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PurposeSince the 1980s, the global financial system has faced several crises that have led regulators to consider new conjectural and structural problems. These crises (new technology bubbles, the sub‐prime crisis …) have led economists and financial analysts to the following conclusions. First of all, systemic risk has increased during the last 30 years, which had led regulators to devise rules to evaluate information more efficiently. Second, the recent collapse of stock markets despite the national rescue measures shows the importance of preventative procedures. The third point is that aggressive capitalism has demonstrated its limits. The aim of this paper is to show that regulation is a necessary but not sufficient condition to ensure the efficiency of banking institutions, financial markets and the management of companies.Design/methodology/approachThrough the analysis of the Swiss banking sector, the paper provides an insight for banks to satisfy social pressure on more ethical behavior. This case could be an example for another functioning for financial institutions.FindingsBy refocusing on their core business, banking institutions will be capable of realizing profit and creating value for the community.Practical implicationsThe arguments discussed in this paper could be of interest both for professionals and academics willing to solve the antagonism between profit and ethics: profit can be compatible with social value added.Originality/valueBanking and finance is not "an ethics free zone". By changing their behavior, banks can improve their credibility on the market and renew the confidence towards clients.

Banking liquidity regulation has transformed banks' business model and hampered entrepreneurial finance by reducing credit distribution. If capitalization and liquidity ratio have induced more stability, they have reduced the margin and profitability of European financial institutions. This fact has influenced the financing of enterprises in general and small and medium sized enterprises in particular. Hence, firms were obliged to find other sources of financing to undertake their projects and have contributed to transforming the business model of banking institutions.

The China business model in context--setting the scene / Elisabeth Paulet, Chris Rowley -- Guanxi culture: how it affects the business model of Chinese firms -- Zhang Chi, Hong Seock-Jin -- Interpreting China's model for business : roles of corruption, favoritism, reliability, and responsibility / Duane Windsor -- The equity gap amongst technology-based small firms : practices and challenges for government-backed venture capital in China / Javed G. Hussain -- Assessing the impact of the new medical reform on China's pharmaceutical supply chain : the case of essential medicines distribution in Yuping, Luochan, and Minhang regions / Sam Dzever -- Exploring manager-employee-heterophily (MEH) in US-owned and managed plants in Taiwan / Kirk Chang -- Folk lending and P2P : monitoring maturation in Chinese financial contracting / Travis Selmier II -- A new FDI framework in the Chinese services industry / Ivana Beveridge -- China versus India : emerging giants in the world economy / Nirjhar Nigam -- Implications and what can we learn? / Elisabeth Paulet, Chris Rowley

The development of European crowdfunding is directly connected to the prevalent structure of the banking system in the different member states.

PurposeStrategic decisions taken during financial instability periods are directly influenced by the competitive environment in which actors are evolving. In the highly financialized context in which they proceed, firms are moving in a half light. The rational expectations hypothesis no longer stands relevant when the information made available to actors is incomplete. The aim of this paper is to discuss how in such a situation, firms and banks interact using uncertain profit expectations, and then feed financial crises.Design/methodology/approachThe paper pinpoints the key role played by a competitive environment on firms' and banks' strategic governance, by discussing a cognitive or experience linked expectations model. It then focuses on the free play of behavior in these enhanced competitive spaces.FindingsOnce admitted the irrelevancy of the rational expectations hypothesis, an optimal way of characterizing expectations under uncertainty is proposed. This solution helps to illustrate how the free play of banks and firms in today's enhanced competitive spaces generate systematic escalations on the markets.Originality/valueFinancial governance would gain more from being steered towards a more explicit consideration of speculative behaviors: the cognitive or experience linked expectations model proposed in this paper is a first attempt to discuss this question.

PurposeThe aim of this paper is to show that there are other options for a firm (or a bank) than just following the mainstream logic of maximizing financial profits. This is the case of the so‐called "social banks", which appeared in the mid‐1980s. Unlike the "financial green‐washing" of traditional banks, social banks have shown in their everyday practice that a bank can still be a competitive institution whilst committing wholeheartedly to the concept of sustainable development.Design/methodology/approachThe analysis compares social banks to traditional universal banks at two levels: analysis of what they say, namely by looking at their annual report; and analysis of what they do, namely by looking at their activities as reflected in their balance sheet.FindingsConcerning traditional banks, there is a major gap between what they say and what they do, whereas social banks are much more consistent in this regard. This is simply because social banks have put in place a different organization and different management structures and, overall, because they apply a different business model.Originality/valueAll banks are not the same. Beyond the "declarative ethics", the methodology used in this paper helps to make the difference among them by using concrete evidence for measuring their "social added value".

PurposeThis paper aims to analyze existing corporate governance rules which aim to regulate and control the following type of problems: to restore confidence in the financial markets, to reformulate the existing corporate governance systems and mechanisms that have been inadequate, and, finally, to rethink the relationship between ethics and economy. It also aims to identify the factors determining the corporate governance systems and mechanisms in a global economy.Design/methodology/approachThe paper reports the results of a comparative analysis between different corporate governance systems and mechanisms. In addition, in order to explore the role of institutional determinants in attracting foreign direct investment (FDI) flows, this study considers variables such as an index of shareholder protection, openness to FDI and the interaction between the two above mentioned variables.FindingsThis analysis confirms the economic theory that less open countries are characterized by stronger ownership restrictions and a weak corporate governance mechanism. Conversely, open market and investment regimes are particularly powerful instruments to attract investment in general and FDI in particular.Originality/valueThis study provides a survey of the main system and mechanisms of corporate governance all supported by a survey of recent developments regarding the empirical analysis on the role of institutional determinants in attracting FDI flows.

governance and financial reporting are changing. Managing, governing and controlling have become familiar words, but their real importance for the sustainability of our societies has been forgotten. The latest amendment to the accounting standards adopted in 2002 by the European Parliament will not only result in the valuation of assets at their historical cost, but at their "fair value". It will also aim for greater transparency for better governance. This contribution aims to explore the correlation between these two factors. After briefly presenting the different forms of governance not completely disconnected from the banking systems in the countries concerned (Part 1), the changes in terminology concerning accounting and financial communication (Part 2) will be discussed. We will try to demonstrate that they report on the change of vision of corporate governance in general (Part 3) and its impact on the organisation of real factors in the company and on the value distribution key among the different stakeholders in the company's business (part 4). ; Corporate governance and financial information are at the core of the recent debate of the management of enterprises. The new IAS rules aim to greater transparency which will induce a more efficient governance for firms. The objective of this paper is then to study the correlation between these two concepts. After having briefly presented the different forms of corporate governance in correlation with the banking systems existing in the given country (section 1), the new terminology of the financial communication will be discussed. The final aim is then to exhibit that these changes are conformed to the actual evolution of corporate governance and try to better take into account the fair value (or creation of value) for companies. ; governance and financial reporting are changing. Managing, governing and controlling have become familiar words, but their real importance for the sustainability of our societies has been forgotten. The latest amendment to the ...