi and Jiawei Zhang

Part III Firm Financing and Valuation 253
12How Do Banks and Investment Funds Affect Family
Risk-Taking? Evidence from the Financial Crisis 255
David Blanco-Alcántara, Jorge B. Farinha, Mauricio
Jara-Bertín, Óscar López-de-Foronda, and Marcos
Santamaría-Mariscal


 Contents 
  

ix

13Does Bank Regulation Spill Over to Firm Financing?
SME Financing, Bank Monitoring, and the Efficiency
of the Bank Lending Channel 279
Viktor Elliot and Magnus Willesson
14Earn-outs in Debt Restructuring Plans: Economics and
Valuation 303
Josanco Floreani, Maurizio Polato, and Maurizio Massaro
15Book and Market Values of European Banks: Country,
Size, and Business Mix Effects 329
Riccardo Ferretti, Andrea Landi, and Valeria Venturelli
Part IV Contemporary Issues 361
16Assessing and Measuring Banking Culture 363
Beatriz Fernández Muñiz, José Manuel Montes Peón, and
Camilo José Vázquez Ordás
17A Multidimensional Approach to Equity Crowdfunding:
Bridging the Equity Gap and Boosting Social Capital 389
Bernardo Balboni, Elisabetta Gualandri, Ulpiana Kocollari,

Alessia Pedrazzoli, and Valeria Venturelli
18Structure and Risks of the Chinese Shadow Banking
System: The Next Challenge for the Global Economy? 409
Piotr Łasak
19Analysis of the Main Trends in European and US Banks
and Their Impact on Performance 427
Giusy Chesini and Elisa Giaretta
Index 451


Notes on Contributors

Bernardo Balboni  is Assistant Professor at the Marco Biagi Department
of Economics of the University of Modena and Reggio Emilia. His
research interests include international and business marketing, SMEs’
growth and business model design of new ventures. On these topics, he
has published some papers in international scientific journals, including
Industrial Marketing Management, Journal of Business Research, European
Management Review and The Service Industries Journal.
David  Blanco-Alcántara is an Assistant Professor of Finance in the
Department of Business at the University of Burgos (Spain). He received
the degree in Economics and Business Administration in Valladolid (Spain)
and his PhD in Economics and Business Administration (interuniversity
programme) at the University of Burgos, León, Salamanca and Valladolid
(Spain). He has been Visiting Scholar at Leeds University Business School
(University of Leeds, UK); Visiting Scholar at Business School, University
College Dublin; and Visiting Scholar at the Center for Economics and
Finance at the University of Porto. His research focuses on corporate
governance, corporate finance, corporate social responsibility and social
networks among directors. He has published in journals such as

Transformations in Business and Economics, Revista Internacional de
Sociología and Estudios Financieros-Revista de Contabilidad y Tributación.
Giusy  Chesini  is an Associate Professor in Banking and Finance at the
University of Verona, Italy. She holds a PhD in financial markets and intermediaries from the University of Bergamo, Italy. Giusy is also the author of
xi


xii  

NOTES ON CONTRIBUTORS

several papers and books related to the evolution of financial intermediation.
Her research topics include financial markets, stock exchanges, banking
and corporate finance.
Helen  Chiappini  is Postdoctoral Research Fellow at G.  D’Annunzio
University of Chieti and Pescara and Teacher Assistant in Corporate
Finance at Luiss Guido Carli University. She taught in a MBA course
and in a MSc course at Link Campus University of Rome and at
Pontificia Lateran University of Vatican City. She was Visiting Research
Fellow at the Centre of Banking and Finance of Regent’s University
London, and she received a PhD cum laude in Banking and Finance at
the Sapienza University of Rome. Her areas of research include social
impact investments, socially responsible investments and non-performing loans management strategies. She recently published a book titled
Social Impact Funds: Definition, Assessment and Performance with
Palgrave Macmillan (2017).
Judith  Clifton  is Professor of Applied Economics at the University of
Cantabria, Spain. She holds a DPhil in Political Economy from the
University of Oxford, and has lectured at Oxford, Leeds, Oviedo, Cornell
and Cantabria universities. She has published widely in international journals and is Editor of Journal of Economic Policy Reform and Cambridge
Journal of Regions, Economy and Society. Research interests include public

