Assessing the introduction of anti-money laundering regulations on bank stock valuation

2019 ◽  
Vol 22 (1) ◽  
pp. 76-88 ◽  
Author(s):  
Henry Balani
Keyword(s):  
Money Laundering ◽  
Banking Sector ◽  
Negative Impact ◽  
Positive Impact ◽  
Statistical Significance ◽  
Abnormal Returns ◽  
Content Type ◽  
The Usa ◽  
Bank Stock ◽  
The Impact

Purpose This paper aims to analyze the impact of the introduction of anti-money laundering (AML) regulations on bank stock valuations in the USA. Regulations can have a negative impact on financial returns as a result of increased operational costs, potentially driving down stock valuations and loss of profitability. However, regulations can also have a positive impact on valuations because of greater oversight and increased investor confidence. Findings are useful for assessing the market impact of future regulations. Design/methodology/approach Event studies and cross-sectional regression analysis are used to determine the impact on bank stock valuations together with specific characteristics of bank size and geographic headquarter location of the bank for identified AML regulations. Hypothesis related to the impact of the introduction of AML regulations are empirically tested based on the statistical significance of cumulative abnormal returns of markets. Findings AML regulations introduced in 1998 had a positive impact on bank stock valuations, while the USA PATRIOT Act legislation of 2001 had a negative impact. These findings suggest that recent AML regulation is a cost compliance burden for banks, where the costs of operations outweigh the benefits of improved processes. Larger banks see a more negative impact on their bank stock valuations compared to smaller banks, suggesting the market perceives greater cost and less profit for larger banks. Results also show that the location of bank’s headquarters does not significantly impact bank stock valuations. Originality/value This paper specifically focuses on the impact of AML regulations on the US banking sector, providing investors, academics and regulators additional insight on the market dynamics of regulations. Identifying whether the introduction of regulations has a significant impact on a bank’s performance will provide both banks and regulators clarity as to the net benefits associated with the current and future AML legislation.

Employee beliefs regarding the impact of unconventional appearance on customers in Mexico and Turkey

2016 ◽  
Vol 38 (2) ◽  
pp. 163-181 ◽  
Author(s):  
Katherine Karl ◽  
Joy Van Eck Peluchette ◽  
Leda McIntyre Hall
Keyword(s):  
Service Quality ◽  
Negative Impact ◽  
Positive Impact ◽  
Service Industries ◽  
Future Research ◽  
Hair Color ◽  
Content Type ◽  
Customer Perceptions ◽  
The Usa ◽  
The Impact

Purpose – The increasing prevalence of unconventional appearance attributes (e.g. tattoos, piercings, unnatural hair color, alternative clothing) is a concern among employers as these appearance attributes are often viewed negatively. Because much of the existing employee appearance research has been conducted in the USA, the purpose of this paper is to examine employee beliefs regarding the impact of unconventional employee appearance on customer perceptions of service quality in Mexico and Turkey. The authors also examine the impact of gender, age, and position level. Design/methodology/approach – The sample consisted of 295 white collar employees in various service industries in Turkey and Mexico. Respondents reported how they thought eight employee appearance factors (tattoos, facial piercings, unconventional hair color, unconventional hair styles, sweat pants, clothing with rips or tears, clothing that bears midriffs, belly-buttons, or cleavage, and uniforms) would affect customer perceptions of service quality. Findings – Employees in both Mexico and Turkey indicated that uniforms would have a positive impact on customer perceptions of service quality and all seven unconventional employee appearance attributes would have a negative impact. Significant differences for country, gender, age, and position level were also found. Research limitations/implications – Future research including a more diverse group of countries and cultures is needed. Future research should also attempt to control for differences in type of organization, organizational culture, and job type. Practical implications – Alternative fashion and appearance styles may be trendy but there are risks in how these might be perceived by customers and by colleagues at work. Originality/value – This study examines employee beliefs regarding the impact of a variety of unconventional employee appearance attributes on customers’ perceptions of service quality in Mexico and Turkey.

