Emerald | Qualitative Research in Financial Markets | Table of Contents

An Assessment of Liquidity Policies with Respect to Islamic and Conventional Banks: A Case Study of Indonesia

literatinetwork@emeraldinsight.com (RADITYA SUKMANA, MUHAMAD KHOLID) — Fri, 02 Aug 2013 00:00:00 +0100

Abstract

Purpose - this paper aims to describe, compare and analyze liquidity policies, particularly reserve requirements, to Islamic as well as conventional banks by central bank of IndonesiaDesign/methodology/approach - This paper provides some critical assessments on the policy by central bank to both Islamic and conventional bank with regard to the reserve requirement applied in the Indonesian banking system. The analysis is based on whether the both policy (to Islamic and conventional) provide fairness to the banks as well as whether those policies support the real sector. In addition, the current global practice is also briefly described as a justification of the important and relevance of the current study.Findings - we find out that the policy imposed to the Islamic banks is designed to boost the real sector as compared to that of conventional banks. For the policy to Islamic banks, it appreciates the banks which have been doing well on their main role as financial intermediaries and "punish" them when they fail to do so. This policy could not be found in the conventional banksPractical implications - we argue that the current approach used for Islamic banks can also be adopted and imposed to conventional banks. It leads to more stable financial system since it supports the real sector.Originality/value - this paper is the first paper which analyze the central banks’ policies to the banks (Islamic as well as conventional banks) in the relation to their role of financial intermediaries

Customer Satisfaction Management in Italian Banks

Fri, 02 Aug 2013 00:00:00 +0100

Abstract

Purpose - This paper presents the results of a survey that aimed to analyse the state of organisational and operative evolution of the functions and activities overseeing customer satisfaction in Italian banks.Design/methodology/approach - The research was conducted by questionnaire, to which 92 banks responded, representative of 77% of the total assets of the Italian banking system.Findings - The analysis of the results allow us to highlight the current approaches aimed at managing customer satisfaction, as well as the extent of integration between this and other management processes within the banks surveyed. We found that in these banks customer satisfaction is no longer a staff activity but increasingly a line activity, it involves the responsibility of top management and is a key indicator in staff incentive schemes.Originality/value - The research aims to contribute to the literature on customer satisfaction on the one hand, by verifying if and how banks measure and manage some of the customer satisfaction cause-effect relationships investigated by studies on the subject and, on the other hand, by focusing attention on organisation and internal processes aimed to support the assessment and improvement of customer satisfaction.

CEO SOCIAL STATUS AND ACQUISITIVENESS

Tue, 21 May 2013 00:00:00 +0100

Abstract

Purpose - The paper examines whether and under what circumstances social status of Chief Executives can be associated with corporate financial decisions, in particular via risk aversion or risk loving to the extent of mergers and acquisitions. Design/methodology/approach - we use mixed methods, drawing metrics of social status (acquired and ascribed) from anthropological and sociological research, applying these, and then using panel econometrics to check the statistical importance of the uncovered relationshipsFindings - we find in the paper that it is possible, for FTSE companies, to successfully measure and apply measures of social status from public records; we find strong evidence of a negative relationship between CEO ascribed and achieved social status and his or her acquisitiveness. However, the influence of achieved status appears to be more consistent and significant than that of the ascribed status, indicating its dominant role in determining overall attained status.Research limitations/implications - the research is limited in its data coverage, to FTSE members. However, it does show that it is possible to take useful and meaningful concepts from areas quite removed from traditional finance and to incorporate these into a traditional finance methodology Practical implications - The paper has practical implications for both aspirant and existing corporate officers and for investors. Originality/value - This research bridges a gap that has heretofore only been very sparsely mapped, and provides suggested routes for further research

Unobservable Service Quality and Moral Hazard: The Case of Impartial Business Valuations

literatinetwork@emeraldinsight.com (Joerg Prokop) — Fri, 02 Aug 2013 00:00:00 +0100

Abstract

Purpose - The purpose of this paper is to discuss agency relationships occurring in an impartial business valuation setting. In particular, it shows how monitoring and sanctioning mechanisms, reputational concerns, and competition may affect the quality of valuation services rendered.Design/methodology/approach - The paper reviews findings from auditing research and from the economic theory on credence goods, and applies them to an impartial business valuation setting.Findings - Impartial valuation experts face incentives to either overwork, or underwork and overcharge their client. Which type of moral hazard is more likely to occur depends on the degree of competition among the agents. While market concentration gives rise to overworking, competition promotes underworking and overcharging. Due to regulatory differences, this effect is more pronounced in the valuation services market than in the auditing industry.Research limitations/implications - The results imply that a client may be able to infer how to set up an effective monitoring and sanctioning system from the degree of competition among the impartial valuation experts. Future research should empirically validate the theoretical findings, and explore the relationship between service quality and internal governance structures of business valuation firms.Practical implications - The results underline the necessity of an effective valuation quality assurance system set up by the client. They are thus relevant for clients, but also for regulatory bodies seeking to ensure the integrity of the valuation services market, and for valuation service providers striving to improve their corporate governance system.Originality/value - The paper offers a new perspective on the reliability of business values determined by impartial experts. It emphasises the potential influence of the experts’ competitive environment on service quality, and it shows how to design an effective valuation quality assurance system.

Efficiency and Productivity of Banking sector – A critical analysis of literature and design of conceptual model

Fri, 02 Aug 2013 00:00:00 +0100

Abstract

Purpose - The purpose of this paper is to discuss a comprehensive literature survey of studies focusing on efficiency and productivity of banking sector using parametric and non parametric frontier techniquesDesign/methodology/approach - Critically reviewing 106 studies published across the world from 1994 to 2011, a conceptual framework is developed for the studies assessing the efficiency and productivity of banking industry using non parametric DEA frontier approach.Findings - Parametric and non parametric, both the frontier approaches is gaining an edge over the traditional financial performance measures. In Non parametric approach, Data Envelopment analysis (DEA) is widely applied to measure bank’s efficiency and productivity. Studies conducted in developed countries such as US, UK and Europe are now emerging with the new concepts of banking efficiency.Research limitations/implications - These findings are based only on the critical review of 106 studies. Research implications - This study suggests the direction for future research and identifies the gap in existing literature with the development of a conceptual model. Originality/value - This study is original in nature and included literature published in recent issues of 2011.