policy, regulation and public services.
S. Cosma  is an Associate Professor of Banking and Finance at the Marco
Biagi Department of Economics of the University of Modena and Reggio
Emilia, where he is a member of CEFIN (Center for Studies in Banking
and Finance). He obtained a PhD in Business Administration from Cà
Foscari University, Venice. He is a member of the European Association of
University Teachers in Banking and Finance, of ADEIMF (Italian
Association of Teachers in Banking and Finance) and of AIDEA (Italian
Academy of Business Administration and Management). He is a member
of scientific committee of Banking and Financial Diploma of the Italian
Banking Association (ABI). He is chairman of Sella Personal Credit (Sella
Banking Group) and serves as a consultant for public and private institutions. Research topics include corporate and retail lending, consumer
credit, customer behaviour, consumer over-indebtedness, behavioural
finance and the economics of banking. He is author of several articles and
books.


  NOTES ON CONTRIBUTORS 
  

xiii

Viktor Elliot  is a researcher at the School of Business, Economics and
Law at the University of Gothenburg. Dr. Elliot finished his PhD on
Performance Management Systems, Regulation and Change in Swedish
Banks in 2015. Since then Dr. Elliot has won research funds for three
projects related to banking, consumer finance, regulatory arbitrage and
supply chain finance within which he is currently conducting research. Dr.
Elliot has published his work in several leading academic outlets. He also
teaches courses in accounting and finance including financial institutions

and markets, topics in finance and enterprise risk management as well as
executive educations for retail bankers and board of directors.
Vincenzo  Farina is Associate Professor of Financial Markets and
Institutions in the Department of Management and Law at the University
of Rome Tor Vergata and Adjunct Professor of Financial Management and
Financial Markets in the Department of Finance at Bocconi University.
He is member of scientific board of PhD in “Economia Aziendale”,
University of Rome Tor Vergata. His research has been published in
Journal of Banking and Finance, European Financial Management,
European Management Review, Applied Financial Economics and
Corporate Governance, among others.
Jorge  B.  Farinha  is an Assistant Professor of Finance at Faculdade de
Economia do Porto, University of Porto (UP), Portugal, and a researcher
at the Center for Economics and Finance at UP (CEF.UP). He holds a
degree in Economics from UP; a MBA from INSEAD, France; and a PhD
in Accounting and Finance from Lancaster University, UK. He has also
been a non-executive director at Martifer SGPS (a company listed in NYSE
Euronext Lisbon) since 2008 and has served as Vice-Dean of Porto
Business School (2009–2015). His research focuses on corporate governance, corporate finance and banking and has been published in journals
that include among others Journal of Business Finance & Accounting,
Review of Financial Markets, International Journal of Auditing, European
Journal of Finance, Journal of Banking Regulation, Research in International
Business and Finance, European Business Review, Journal of International
Economic Law and International Review of Financial Analysis.
Beatriz Fernández Muñiz  is Associate Professor of Business Organization
at the Business Administration Department of the University of Oviedo,
Spain. Her primary areas of research interest are safety culture and climate.
She has published on these issues in leading journals such us Accident

xiv  

NOTES ON CONTRIBUTORS

Analysis & Prevention, Journal of Cleaner Production, Journal of Loss
Prevention in the Process Industries, Journal of Safety Research and Safety
Science. She has also contributed to a number of books and presented
her research at various academic conferences.
José  L.  Fernández  Sánchez is professor of Business Economics and
researcher of the IDES research group at the University of Cantabria in
Santander (Spain). He obtained his PhD in Business Administration from
the University of Cantabria and two master’s degrees in Marketing (ESIC)
and Economics (Queens College, City University of New York (CUNY)).
He is lecturer in the Master of Banking and Financial Markets of the
University of Cantabria and Santander Bank teaching the subject of investment funds. His research interests are related to social funds, CSR,
corporate governance, corporate reputation and corporate performance.
His work has been published in different academic journals such as the
Spanish Journal of Finance and Accounting, Corporate Social Responsibility
and Environmental Management, Business Strategy and the Environment,
Corporate Reputation Review, Corporate Governance: The international
journal of business in society, the Journal of International Business Research
or the International Journal of Disclosure and Governance.
Riccardo Ferretti  is Professor of Banking and Finance at the University
di Modena and Reggio Emilia, Italy. He holds a PhD in Financial Markets
and Portfolio Management from the University of Bergamo. He has been
a visiting PhD student at the Graduate School of Business Administration,
New  York University. His main research interests are the efficiency of
financial markets, the valuation of banks, behavioural finance and the corporate governance of banks. He is author of several articles in leading
academic journals and referee of national and international journals. He is
a member of CEFIN (Center for Studies in Banking and Finance),