Impact of Merger Announcements on Shareholders’ Investments in India: Empirical Analysis in Selected Sectors

2019 ◽  
Vol 8 (2) ◽  
pp. 96-103
Author(s):  
Krishnaveni . ◽  
P. Sathwik Teja
Keyword(s):  
Mergers And Acquisitions ◽  
Banking Sector ◽  
Negative Impact ◽  
Positive Impact ◽  
Abnormal Returns ◽  
Horizontal Mergers ◽  
Gas Industry ◽  
Target Company ◽  
Stock Market Valuation ◽  
The Impact

This study makes an attempt to estimate the impact of horizontal mergers and acquisitions that have taken place in eight selected banks/companies of five Indian private sectors. An event study methodology has been used to explore the effects on the investments of shareholders of the selected company mergers that have taken place during the period 2010 to 2018. This study of stock market valuation and estimation of effective, abnormal and cumulative average abnormal returns in the context of Indian horizontal mergers has shown interesting findings. The results indicate that the mergers and acquisitions in the banking sector have shown a positive impact on the investors of both Kotak Mahindra bank, the bidder bank and ING Vysya bank, the target bank. Further, in the case of pharmaceutical sector the M&A has shown a positive impact on the investors of both bidder company (Torrent Pharma) and the target company (Unichem Laboratories Ltd). In case of first merger considered under the steel sector and in the Oil &Gas industry (only one merger), the negative impact is found both on the investors of bidder and target companies.In the rest of the mergers considered for this study, mixed reaction of both positive and negative returns has been found. The findings of this study provide input to both the acquiring and the target company shareholders. The acquiring company tends to overbid for acquiring the target company, therefore this process mostly benefits the target company’s shareholders at the cost of acquiring company shareholders. Hence, the management of the acquiring company should be vigilant.

Every coin has two sides: the impact of time pressure on employees’ knowledge hiding

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xianchun Zhang ◽  
Zhu Yao ◽  
Wan Qunchao ◽  
Fu-Sheng Tsai
Keyword(s):  
Time Pressure ◽  
Negative Impact ◽  
Positive Impact ◽  
Job Security ◽  
Statistical Technique ◽  
Content Type ◽  
Individual Knowledge ◽  
Negative Effect ◽  
Knowledge Hiding ◽  
The Impact

Purpose Time pressure is the most common kind of work pressure that employees face in the workplace; the existing research results on the effect of time pressure are highly controversial (positive, negative, inverted U-shaped). Especially in the era of knowledge economy, there remains a research gap in the impact of time pressure on individual knowledge hiding. The purpose of this paper is to explore the impact of different time pressure (challenge and hindrance) on knowledge hiding and to explain why there is controversy about the effect of time pressure in the academics. Design/methodology/approach The authors collected two waves of data and surveyed 341 R&D employees in China. Moreover, they used regression analysis, bootstrapping and Johnson–Neyman statistical technique to verify research hypotheses. Findings The results show that challenge time pressure (CTP) has a significant negative effect on knowledge hiding, whereas hindrance time pressure (HTP) has a significant positive effect on knowledge hiding; job security mediates the relationship between time pressure and knowledge hiding; temporal leadership strengthen the positive impact of CTP on job security; temporal leadership can mitigate the negative impact of HTP on job security. Originality/value The findings not only respond to the academic debate about the effect of time pressure and point out the reasons for the controversy but also enhance the scholars’ attention and understanding of the internal mechanism between time pressure and knowledge hiding.

Banking market structure and efficiency: an assessment of the USA and Canada

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Salah U-Din ◽  
David Tripe
Keyword(s):  
Market Structure ◽  
Market Power ◽  
Negative Impact ◽  
Positive Impact ◽  
Bank Efficiency ◽  
Content Type ◽  
Frontier Analysis ◽  
Banking Market ◽  
Cost Efficient ◽  
The Impact

PurposeThe study aims to analyze the changes in banking market structure and their impact on the bank efficiency.Design/methodology/approachThis study uses a one-stage stochastic frontier analysis (SFA) to compare the impact of the market structure and the GFC on the economic efficiency of the major banks in both countries.FindingsA significant negative impact of the GFC is observed on bank efficiency. Overall, Canadian banks posted better efficiency scores than their American counterparts. Additionally, cost-efficient banks are found to be more resilient to crises and more profit-efficient in the post-GFC period. The authors found that market power had a positive impact on the cost and profit efficiency of banks. Higher levels of equity, market power and concentration helped banks be more cost-efficient.Research limitations/implicationsOnly large banks are selected for study although it represents the majority stake of both banking sectors.Practical implicationsBanking regulators should include more measures to assess the banking market structure and performance.Originality/valueAs per the best knowledge of the authors, it is the first study to assess the change in banking market structure and efficiency of the US and Canadian banking sectors in the post-GFC period.

