Investment Banks Research Articles

Multilateral development banks investment behaviour in water and sanitation: Findings and lessons from 60 years of investment projects in Africa and Asia

Abstract Multilateral development banks (MDBs) play a pivotal role in financing water and sanitation infrastructure projects and thus have a major impact on the development of basic services. Although information about the MDBs' investments is publicly available, it is dispersed and not easily comparable. A comprehensive compilation of MDBs' water and sanitation investments has long been lacking. To address this gap, we assess water and sanitation financing by the three MDBs most relevant to Africa and Asia between 1960 and 2020: the World Bank, the African Development Bank, and the Asian Development Bank. We compile a new dataset by drawing on 3,639 water and sanitation projects and assess territorial trends, technology choices, distribution of financial burdens, and reforms to institutional arrangements. We find that MDBs' investments align with changing patterns of urbanization and increasingly finance sanitation infrastructures including non-sewered technologies. However, our results also suggest that institutional reforms have addressed utility efficiency through investment in equipment and skills rather than through increased commercialization and private sector participation. The leverage effect of MDB investment on private financing is negligible, whereas co-financing from local governments dominates.

Credit Risks and Capital Risks and their impact on Banking Liquidity, Applied Research in al-Mansour Investment Bank and the Iraqi Investment Bank

The research aims to shed light on the variables of the study, credit risks and capital risks, and provide an introductory framework for them and the theoretical relationship with the dependent variable on banking liquidity, and then measure those risks on commercial banks (Al-Mansour Investment Bank and the Iraqi Investment Bank) and then find statistical relationships between the variables The independent and dependent variable and then using the statistical analysis program (SPSSv.26) to find the effect relationship of credit risk and capital risk on bank liquidity. One of the most important conclusions reached by the researchers is that there is a relationship between credit risks when they rise on bank liquidity, and this is explained by the value of the correlation between credit risks and bank liquidity in commercial banks, the study sample (.957**) at a significant level (0.01). There is a relationship. between capital risks when they rise on bank liquidity, as the value of the correlation between capital risks and bank liquidity in the study sample commercial banks was (-.873**) at a significant level (0.01).

The Role of Financial Inclusion in the Stability of Islamic Banks

Purpose: The purpose of this research is studying the role of financial inclusion on financial stability in the Islamic banks, Highlighting the role of Islamic law in promoting financial and banking inclusion. Theoretical framework: Introduce financial inclusion and definition of financial inclusion, statement of financial stability, and the role of financial inclusion in the stability of Islamic banks, in which the concept of financial inclusion and its dimensions was reviewed. Methodology: The study was based on a qualitative research method, as it collected information from books, reports, journals, newspapers, and websites. The study adopted the descriptive analytical approach to study and analyze the various aspects of financial inclusion, its dimensions in Islamic banks, and its relationship in financial stability. Findings: The relationship between financial stability and financial inclusion in Islamic banks is a direct relationship and financial stability cannot be reached without achieving financial inclusion and vice versa. The financial sectors must develop two sectors in parallel to achieve the desired economic development. Research, Practical & Social implications: Central banks, Islamic banks (clients /staff), financial institutions, and small clients are the main beneficiaries of these ideas. Originality/value: This study contributes to determining the role of financial inclusion in financial stability, using Islamic banks, which is to determine the effect of applying financial inclusion on the financial investment of Islamic banks. The research is based on a lack of studies on research variables.