European Association of University Teachers in Banking and Finance,
AIDEA (Italian Academy of Management) and ADEIMF (Associazione
dei Docenti di Economia degli Intermediari e dei Mercato Finanziari e
Finanza d’impresa).
Josanco Floreani  is an Associate Professor in Banking and Finance at the
University of Udine. He has graduated in Economics and holds PhD in
Business Administration from the University of Udine. He has a ten-year
teaching experience in finance. After teaching Intermediaries and Financial
markets, he currently teaches Corporate Finance. His main research


  NOTES ON CONTRIBUTORS 
  

xv

interests cover Islamic finance, bank’s loan portfolio quality, bank value
and SMEs financing.
Marco  Frigerio  is a Research Fellow of Banking and Finance at the
Department of Economics, Management and Quantitative Methods,
University of Milan. He holds a PhD in Economics, Markets and
Institutions from the IMT Lucca Institute for Advanced Studies. He has
worked as researcher at Banca MPS and UniCredit. His research interests
are in financial economics, development banks, banking markets and
international finance.
Giuseppe  Galloppo  is Assistant Professor at the Tuscia University of
Viterbo, Fellow Researcher at Ceis Foundation University of Rome Tor
Vergata and Quantitative Asset Allocation Manager at Arianna Sim S.p.A.
Research areas covered are asset allocation, portfolio model risk management and econometrics of financial markets. He worked as member in
several research teams focused on different topics: Territorial Strategic

Develop Economic Plans for CNR National Council of Research, public
transport statistic system for Statistical Information Commission—
Presidency of Prime Minister Authority, Project Manager for building
platform for financial data.
Myriam  García-Olalla  is Professor of Finance and Accounting at the
University of Cantabria, Spain. She holds a PhD in Economics and
Business from the University of Oviedo (Spain), and she has been Professor
at the University of Oviedo and visiting researcher at the universities of
Berkley (USA) and Bangor (UK). She has carried out several positions as
her university and UCEIF Foundation (Fundación de la Universidad de
Cantabria para el Estudio e investigación del Sector Financiero). Her main
research interests are banking, corporate governance and corporate
finance. She has published scientific books and articles in relevant international economics and finance journals, and she is member of scientific
associations and editorial boards.
Elisa  Giaretta  is a Research Fellow at the University of Verona, Italy,
where she received a PhD in Business Administration and Management.
She works at the Polo Scientifico e Didattico di Studi sull’Impresa, an academic centre focused on the analysis of Italian enterprises. Her research
topics include private equity, firms’ networks and bank risks.


xvi  

NOTES ON CONTRIBUTORS

Elisabetta Gualandri  holds an MA in Financial Economics and is Full
Professor in Banking and Finance at the Marco Biagi Department of
Economics of the University of Modena and Reggio Emilia, where she is
Deputy Director of Softech-ICT, industrial research centre. She is a
member of CEFIN—Center for Studies in Banking and Finance. She is a
director of the European Association of University Teachers in Banking