FIFA – highlighting the links between global banking and international money laundering

2018 ◽  
Vol 21 (4) ◽  
pp. 498-512 ◽  
Author(s):  
Mohammed Ahmad Naheem
Keyword(s):  
Money Laundering ◽  
Financial Services ◽  
Banking Sector ◽  
Due Diligence ◽  
Content Type ◽  
Services Sector ◽  
Financial Services Sector ◽  
Global Banking ◽  
Beneficial Ownership ◽  
The Impact

PurposeThis paper uses the recent (August 2015) FIFA arrests to provide an example of how illicit financial flows are occurring through the formal banking and financial services sector. The purpose of this paper is to explore which elements of anti-money laundering (AML) compliance need to be addressed to strengthen the banking response and reduce the impact of IFFs within the banking sector.Design/methodology/approachThe paper is based on the indictment document currently prepared for the FIFA arrests and the District Court case of Chuck Blazer the FIFA Whistleblower. It uses the banking examples identified in the indictment as typologies of money laundering and wire fraud. Corresponding industry reports on AML compliance are included to determine where the major weaknesses and gaps are across the financial service.FindingsThe main findings from the analysis are that banks still have weak areas within AML compliance. Even recognised red flag areas such as off shore havens, large wire transfers and front companies are still being used. The largest gaps still appear to be due diligence and beneficial ownership information.Research limitations/implicationsThe research topic is very new and emerging topic; therefore, analysis papers and other academic writing on this topic are limited.Practical implicationsThe research paper has identified a number of implications for the banking sector, addressing AML deficiencies, especially the need to consider the source of funds and the need for further enhanced due diligence systems for politically exposed and influential people and the importance of beneficial ownership information.Social implicationsThis paper has implications for the international development and the global banking sector. It will also influence approaches to AML regulation, risk assessment and audit within the broader financial services sector.Originality/valueThe originality of this paper is the link between the emerging issues associated with allegations of bribery and corruption within FIFA and the illicit financial flow implications across the banking sector.

The impact of social trends: teenagers’ attitudes for organic food market in Thailand

2018 ◽  
Vol 45 (4) ◽  
pp. 682-699 ◽  
Author(s):  
Waripas Jiumpanyarach
Keyword(s):  
Negative Impact ◽  
Positive Impact ◽  
Organic Food ◽  
High Price ◽  
Food Motivation ◽  
Organic Foods ◽  
Content Type ◽  
Social Trends ◽  
Food Items ◽  
The Impact

Purpose The purpose of this paper is to investigate teenagers’ preferences, attitudes, and purchasing power towards organic foods in markets and to explain influences of teenagers’ choices and purchasing intentions on organic foods. Design/methodology/approach A paper-based and a web-based survey were conducted among 557 teenagers in Thailand. A choice experiment logit model was used to identify factors influencing decision in purchasing. Findings The study found that teen consumers were likely to buy ready-to-cook organic food items instead of conventional food items because of health and food safety concerned under their budget constraints. The willingness to pay found organic food items (eggs, pork, chicken) had negative impact but organic opinion had positive impact. The attitudes on high price of organic food items were positive impact because of production process, quality, and quantity of products. Research limitations/implications Teenagers’ consumption impacted on food demands in supermarkets and convenient stores because of their attitudes and behaviours in purchasing. The desired food characteristics should be good quality, safety for consumers, and available in the market nationwide. The supported policies for expanding organic markets were benefits for organic farmers to be sustainable farming. Originality/value This study examined the impacts of economic conditions and the premium quality healthy food products on teenagers’ food motivation.