Development of Infrastructure to Support the National Technological Initiative: The Case of the Russian Federation

The modern world lives in a digital transformation. Many researchers consider this period to be a new technological paradigm or a digital economy. The widespread digitalisation of production and management processes not only affects the processes of global globalization, but also contributes to the rapid growth of the economy, enhancing living standards. While the global economy identifies some common characteristics of the development of the digital economy, there is no consistent methodological approach. The Russian Federation in the world scores to evaluate the development of the digital economy, in general, is in the group of developing countries. Therefore, at the state level, the digital transformation is recognized as a strategic priority for Russia's developers. Since 2014, the development strategy of Russia has been the National Technology Initiative (NTI), a long-term program to create new markets and lay the groundwork for Russia's technological leadership by 2035. Its first steps served as a foundation for the adoption of the national project “Digital Economy of the Russian Federation”. This study analyses the implementation of joint government and corporate efforts in this direction. It was revealed that the main NTI operators are both state institutions (state investment bank “Bank VEB”, “Innovation Promotion Fund”), and business partially government-owned communities – Agency for Strategic Initiatives (ASI), Russian Venture Company (RVC). Based on the analysis of NTI roadmaps and events, a model of institutions to support the digital economy in Russia has been built. The conclusion concerns the overall support of the State during the construction of an ecosystem of technological entrepreneurship. At the same time, there is a certain differentiation of the NTI infrastructure, tending towards large subjects of the Russian Federation with a high level of Information and Communication Technologies (ICT) development - Moscow and St. Petersburg.

PRAGMATIC ANALYSIS OF THE LEGAL FRAMEWORK ON MERGERS AND ACQUISITIONS IN INDIA UNDER THE COMPANIES ACT,2013

The purpose of this paper is to analyze, illustrate, and discuss Indian procedural laws governing mergers and acquisitions (M&A). The goal is to provide institutions and directors involved in deals involving foreign investment and accession with useful policy guidelines. The purpose of this article is to investigate the legal framework of the Companies Act of 2013's junction and accession clauses. Deals with advanced valuations have been delayed or failed due to a lack of fiscal structure, the erratic behavior of government officers, and interference of the politicians. Additionally, the recently elected governing authorities has attempted to encourage additional investment from other progressive and upcoming requests by simplifying the investment regulations and providing duty breaks. These are the most significant compliances. Eventually, the change would support rule makers, M&A counsel, legal advisers, investment bankers, private firms, transnational funds planning to invest in Indian commerce, and legal advisers.

Access to Finance for Entrepreneurs in MENA Region

The paper analyzes different financial investment mechanisms on offer for entrepreneurs of MENA regions. Whereby, a literature review-based study was carried out, while collecting resources from various online resources, to give a context of different financial mechanism like Angel investment, Micro financing and Islamic Banking. After giving a thorough analysis of different financial methods, recommendations were provided to further improve these methods to make it feasible for entrepreneurs to excel.

Estimation of bargaining effect in the decision of monetary compensation of executive in investment bank: Evidence from China.

Though numerous empirical and theoretical studies have been conducted on the determinants and effects of executive compensation, empirical evidence regarding the bargaining effect on the monetary compensation decisions of executives, especially in a large emerging economy such as China, remains scarce. In this study, a two-tier stochastic frontier and endogenous correction model was developed to quantitatively estimate the bargaining effect on the monetary compensation decisions of investment bank executives. Our study is the first to provide comprehensive empirical evidence that bargaining between investment banks and executives in China significantly affects the compensation decisions of executives. In the bargaining process, investment banks are more proficient than executives, and the comprehensive bargaining effect tends to lower the negotiated compensation of executives. The bargaining effect exhibited obvious heterogeneity in the characteristics of executives and investment banks. When these characteristics tend to augment the bargaining power of executives, the negotiated compensation exhibits a limited decrease; when these characteristics augment the bargaining power of investment banks, the negotiated compensation decreases substantially. Our results provide deep insight into factors that determine executive compensation and help compensation designers of investment banks better understand and design executive pay packages.