and Finance. She served as an auditor of the Italian central bank, Bank of
Italy, from 2007 to 2012, when she was appointed to the Board of
Directors of BPER Banca. She is advisor of the European Commission
for Horizon 2020, Access to Risk Finance. Her recent research topics
include financial regulation and supervision, analysis of banks’ business
models, the European Banking Union, the financing of innovative SMEs
and crowdfunding. On these themes, she has published several articles
and papers.
Mauricio  Jara-Bertín is an Assistant Professor of Finance at the
Department of Business Administration of the University of Chile. He
received his PhD at Universidad de Valladolid, Spain. His Doctoral Thesis
won the Foundation of Financial Studies 2011 Prize and the AsepucICAC 2011 prize. He has published in journals such as Corporate
Governance: An International Review, Emerging Markets Review, Journal
of Financial Stability, Journal of Family Business Strategy, Applied
Economics and Emerging Markets Finance and Trade, among others. His
main research topics are related to corporate finance, corporate governance and family firms.
Ulpiana Kocollari  is Assistant Professor in Accounting and Management
at the Marco Biagi Department of Economics and Management of the
University of Modena and Reggio Emilia where she teaches Business Ethics
and Corporate Social Responsibility and Accounting. She is member of
Softech-ICT and has taken part to numerous research projects in collaboration with other universities and firms engaged in social responsibility
funded by the EU, the Italian Ministry of University and Research, Emilia
Romagna Region and other research institutions. Her research activity
has been developed mainly on the following accounting and management
topics, producing several publications: Corporate Social Responsibility,
Social Accounting, Social Entrepreneurship and Crowdfunding.
Andrea Landi  is Professor of Banking and Finance at the University di
Modena and Reggio Emilia, Italy. He has been a visiting PhD student at
Wharton School in the University of Pennsylvania. His main research

  NOTES ON CONTRIBUTORS 
  

xvii

interests are the structure of financial systems, the efficiency and
competition in the banking markets and the bank-firm financial relationship. He is author of several articles in leading academic journals and
referee of national and international journals. He is a member of CEFIN
(Center for Studies in Banking and Finance), European Association of
University Teachers in Banking and Finance, AIDEA (Italian Academy of
Management) and ADEIMF (Associazione dei Docenti di Economia degli
Intermediari e dei Mercato Finanziari e Finanza d’impresa).
Piotr  Łasak graduated from the University of Economics in Krakow
(MA in Economics, 2003) and the Jagiellonian University (PhD in
Finances, 2008). Currently he is an Assistant Professor in the Institute of
Economics, Finance and Management of the Jagiellonian University. His
research interests focus on topics related to international financial markets’
development. Among the most important topics are financial markets’
regulation and supervision, mechanisms of financial and currency crises
and shadow banking systems development. He is an author of several
dozen articles related to these abovementioned topics.
Ted Lindblom  is a Professor at the School of Business, Economics and
Law at the University of Gothenburg, Sweden. His research interest covers
corporate finance, pricing, risk management and banking. In the banking
area, he has for more than 30 years been studying regulation, risk management, market structural changes, the pricing of payments services in
mainly retail banking and lately the growing use of different supply chain
finance arrangements. He has authored and co-authored several articles
and books regarding these issues.
Óscar López-de-Foronda  is a Senior Lecturer in Corporate Finance in

the Department of Business at the University of Burgos. He received the
degree of Business Management at the University of Navarra (Spain) and
his PhD in Economy at the University of Burgos. His main research
focuses on dividend policy, ownership structure in corporate governance,
corporate social responsibility and social networks among directors. He
has published several papers in, among others, Corporate Governance: An
International Review, European Journal of Finance, Applied Economics,
European Journal of Finance and Transnational Corporations Review. He
has been the Dean of the Faculty of Economics at the University of Burgos
during the years 2012–2015 and the Director of the MBA programme
during the years 2011–2014.