The speed of change and performance risk: examining the impacts of IT spending in the US hotel industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nan Hua ◽  
Tingting Zhang ◽  
Melissa F. Jahromi ◽  
Agnes DeFranco
Keyword(s):  
Business Performance ◽  
Positive Impact ◽  
Hotel Industry ◽  
Content Type ◽  
Performance Risk ◽  
The Us ◽  
The Usa ◽  
Revenue Volatility ◽  
The Impact ◽  
Speed Accuracy

Purpose This study aims to investigate the impact of the speed of change (trend) in information technology (IT) expenditures on performance risk indicated by revenue volatility in the US hotel industry. Design/methodology/approach To systematically investigate the impacts of IT expenditures on hotel performance risks, this study collects the same store proprietary data of 1,471 hotel properties from CBRE, a leading hotel consulting firm in the USA, from 2011 to 2017, with a total of 10,297 observations. Findings Econometric analyses are performed and results indicate a significant and positive impact of the speed of change of IT systems expenditures on the performance risk after comprehensively controlling for confounding factors following prior research. Originality/value With the increased importance of IT in day-to-day activities, hospitality business owners have started to quickly adjust their investment in IT infrastructure and superstructure to enhance their business performance. However, their fast-changing expenditures may introduce more risks to their businesses based on the speed–accuracy tradeoff, systems theory and the Schumpeterian Growth Model. This study is one of the pioneer projects that ever assessed the impact of IT expenditure and speed of change on performance risks of hotels.

The impact of brand associations on brand loyalty in the football industry

2016 ◽  
Vol 6 (5) ◽  
pp. 499-519 ◽  
Author(s):  
Daniel Maderer ◽  
Dirk Holtbruegge ◽  
Rachel Woodland
Keyword(s):  
Brand Loyalty ◽  
Structural Equation ◽  
Brand Management ◽  
Negative Impact ◽  
Equation Modeling ◽  
Brand Associations ◽  
Content Type ◽  
Attitudinal Loyalty ◽  
The Usa ◽  
The Impact

Purpose The purpose of this paper is to explore the impact of brand associations on brand loyalty of fans toward professional football clubs in developed and emerging football markets (EFM). In particular, the following research questions are answered: how important are different determinants of brand associations for fans from developed football markets (DFM) and EFM? Are there any major differences in the importance of different brand associations and their influence on brand loyalty between fans from DFM and EFM? Design/methodology/approach Based on the customer-based brand equity framework the impact of brand associations on brand loyalty is tested with a sample of 3,587 fans from DFM – Germany, England, Spain, Italy, and France (2,032) – as well as fans from EFM – Brazil, Russia, India, China, and the USA (1,555). Findings Structural equation modeling is applied and shows a negative impact of brand attributes on attitudinal loyalty, whereas brand benefits positively impact attitudinal loyalty. Furthermore, significant differences between fans from developed and EFM are revealed. Implications for the management of football teams and for research on brand management are derived. Originality/value This study extends the work of Gladden and Funk (2001) by expanding the model used to assess brand loyalty and analyzes it empirically in different football markets. When looking to foster attitudinal loyalty, marketers should concentrate on benefit associations instead of attribute associations. Most importantly, marketers should be aware that when focusing on developing brand loyalty amongst EFM fans, they should not simply apply the same strategies that proved to be effective in DFM and vice versa.

Impact of perceived experiential advertising on customers' responses: a multi-method approach

2020 ◽  
Vol 38 (6) ◽  
pp. 1237-1258
Author(s):  
Caroline Lacroix ◽  
Lova Rajaobelina ◽  
Anik St-Onge
Keyword(s):  
Affective Commitment ◽  
Banking Sector ◽  
Positive Impact ◽  
Structural Equations ◽  
Three Dimensions ◽  
Expression Recognition ◽  
Online Questionnaire ◽  
Content Type ◽  
Brand Credibility ◽  
The Impact

