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 Islamic Banking, Financial Exclusion, Mergers and Acquisitions, Risk Management, and IT in Banking The books focus on research and practice and include up to date and innovative studies that cover issues which impact banking systems globally More information about this series at http://www.palgrave.com/gp/series/14678 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) https://doi.org/10.1007/978-3-319-90294-4 Library of Congress Control Number: 2018944360 © The Editor(s) (if applicable) and The Author(s) 2018 This work is subject to copyright All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed The use of general descriptive names, registered names, trademarks, service marks, etc in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations Cover illustration: Pablo_K / Getty Images Cover design by Laura de Grasse Printed on acid-free paper This Palgrave Macmillan imprint is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland 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 1 Introduction   1 Myriam García-Olalla and Judith Clifton Part I Regulation   9 2 The Impact of Recent Regulatory Reform on the Use of Supply Chain Finance: The Case of Reverse Factoring  11 Viktor Elliot and Ted Lindblom 3 The Bank Resolution Framework in the European Union: Preliminary Evidence from Specialized and Regional Banks  31 Ewa Miklaszewska and Jan Pys 4 Market Risk Disclosure in Banks’ Balance Sheets and the Pillar Report: The Case of Italian Banks  53 Enzo Scannella 5 Central Banks’ Communication Strategies: Just Words?  91 Vincenzo Farina, Giuseppe Galloppo, and Daniele A Previati vii viii   Contents 6 Complaining in Consumer Credit: Evidence from the Italian Financial System 123 S Cosma, F Pancotto, and P Vezzani Part II Corporate Governance and Performance 149 7 Bank Boards in Europe: Trade-Offs in Size, Composition, and Turnover 151 Eleuterio Vallelado and Myriam García-Olalla 8 The 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 9 Bank Ownership and Firm-Level Performance: An Empirical Assessment of State-Owned Development Banks 197 Marco Frigerio and Daniela Vandone 10 Non-financial Rating and Socially Responsible Investment Reaction to Financial Turmoil 221 Helen Chiappini and Gianfranco A Vento 11 What Determines Interest Margins? The Case of Chinese Banks 239 Ming Qi and Jiawei Zhang Part III Firm Financing and Valuation 253 12 How Do Banks and Investment Funds Affect Family Risk-Taking? Evidence from the Financial Crisis 255 David Blanco-Alcántara, Jorge B Farinha, Mauricio Jara-Bertín, Ĩscar López-de-Foronda, and Marcos Santamaría-Mariscal  Contents     ix 13 Does 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 14 Earn-outs in Debt Restructuring Plans: Economics and Valuation 303 Josanco Floreani, Maurizio Polato, and Maurizio Massaro 15 Book 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 16 Assessing and Measuring Banking Culture 363 Beatriz Fernández Muñiz, José Manuel Montes Peón, and Camilo José Vázquez Ordás 17 A 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 18 Structure and Risks of the Chinese Shadow Banking System: The Next Challenge for the Global Economy? 409 Piotr Łasak 19 Analysis 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 ... 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... Business Finance & Accounting, Review of Financial Markets, International Journal of Auditing, European Journal of Finance, Journal of Banking Regulation, Research in International Business and. .. 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,