xviii  

NOTES ON CONTRIBUTORS

Manuel  Luna  is a researcher of the IDES group at the University of
Cantabria focused on data management and AI techniques applied to the
decision-making process. He has master’s degrees in Banking and Financial
Markets, Strategic Planning, as well as in Data Science and Big Data. He’s
currently developing his PhD in Business Administration. During a period
of time, he also worked for Santander Bank in the UK as consultor of corporate banking.
Maurizio Massaro  has been lecturer at Udine University since 2008. He
has been a Visiting Professor at Florida Gulf Coast University and Leicester
University. His research interests include knowledge management,
intellectual capital and research methods. In 2016, he won the
Emerald Literati Award for Excellence as Highly Commended Paper
in the Journal of Knowledge Management. His last book Sustainable
Development in the Developing World got the endorsement of US ambassador Andrew Young who wrote the “to the reader” section and was

presented at the UN in Geneva in 2014.
Ewa Miklaszewska  is a Professor in Banking and Finance at the Cracow
University of Economics, where she chairs the Banking Division, and an
Associate Professor at the Jagiellonian University in Cracow, Poland,
Dept. of Management and Public Communication. She has held several
visiting positions in Polish and foreign universities and regulatory bodies.
She specializes in strategic and regulatory developments in the global
banking industry.
José Manuel Montes Peón  is Professor of Business Organization at the
Business Administration Department of the University of Oviedo, Spain.
He is author and co-author of various books, chapter books and papers
published in both national and international scientific journals in areas
such as organizational learning, innovation, safety culture and climate,
banking strategy and firm competitiveness. He was Vice-Dean in the
Faculty of Economics and Business Sciences, and he has also served as
Business Administration and Accounting Department Secretary, both
positions at the University of Oviedo.
María D. Odriozola  is lecturer of Business Administration and researcher
of the IDES research group at the University of Cantabria. She is also business consultor in Human Resources (HR) management. She obtained her
MBA from the University of Cantabria, and she earned her PhD in Business
Administration at the University of Cantabria in 2015. Her primary


  NOTES ON CONTRIBUTORS 
  

xix

research areas include CSR in the field of human resources and corporate
reputation. He has published in different academic journals such as the

International Journal of Manpower, Employee Relations, Corporate Social
Responsibility and Environmental Management, Business Strategy and the
Environment and the International Journal of Disclosure and Governance.
Alessia  Pedrazzoli is a PhD student in “Labour, Development and
Innovation” at the Marco Biagi Department of Economics of the
University of Modena and Reggio Emilia. Her research interests include
crowdfunding, social impact investments and new instruments in the
entrepreneurial finance market.
Maurizio  Polato is Full Professor in Banking and Finance in Udine
University. His research fields mainly relate to the securities and exchange
industry and bank performance. He is author of various publications on
the topic which address issues related to the industry structure, measurement of performances and value for security exchanges and regulation.
F. Pancotto  is an Associate Professor in Economics at the Department of
Communication and Economics of the University of Modena and
Reggio Emilia. She graduated in Economics from Bocconi University
in Milan and obtained a PhD in Economics from S.  Anna School of
advanced studies in Pisa. She has published in international refereed articles in the field of behavioural finance and economics studying irrational
behaviours of investors as well as the choice of the general population in
the context of social norms. In 2014 she won the Big Data Challenge in a
team of the University of Modena and Reggio Emilia proposing a new
metrics of social capital using data from cell phone activities. In 2016 she
funded the Reggio Emilia Behavioral and Experimental Lab, a mobile
laboratory intended to collect data on individual behaviour in economic
context on the field.
Daniele A. Previati  is Full Professor of Financial Markets and Institutions
in the Department of Business Studies of the University of Rome III, and
Professor at the Bocconi University SDA Business School, Milan. He has
been teaching banking and finance for more than 30 years, with particular
focus on bank management, strategy and organization in the financial services industry and fintech. His main research interests relate to various
perspectives on bank management: human resources management, intellectual capital, organizational change, stakeholder management and

