Lending, Investments and the Financial Crisis (eBook)

Elena Beccalli is Full Professor of Banking and Finance at Università Cattolica del Sacro Cuore, Italy, where she is the Dean of the School of Banking, Finance and Insurance. She is visiting Senior Fellow in Accounting at the London School of Economics and Political Science, UK, where she is a Research Associate at the Centre for Analysis of Risk and Regulation. Elena Beccalli is the author of books and articles in academic national and international journals in the area of economics of financial institutions.Federica Poli is Associate Professor of Banking and Finance at Università Cattolica del Sacro Cuore, Italy, where she is the Director of the Undergraduate degree in Service Management, and Director of the MA in International Trade Management. She is the author of publications in national and international academic journals and books in the area of bank management and financial intermediation.

Cover 1
Title 4
Copyright 5
Contents 6
List of Figures 9
List of Tables 11
Preface and Acknowledgements 13
Notes on Contributors 17
1 How Difficult Is It to Raise Money in Turbulent Times? 22
1.1 Introduction 22
1.2 Review of literature 23
1.3 Sample characteristics 26
1.4 The cost of bonds at issuance 29
1.5 Conclusions 39
2 The ‘Wisdom of the Crowd’ as an Antidote to the Credit Crunch: A Preliminary Analysis of Crowdfunding 43
2.1 Introduction: research approach and research questions 43
2.2 Crowdfunding defined: from policy orientations to academic literature 44
2.3 Different kinds of crowdfunding and some data about crowdfunding market 48
2.4 Crowdfunding drivers 51
2.5 Crowdfunding Attractiveness Index 52
2.6 Crowdfunding Attractiveness Index in the Euro Area 60
2.7 Summary and concluding remarks 67
3 Financing Firms’ Networks: The Italian Case 73
3.1 Introduction 73
3.2 Literature review 75
3.3 The Italian context 81
3.4 Hypotheses development section 83
3.5 Research method and sample description 84
3.6 Results 90
3.7 Conclusions 94
4 The Role of Loan Dynamics and Structure for CEE Economic Growth 99
4.1 Introduction 99
4.2 The role of credit and its structure for economic growth 100
4.3 Role and factors influencing credit for SMEs 103
4.4 Loan dynamics and structure in CEE in the pre- and post-crisis period 107
4.5 Empirical analysis: the regression model 112
4.6 Empirical analysis: panel data model 117
4.7 Conclusions 121
5 China’s Shadow Banking System and Its Lurking Credit Crunch: Causes and Policy Options 125
5.1 Introduction 125
5.2 China’s debt concerns and subsequent policy responses 128
5.3 The nature of China’s shadow banking and a comparison with its Western peers 132
5.4 The rationale behind the rapid expansion of China’s shadow banking 136
5.5 The size and scope of China’s shadow banking system 138
5.6 Reasons for and against a potential crisis in the making 142
5.7 Preventive and remedial policy measures to tackle shadow banking risks 144
5.8 Concluding remarks and recommendations 149
6 An Index of Bank Liquidity Creation: An Application to the Banking Systems of the Eurozone and the Liquidity Policy of the ECB during the Euro Crisis 155
6.1 Introduction 155
6.2 The theoretical framework 157
6.3 The trend of the liquidity needs of the banking systems of the Eurozone 160
6.4 The way ECB faced banks’ liquidity needs in the recent financial crises 167
6.5 Conclusions 172
7 The Performance of Listed European Innovative Firms 178
7.1 Introduction 178
7.2 Literature review 180
7.3 Sample and methodology 182
7.4 Results 189
7.5 Conclusions 198
8 Investment Strategies of Institutional Investors: An International Comparison of Sovereign Pension and Social Security Reserve Funds 203
8.1 Introduction 203
8.2 Literature review and hypothesis development 206
8.3 Data and methodology 209
8.4 Discussion of findings 213
8.5 Conclusions and policy recommendations 222
Index 229