CRITICAL ANALYSIS OF MERGERS AND ACQUISITIONS WITH REFERENCE TO RECENT TRENDS

Mergers and Acquisitions (M&A) are increasingly being used all over the world to improve the competitiveness of companies by gaining more market share, widening the portfolio to reduce business risk, entering new markets and geographies, and capitalizing on economies of scale, etc. In India, too, they have become a matter of everyday occurrence. They are the subject of interest counting for different individuals, such as business executives who are looking for potential merger partners, investment bankers who manage mergers, lawyers who advise the parties, regulators concerned with stock market operations and growing business sectors in the economy, and researchers who want to understand these concepts better. It is also said that a lot of mergers are simply acquisitions. One company purchases another and integrates it into its own business model. Many statistics on mergers are presented for the combined mergers and acquisitions (M&A) that are occurring as a result of this misuse of the term merger, because of which mergers and acquisitions can be treated as the same even though they are different from each other. The trend of merger and acquisition in India began in 1988 when Swaraj Paul attempted a hostile takeover of DCM Ltd. and Escorts Ltd.[1] at a time when the only mergers in India were friendly family mergers or friendly deals with pre-negotiated terms. These mergers were few due to the unfavourable provisions of the Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act, 1969).

FINRA's Proposal to Amend its Arbitration Rules

In the wake of a New Jersey law firm's investigation into a claim that FINRA agreed to Wells Fargo's moves in gaming arbitrator selection in a dispute over the bank's investment services, the industry self‐regulatory agency submitted proposed regulations revising arbitrator selection for securities disputes to the U.S. Securities and Exchange Commission.

The Possibility of Applying Agile Internal Auditing in the Iraqi Economic Units

The research problem is that the traditional methods of internal auditing are somewhat heavy with long and rigid procedures for the members of the audit process team, especially in light of the current developments that are reflected in the business environment and internal audit reports, so it is necessary to reconsider the traditional internal audit work method and assess the extent of its development by agile methods to reduce the time of the audit process on the activities and elements that add value and direct the effort and time to the activities and elements that add value to the work of the economic unit and the report of the internal auditor.
 The research aims to study the possibility of applying agile internal auditing in the Iraqi economic units and to achieve the goal of the research. The researchers made a checklist to test the research hypothesis, which states (there are no applications of lean internal auditing methods in the local environment). For (6) private banks listed in the Iraq Stock Exchange, which number (69) banks, after reviewing the periodic reports prepared by the Central Bank of Iraq.
 The researchers concluded that the banks of the research sample applied to the graceful internal audit in the Iraqi economic units is the Ashur Bank, as it obtained the highest arithmetic mean reached (2.55) and the highest relative importance as it amounted to (85.0%) and the second place the Iraqi Investment Bank got the arithmetic mean (2.48) and importance Relative (82.7%). In third place, the Khaleej Commercial Bank got an arithmetic mean (2.39) and relative importance (79.7%). In fourth place, the Trans-Iraq Bank got an arithmetic mean (2.28) and relative importance (76%). In fifth place, the Iraqi Islamic Bank got on the arithmetic mean (2.24) and relative importance (74.7%).
 
 Paper type: Research Paper

Commercial Banks' Contribution to Expanded Investment and Credit in Jordan

Purpose: The study aimed to investigate the role of commercial banks in increasing investment and credit facilities in Jordan.
 
 Theoretical framework: The theoretical literature in this study sheds a light on the role of the commercial banks in in increasing investment and credit facilities. It also sheds a light on the role of commercial banks in supporting economy.
 
 Design/methodology/approach: The researchers adopted a descriptive analytical and quantitative approaches. The study’s sample includes all the commercial banks in Jordan. The researcher collected data on commercial banks from reports issued by the Central Bank of Jordan. The sampled banks include: (Bank of Jordan, Arab Bank, Capital Bank and Etihad Bank). The data targets the period (2017-2020).
 
 Findings: The researcher found that there is an important role for Commercial banks in investment in general, due to an increasing the financial indicators of Commercial banks related to investment during the years (2017-2020). The study reported that the value of Commercial banks credit facilities increased significantly during .The comparison period (2017-2020)
 
 Research, Practical & Social implications: The present study provides information and review of literature for the ones interested in conducting studies about the impact of commercial banks on economic variables. It also provides the decision makers in the Jordanian Ministry of Finance with useful information for supporting and improving investment in Jordan.
 