finance for SMEs, with particular focus on crowdfunding. He has pub-


xx  

NOTES ON CONTRIBUTORS

lished widely in academic journals and books. He has also acted as a consultant for banks and the Italian Central Bank on organization design and
human resources management.
Jan  Pys  is a PhD student at the Cracow University of Economics. He
holds charters in accounting (FCCA) and financial analysis (CFA). He has
over ten years of practical experience in banking sector, particularly
within finance and risk domain. Currently, he works as a senior regulatory specialist for ING Group, focusing on the area of prudential
regulations. His areas of interests centred on regulations related to
bank solvency, recovery and resolution.
Ming  Qi  is Associate Professor of Banking and Finance at School of
Business Administration, China University of Petroleum, Beijing. He
received a BM from Beihang University in 2003, a MS from Humboldt
University of Berlin, Germany, and PhD in Economics from Universidad
de Granada in Spain. He was a visiting scholar at Hohenheim University in
Germany and Macquarie University in Australia. His research interests
focus on commercial bank management and international Finance. His
research is supported by Beijing Natural Science Foundation and Marsden
Foundation, New Zealand. He has written several articles for International
Journal of Technology Management, Asian Pacific Journal of Risk and
Insurance, Journal of Applied Finance & Banking, and so on.
Marcos Santamaría-Mariscal  is an Assistant Professor of Finance at the
University of Burgos. He studied Economics and Business Studies at
UNED (Universidad Nacional de Educación a Distancia), and he received
his PhD in the Interuniversity Master and Doctoral Program “New

Trends in Business Management” (by Universities of Valladolid,
Salamanca, Burgos and Leon). He obtained the Special PhD Award, and
he was also awarded by the Center of Financial Studies (CEF) in 2008 for
his research about corporate governance in banks. His research focuses on
corporate governance in banks and, more recently, on behavioural finance.
His works are published in journals such as the Corporate Governance: An
International Review, Journal of Banking and Finance, Managerial and
Decision Economics and Universia Business Review, among others.
Enzo  Scannella  holds a MBA and PhD and is Associate Professor of
Banking and Finance in the Department of Economics, Business and
Statistics at the University of Palermo (Italy) where he teaches Banking,
Economics and Management of Financial Institutions and Risk


  NOTES ON CONTRIBUTORS 
  

xxi

Management. His main research interests are focused on banking, financial regulation, risk management and financial innovation. He has held
visiting positions in foreign universities, including Harvard Business
School and Universidad Autónoma de Madrid. He is a member of several
scientific associations, university research groups and editorial boards. His
publications appear in leading nationally and internationally recognized
academic journals. He is Editor-in-Chief of the International Journal of
Financial Innovation in Banking.
Eleuterio Vallelado  is Professor of Finance at the University of Valladolid,
Spain, and National Expert at European Commission. He obtained his
bachelor’s degree in Economics and Business and PhD at the University
of Valladolid (Spain) and MBA from Stern School of Business, New York

University (USA). He is a Fulbright Scholar from 1989 to 1991. He
served as Vice Chancellor of Strategic Planning from 2006 to 2008 at the
University of Valladolid. He has published widely in corporate finance,
banking and behavioural finance areas. His current research focus on
banking strategies, behavioural finance, the relevance of institutional setting on corporate finance and corporate governance, compensation and
models of financial system.
Daniela  Vandone is Full Professor of Banking and Finance at the
Department of Economics, Management and Quantitative methods of the
University of Milan. Her research interests are in financial markets and
institutions, with a focus on structure and performance features of banking markets, financial regulation, financial decision-making and personal
debt. She published widely in books and peer-reviewed international
journals.
Camilo  José  Vázquez  Ordás  holds a PhD in Economics and Business
Administration and Professor of Business Administration at the University
of Oviedo. He has been visiting researcher at the Bangor University (UK).
His research lines are related to industry analysis and business strategy, as
well as the prevention of occupational risks, fields in which he has published more than 180 scientific papers. He has held various positions at the
University of Oviedo and other institutions and companies, having been
General Manager of the Gijon Chamber of Commerce and independent
member of the board of directors in several family businesses. He has also
done external consultancy for domestic banks for over ten years.


