Financial Systems, Markets and Institutional Changes (eBook)

Giusy Chesini, University of Verona, Italy Josanco Floreani, University of Udine, Italy Elisa Giaretta, University of Verona, Italy Elisabetta Gualandri, University of Modena and Reggio Emilia, Italy René W.H. van der Linden, In Holland University of Applied Sciences, the Netherlands Stefano Miani, University of Udine, Italy Pierluigi Morelli, Italian Bank Association, Italy Andrea Paltrinieri, University of Verona, Italy Flavio Pichler, University of Verona, Italy Giovanni B. Pittaluga, Genoa University, Italy Maurizio Polato, University of Venice, Italy Pablo San Martín, Universidad Católica de la Santísima Concepción, Chile Paolo Saona, Saint Louis University's Madrid Campus, Spain Elena Seghezza, Genoa University, Italy Eleuterio Vallelado, University of Valladolid, Spain Valeria Venturelli, University of Modena and Reggio Emilia, Italy

Cover 1
Title 4
Copyright 5
Contents 6
List of Figures 10
List of Tables 11
Preface 13
Notes on Contributors 14
1 Institutional Change and the Design of Financial Systems Ted Lindblom, Stefan Sjögren and Magnus Willesson 19
2 The Road to a Viable Euro Zone and the Preconditions for Becoming a More Optimal Currency Region 27
2.1 Introduction 27
2.2 The rationale of the euro area from different perspectives 30
2.3 Preconditions for fulfilling the role of a monetary union 32
2.4 Preconditions for becoming an optimum currency area 37
2.5 Flaws of the EMU design and misdiagnosis of the euro crisis 40
2.6 Five pillars for a viable monetary union in the euro area 43
2.7 Structural reforms and the controversy between growth and austerity 44
2.8 From a fiscal compact to a fiscal union 47
2.9 A permanent rescue fund as a fiscal backstop 49
2.10 The European banking union 50
2.11 The ECB as a lender of last resort 53
2.12 Concluding remarks and recommendations 55
3 Gross Imbalances, Liquidity Shortage and the Role of the Federal Reserve 61
3.1 Introduction 61
3.2 Demand for US dollar swap lines 62
3.3 The supply of swap lines from the Fed 66
3.4 A discussion of the results 71
3.5 Conclusions 73
4 Firm-based and Institutional-based Determinants of the Bank Debt Maturity: New Evidence for Developed Countries 79
4.1 Introduction 79
4.2 Determinants of the maturity of bank borrowing 81
4.3 Data and variables 87
4.4 Results 90
4.5 Conclusions 92
5 The Financing of Italian Firms and the Credit Crunch: Findings and Exit Strategies 98
5.1 Introduction 98
5.2 The evolution of financial systems and the financial structure of non-financial companies in Europe 99
5.3 The crisis and the credit market in the euro area 104
5.4 Italian firms: financial constraints and the credit crunch 107
5.5 The exit strategies 114
5.6 Conclusions and recommendations 120
6 Does the Team Manager Earn More than His Coached Players? Analysis of the Earnings of Italian Asset Management Companies, and their Portfolio Companies, in the Field of Private Equity 128
6.1 Introduction 128
6.2 Literature review 129
6.3 Research hypotheses 134
6.4 Data description and methodology 135
6.4.1 Data description 135
6.4.2 Methodology 137
6.5 Results 139
6.6 Conclusions 144
6.6.1 Discussion and implications 144
6.6.2 Limitations of the research and directions for future analyses 146
7 Does ‘Political Bias’ Undermine the Korea Investment Corporation? 150
7.1 Introduction 150
7.2 A brief literature review on SWFs’ investment strategies 154
7.3 The Korea Investment Corporation’s framework 155
7.4 Data and methodology 158
7.5 The KIC’s investment strategies 160
7.5.1 The analysis of benchmark and strategic asset allocation 160
7.5.2 The analysis of geographical asset allocation 163
7.5.3 The ‘internal political bias’ analysis 164
7.6 Conclusion 166
8 Regulating High-frequency Trading: An Examination of European, US and Australian Equity Market Structures 170
8.1 Introduction 170
8.2 Literature review 172
8.3 Market factors contributing to the rise of high-frequency trading (HFT) 174
8.4 Main risks and proposed policy measures to mitigate them 179
8.5 Regulatory measures around the world: the state of the art 184
8.5.1 Supranational level organizations 185
8.5.2 European directives 188
8.5.3 US regulation 190
8.5.4 Australian regulation 191
8.5.5 Other regional regulation in Europe 192
8.5.6 A regulatory comparison concerning different market structures 196
8.6 Conclusions 201
9 Islamic and Conventional Exchanges: A Performance Analysis and Governance Perspectives 206
9.1 Introduction 206
9.2 Literature review and theoretical framework 208
9.3 Description of the sample 211
9.4 Data and methodology 215
9.5 Main results 218
9.5.1 Descriptive statistics 218
9.5.2 Analysis of variance and differences in means 222
9.5.3 Regression results 224
9.6 Strategic implications 226
9.7 Conclusion 229
Index 235