 Originality/value: The present study is significant because it is the first study that addresses the role of commercial banks in increasing investment and credit facilities in Jordan as far as the researcher knows.

European Super League: designing “new” football

Purpose The purpose of this study is to use design thinking principles to understand the failure of the ‘new’ European Super League, and also understand how it could be redesigned. Research methodology This case has been developed from secondary sources, including news reports, social media sites, annual reports and websites of the Union of European Football Associations and the European football clubs. This case was classroom-tested with post-graduate management students in a design thinking course in May 2021 at an Indian business school, S.P. Jain Institute of Management & Research, in Mumbai, India. Case overview/synopsis In April 2021, a new football league – the European Super League, is announced as a breakaway rebel league, in direct competition with United European Footballers Association's Champions League. It is backed by the top 12 European clubs and officials in European football, besides the US investment bank, JP Morgan. The new league is touted as one intended to save football. It is, however, denounced by fans and shunned almost universally. The league, which has been planned for the past three and half years, faces collapse. Why did the European Super League fail? How could the founders design a new league? Complexity academic level This case could be used in an undergraduate or MBA classroom or an executive education programme in a design thinking course. It can also be used to teach marketing courses such as marketing strategy, new product development and consumer behaviour.

ON THE ACCURACY BE THE METRIC OF THE DENSITY ESTIMATION CONSTRUCTED BY DEPENDENT OBSERVATIONS

ON THE ACCURACY BE THE METRIC OF THE DENSITY ESTIMATION CONSTRUCTED BY DEPENDENT OBSERVATIONS

Risk and financial performance of investment banks in Kenya

This paper addresses the ascendancy of operational risk on performance of investment banks in Kenya.The study adopts a mixed methods research design. The population of the study was drawn from 16investment banks operating in Kenya. Secondary data for the study was collected from the annualfinancial statements of the investment banks for the years 2011 to 2019. Primary data was utilized from27 interviewees composed of managers of the investment banks. Both descriptive and inferentialanalysis methods were employed in the analysis. The regression results indicate that operational risksby investment banks in Kenya have a negative and significant effect on financial performance ofinvestment banks in Kenya. Being a less capital intensive entity, the investment banks in Kenya do nothave many operations to be managed. However, there are increases in fixed costs such as office space,employee benefits and legal fees. These costs cannot be managed without jeopardizing the businessoperations and causing more undesirable effects. As such, the only way to manage them is to offset theoperational cost by improving the business returns. However, the improvement of returns depends onother business factors. Therefore, the growth in operational costs coupled with decline in profitsexplains the negative and significant relationship between operational risk and financial performanceof investment banks in Kenya.

What can outliers teach us about entrepreneurial success?

PurposeStudies of unicorns and gazelles can offer detailed information about the process of enterprise development but are unrepresentative as examples of entrepreneurial success. In presenting a novel method for outlier analysis, this article combines insights from case studies of unusual organizations with explanatory frameworks that management scholars have applied to broader samples of firms, irrespective of their survival.Design/methodology/approachThe authors illustrate the approach to outlier analysis using a prominent case from economic history: the House of Rothschild, founded during the 18th century, which became the most famous investment bank in Europe. Following the iterative refinement of mechanisms using comparison data on Jewish enclave firms, this analysis sheds light on the sources of dissimilarity in outcomes between Rothschild and the comparison group.FindingsThe study results suggest that the House of Rothschild's longevity can be explained via the mechanisms of risk sequencing, intergenerational transfers and spatial brokerage. The authors show that these mechanisms are not idiosyncratic to one enterprise but instead generalize to other family firms.Originality/valueOutlier analysis encourages a rapprochement between case study and large-N research. The high failure rate of new organizations means that those yielding a large amount of information to researchers tend to be exceptional. By obtaining data on a comparison group of startups founded by similar entrepreneurs, analysts can probe the mechanisms of success identified for unicorns or gazelles.