xxii  

NOTES ON CONTRIBUTORS

Gianfranco A. Vento  (MSc, PhD) is Professor of Banking and Finance at
Regent’s University London and at Guglielmo Marconi University in
Rome. At Regent’s University, he was Director of the Centre for Banking

and Finance and member of the academic senate. Before starting his academic career, Gianfranco worked for five years at the Bank of Italy, as
senior financial analyst in the Banking Supervision Department. He was
consultant for many central banks, governments and financial institutions
worldwide, including the International Monetary Fund and the World
Bank. His research interests include financial regulation, risk management,
banking in emerging economies and microfinance. He was Visiting
Professor in different universities in Argentina, Russia, Spain and the UK.
Valeria Venturelli  is Associate Professor of Banking and Finance at the
University of Modena and Reggio Emilia, where she teaches Financial
Markets and Institutions at both undergraduate and graduate levels. She
graduated in Economics from the University of Modena and Reggio
Emilia and received a PhD in Financial Markets and Institutions from the
Catholic University of Milan. She has been a visiting PhD student at
Universitat Pompeu Fabra (Spain). Her main research interests are the
economics of banking and other financial institutions and valuation methods. She is author of several articles in leading academic journals. She has
acted as a consultant to various public institutions and consulting firms.
She is a member of CEFIN (Center for Studies in Banking and Finance),
European Association of University Teachers in Banking and Finance,
AIDEA (Italian Academy of Management), ADEIMF (Associazione dei
Docenti di Economia degli Intermediari e dei Mercato Finanziari e Finanza
d’impresa) and Softech-ICT.
P. Vezzani  is a Full Professor in Banking and Finance at the Department
of Communication and Economics of the University of Modena and
Reggio Emilia, where she was previously Dean of the Faculty and Chair of
the Department. She graduated from the University of Modena and
obtained a PhD in Capital Markets and Financial Management from the
University of Bergamo. She was a visiting PhD student at the Graduate
School of Business Administration in the Finance Department of New York
University. She is a member of CEFIN (Center for Studies in Banking and
Finance), AIDEA (Italian Academy of Business Administration and

Management), ADEIMF (Italian Association of University Teachers in
Financial Intermediaries and Markets) and the European Association of
University Teachers in Banking and Finance. She is a member of scientific


  NOTES ON CONTRIBUTORS 
  

xxiii

committee of Banking and Financial Diploma of the Italian Banking
Association (ABI). She is member of the board of UniCredit. Research
topics include diversification strategies of banking groups, organizational
and business models, analysis of banks’ performance, intellectual capital
and customer complaining. She is author of several articles and books.
Magnus  Willesson is Senior Lecturer at Linnæus University, Växjö,
Sweden. He obtained his PhD from the University of Gothenburg,
Sweden. The teaching experience includes banking, financial institutions
and markets, strategic risk management and corporate finance. The
research emphasize how risk, efficiency and governance of actors in the
financial sector are affected by changing environments (such as technology, market changes, regulations or management requirements). It is published in international journals and book chapters covering subjects of
risk-taking and risk management in banks, banking efficiency, operational
risk in banks, the banks’ adoption of the Basel II and Basel III accords
and the cost efficiency and pricing of payments.
Jiawei  Zhang  is an undergraduate student at the School of Business
Administration, China University of Petroleum, Beijing. His majors are
Economics and Finance. He is involved in several projects and is interested in the research on banking and finance. Zhang is also active in
professional competitions. In January/February 2018, he went to NUS
Singapore for a visit stay and shared knowledge with peer students from
around the world.

List of Figures

Fig. 2.1
Fig. 2.2
Fig. 2.3
Fig. 2.4
Fig. 3.1
Fig. 3.2
Fig. 4.1
Fig. 5.1
Fig. 5.2
Fig. 5.3
Fig. 5.4
Fig. 5.5
Fig. 5.6
Fig. 6.1
Fig. 7.1

Process flows of RF. (Source: Adapted from Camerinelli 2014,
p. 17)15
Three alternative cases of a supplier’s financing of trade credit.
(Source: Iacono et al. 2015, p. 291)
20
The supply chain C2c cycle. (Source: Based on Hofmann and
Kotzab 2006, p. x)
26
Extending RF into the pre-shipment phase. (Source: Based on
Liebl et al. 2016, p. 395)