PurposeThis article proposes two studies to demonstrate the impact of three dimensions of perceived experiential advertising – cognitive/affective/sensory advertising, relate advertising and behavioural advertising – on consumer behaviour (brand credibility, affective commitment and emotions) in the banking sector.Design/methodology/approachFor study 1, a total of 506 online panellists of a recognized Canadian research firm were asked to evaluate a local bank advertisement using an online self-reported questionnaire. For study 2, a total of 65 Canadian respondents recruited through Facebook and Google adverts were asked to watch two video advertisements (one more experiential and the other less experiential). After viewing the advertisements on a computer equipped with FaceReader software by Noldus, participants completed a short online questionnaire.FindingsUsing structural equations modelling, the first study shows that brand credibility explains the positive impact of perceived cognitive/affective/sensory advertising (complementary mediation) and perceived behavioural advertising (indirect mediation only) on affective commitment. The second study illustrates that the cognitive/affective/sensory dimension is more important for experiential advertising than experiential advertising. Employing FaceReader facial expression recognition software results indicate that the bank advertisement with a higher score of perceived cognitive/affective/sensory advertising produces a higher level of happiness among respondents.Originality/valueBoth studies provide new insights into perceived experiential advertising and the impact of the latter on consumers. Benefits to scholars and practitioners include an enhanced understanding of advertising effectiveness in the banking sector.

scholarly journals The effects of farmers’ adoption behavior of soil and water conservation measures on agricultural output

2020 ◽  
Vol 12 (5) ◽  
pp. 599-615
Author(s):  
Xiaohui Huang ◽  
Qian Lu ◽  
Fei Yang
Keyword(s):  
Soil Erosion ◽  
Water Conservation ◽  
Negative Impact ◽  
Positive Impact ◽  
Soil And Water Conservation ◽  
Agricultural Output ◽  
Content Type ◽  
Conservation Measures ◽  
The Impact ◽  
Soil And Water

Purpose This paper aims to build a theoretical model of the impact of farmers’ adoption behavior of soil and water conservation measures on the agricultural output to analyze the impact of farmers’ adoption behavior of soil and water conservation measures on agricultural output. Design/methodology/approach Based on the field survey data of 808 farmers households in three provinces (regions) of the Loess Plateau, this paper using the endogenous switching regression model to analyze the effect of farmers’ adoption behavior of soil and water conservation measures on agricultural output. Findings Soil erosion has a significant negative impact on agricultural output, and soil erosion has a significant positive impact on farmers’ adoption of soil and water conservation measures. Farmers adopt soil and water conservation measures such as engineering measures, biological measures and tillage measures to cope with soil erosion, which can increase agricultural output. Based on the counterfactual hypothesis, if farmers who adopt soil and water conservation measures do not adopt the corresponding soil and water conservation measures, their average output per ha output will decrease by 2.01%. Then, if farmers who do not adopt soil and water conservation measures adopt the corresponding soil and water conservation measures, their average output per ha output will increase by 12.12%. Government support and cultivated land area have a significant positive impact on farmers’ adoption behavior of soil and water conservation measures. Research limitations/implications The research limitation is the lack of panel data. Practical implications Soil erosion has a significant negative impact on agricultural output, and soil erosion has a significant positive impact on farmers’ adoption of soil and water conservation measures. Farmers adopt soil and water conservation measures such as engineering measures, biological measures and tillage measures to cope with soil erosion, which can increase agricultural output. Social implications The conclusion provides a reliable empirical basis for the government to formulate and implement relevant policies. Originality/value The contributions of this paper are as follows: the adoption behavior of soil and water conservation measures and agricultural output are included into the same analytical framework for empirical analysis, revealing the influencing factors of farmers’ adoption behavior of soil and water conservation measures and their output effects, enriching existing research. Using endogenous switching regression model and introducing instrumental variables to overcome the endogenous problem between the adoption behavior of soil and water conservation measures and agricultural output, and to analyze the influencing factors of farmers’ adoption behavior of soil and water conservation measures and its impact on agricultural output. Using the counter-factual idea to ensure that the two matched individuals have the same or similar attributes, to evaluate the average treatment effect of the behavior of soil and water conservation measures, to estimate the real impact of adaptation measures on agricultural output as accurately as possible and to avoid misleading policy recommendations.

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