The relationship between return on investment and Jordanian banks value

Bank stakeholders such as investors, creditors, and other stakeholders of a bank, expect full disclosure to evaluate banks’ financial statements. To achieve this goal, bank managers can increase the value of a bank by enhancing the return on their investments. This study examines the impact of financial performance on the market value of Jordanian public shareholding banks. The study model examines the effect of return on investment (ROI), debt ratio, dividend policy, and current ratio while controlling for bank size. Bank value is measured using the market value. The sample is Jordanian banks listed on the Amman Stock Exchange between 2005 and 2020. To investigate the link between the study variables, the random effect model, panel least squares approach, correlation analysis, and descriptive measures are used. The findings indicate that banks own 3.025 JD from current assets for each JD from current liabilities. In addition, the debt ratio is 38.4% from total assets. Adj R2 for the study model is 22.1%. The results show that profitability, leverage, and bank size significantly affect the value of Jordanian banks, while dividend policy and liquidity do not have a significant impact.

Do Smart Depositors Avoid Inefficient Bank Runs? An Experimental Study

ABSTRACT This paper investigates whether being smart makes depositors less prone to getting involved in a bank run. We conduct a series of experiments with students, modeling the a-la Diamond-Dybvig deposit market with liquidity shocks, changing macroeconomic conditions, and risk-based investment technologies. Our results suggest that smarter depositors – those having better academic achievements – choose the strategy of avoiding early withdrawals more frequently, adding to the evidence that higher financial literacy may prevent coordination failures in deposit markets. We also suggest that panic withdrawals are more probable in markets with poorer economic conditions, but depositors show weak sensitivity to bank investment risks.

Hierarchical tendencies, functional specializations, and (in)stability across European banking centers

Drawing on conceptual research exploring how evolving geographies of finance inform urban and regional change, we examine the size and functional scope of the presence of leading global banks across functional urban areas in Europe. Based on data for 100 major global banks, we find that their overall presence is proportional to (the square root of) the national gross domestic product. London and Luxembourg host far more banks than can be explained by their national gross domestic product, which can be traced back to their export of banking services. We also analyze the geographies of specialized banking services per city. Corporate and investment banking are mainly explained by national gross domestic product, with London emerging as the most prominent center. Private banking and securities services, in turn, are largely independent of national gross domestic product and rely on the importance of small and specialized economies such as Luxembourg and St Helier (Jersey). The stability of Europe’s banking centers is underpinned by their role as the national banking center and/or their specialization in international banking services, as well as manifested in specialized subnetworks of financial centers.

A Partnership Centered on Norm Adoption

Abstract This article investigates the institutional collaboration between the Asian Infrastructure Investment Bank (AIIB) and the European Bank of Reconstruction and Development (EBRD) on the Dushanbe-Uzbekistan Border Road Improvement Project in Tajikistan. It argues that AIIB’s adoption of the EBRD’s environmental and social safeguard norms and project management norms facilitates the provision of infrastructure-related public goods in Tajikistan in three ways. First, the harmonization between the governance norms of these two banks facilitates their cofinancing which fills the financing gap of the project. Second, the policy coherence enables the two institutions to implement environmental and social safeguard norms that the Tajikistan government is unable to fully practice. Third, it paves the way for the transfer of project management experience from the EBRD to AIIB. Through this learning process, AIIB is able to provide additional infrastructure-related public goods in Tajikistan by acting as an independent provider of project monitoring services.

Foreign Investment and Development StrategyforIndonesia's Banking Sector: Between Constitutional Supremacy and Economic Reality

Foreign Investment and Development StrategyforIndonesia's Banking Sector: Between Constitutional Supremacy and Economic Reality