27
Financial performance of D-SIBs in the Netherlands: Return
on Equity (ROE, left) and Core Equity Tier 1 capital (CET1,
right). (Source: Bankscope database)
41
Non-Performing Loans (NPLs) of D-SIBs in the Netherlands.
(Source: Bankscope database)
41
An overview of the disclosure quality index
73
ECB: tone
104
ECB: growth and ambiguity
104
ECB: anxiety, certainty, tentative, and discrepancy words
105
FED: tone
105
FED: growth and ambiguity
106
FED: anxiety, certainty, tentative, and discrepancy words
106
The steps of the complaint handling process in Italy. (Source:
Adapted from Bank of Italy 2014)
137
Banks’ assets vs board size after the financial crisis in European
countries. (Source: BoardEx and SNL data, compiled by the
authors)157

xxv

xxvi  

List of Figures

Fig. 7.2
Fig. 7.3
Fig. 7.4
Fig. 7.5
Fig. 7.6
Fig. 7.7
Fig. 7.8
Fig. 7.9
Fig. 7.10
Fig. 7.11
Fig. 7.12
Fig. 10.1
Fig. 10.2
Fig. 11.1
Fig. 11.2
Fig. 11.3
Fig. 11.4
Fig. 11.5
Fig. 11.6
Fig. 11.7
Fig. 12.1

Banks’ assets vs board size before the financial crisis in
European countries. (Source: BoardEx and SNL data,

compiled by the authors)
Board size vs return on equity after the financial crisis. (Source:
BoardEx and SNL data, compiled by the authors)
Board size vs return on equity before the financial crisis.
(Source: BoardEx and SNL data, compiled by the authors)
Board size and composition after the financial crisis in
European countries. (Source: BoardEx and SNL data,
compiled by the authors)
Board size and composition before the financial crisis in
European countries. (Source: BoardEx and SNL data,
compiled by the authors)
Board composition and bank return on equity after the
financial crisis in European countries. (Source: BoardEx and
SNL data, compiled by the authors)
Board composition and bank return on equity before the
financial crisis in European countries. (Source: BoardEx and
SNL data, compiled by the authors)
Bank board size and board NED turnover after the financial
crisis in European countries. (Source: BoardEx and SNL data,
compiled by the authors)
Bank board size and board NED turnover before the financial
crisis in European countries. (Source: BoardEx and SNL data,
compiled by the authors)
Bank board turnover in terms of NED and ROE after the
financial crisis in European countries. (Source: BoardEx and
SNL data, compiled by the authors)
Bank board turnover in terms of NED and ROE before the
financial crisis in European countries. (Source: BoardEx and
SNL data, compiled by the authors)
Distribution of ESG scores. Brexit event

Distribution of ESG scores. Lehman Brothers bankruptcy
Evolution of the net interest margins (NIM) of Chinese
commercial banks
Evolution of the HHI of China’s banking industry
Evaluation of the size of Chinese commercial banks
Evolution of the inefficiency of Chinese commercial banks
Evolution of risk aversion in Chinese commercial banks
Evolution of Liquid_Risk in Chinese commercial banks
Evolution of the credit risks of Chinese commercial banks
U-shaped relationship between risk and return

157
159
160
167
167
168
169
174
175
176
177
230
231
240
244
245
246
247
247

248
258


  List of Figures 
  

Fig. 12.2 Family firms’ risk-return relationship in the presence of relevant
investment fund (institutional investors) ownership when
profitability falls below the target
Fig. 12.3 Family firms’ risk-return relationship in the presence of relevant
bank (institutional investors) ownership when profitability falls
below the target
Fig. 12.4 Family firms’ risk-return relationship in the presence of relevant
bank ownership and investment funds when profitability is
above the target
Fig. 14.1 The EBITDA binomial tree
Fig. 14.2 Distribution of the stochastic variable (EBITDA-NFP/4)
Fig. 18.1 The structure of Chinese shadow banking (end of 2016).
(Source: Moody’s Investment Service)
Fig. 18.2 The types of assets and institutions involved in the creation of
WMPs. (Source: Compiled by the author based on Elliot et al.
(2015), Sheng and Soon (2016))
Fig. 18.3 The role of trust companies in the banking activity in China.
(Source: Compiled by the author based on based on the
literature description)
Fig. 19.1 Scatterplot of the three groups of banks. Variables: number of
employees and number of branches. (Source: Compiled by the
authors using the Bloomberg database)

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262
263
318
323
416
417
418
434