scholarly journals Crisis Management Strategy in Handling Financial Sector Scandals in the Digital Transformation Era

2021 ◽  
pp. 115-131
Author(s):  
Wenjing Wang ◽  
Arthur S. Guarino
Keyword(s):  
Crisis Management ◽  
Financial Services ◽  
Stock Price ◽  
Service Sector ◽  
The United States ◽  
Digital Transformation ◽  
Public And Private ◽  
Services Sector ◽  
Long Run ◽  
Management Plans

This paper provides empirical evidence of how scandals could affect financial institutions in terms of market stock price, yearly returns, and the length of time it took to regain the public’s trust and ultimately recover in the long run. Moreover, we carefully examine the importance of dealing with crisis management in the digital transformation era’s financial service sector. We specialize in crisis management, which aims to mitigate the destruction of companies’ public crises in existence. Finally, based upon investigating scandals in public and private financial sectors in the United States, we list 21 strategic crisis management plans at the end of the paper to handle financial services sector scandals in the digital transformation era.

scholarly journals The Long-Run Performance of U.S. Bidding Firms in the Post M&A Period: The Impact of Bid Type, Payment Method and Industry Specialisation

2017 ◽  
Vol 12 (2) ◽  
pp. 230 ◽  
Author(s):  
George Giannopoulos ◽  
Andrew Holt ◽  
Ehsan Khansalar ◽  
Patrick Mogoya
Keyword(s):  
Mergers And Acquisitions ◽  
Financial Services ◽  
Abnormal Returns ◽  
The United States ◽  
Industrial Sector ◽  
Payment Method ◽  
Public Firms ◽  
Services Sector ◽  
Long Run ◽  
The Impact

This study investigates how mergers and acquisitions (M&A) affect the wealth of shareholders of public firms in the United States (U.S). More specifically, it investigates whether the nature of the bid, the payment method used, and the type of M&A have implications for shareholders of U.S bidding firms. The study analyses 352 mergers and acquisitions in the U.S during the period 1999-2008, and its results indicate that bidding firms suffer significant negative buy-and-hold abnormal returns in the three years period after a M&A announcement. The results also suggest that, in the long-run, hostile bids and cash-financed bidders outperform friendly bids and stock-funded bidders, respectively. Furthermore, the study also finds that in the long-run bidder firms that focus on industry specialisation within their M&A targets significantly outperform firms that adopt a more diversified strategy. The analysis also investigates the effects of M&A specialisation/diversification in six different sectors, and finds that specialised bidders outperform diversified bidders in four sectors: consumer & basic materials, energy & utilities, communications and technology. Furthermore, bidder firms in the financial services sector perform significantly better when diversifying into other sectors, while the performance of bidder firms in the industrial sector appears unaffected by the degree of M&A specialisation or diversification.

Digital Transformation of the Service Sector

2021 ◽  
pp. 41-54
Author(s):  
D. Shevchenko ◽  
V. Mihaylov
Keyword(s):  
Business Model ◽  
Service Sector ◽  
New Technologies ◽  
Rapid Development ◽  
Digital Transformation ◽  
Services Sector ◽  
Remote Maintenance ◽  
New Business ◽  
The Difference ◽  
Cloud Technologies

The article is devoted to the problems of digital transformation of companies in the service sector. The article describes the concepts of "digitization", "digitalization", "digital transformation", "automation". The analysis of the main sectors of the public services sector, the processes of transformation into a new business model of their development is carried out. Specific examples show the role of digital technologies implemented by individual companies, the leaders of their industry: "Internet of Things" (IoT); virtual diagnostics of the service; mobile applications and portals; artificial intelligence and machine learning (AI / ML); remote maintenance; UX design; virtual reality; cloud technologies; online services and others. The authors proceed from understanding the difference between automation and digitalization, the strategic goal of which is to create a new digital business model that creates new value. The result of digital transformation is the reconfiguration of processes that change the business logic of the company and the process of creating value. The article concludes that the rapid development of new technologies leads to the fact that companies face not only a dilemma when choosing the most suitable technologies for investment, but also the problem of staffing and finding an adequate organizational structure to create and maintain a new business model of the company.

scholarly journals PERLINDUNGAN HUKUM BAGI NASABAH PENGGUNA INTERNET BANKING

GANEC SWARA ◽  
2019 ◽  
Vol 13 (2) ◽  
pp. 207
Author(s):  
ALINE FEBRIANY LOILEWEN ◽  
TITIN TITAWATI
Keyword(s):  
Risk Management ◽  
Consumer Protection ◽  
Financial Services ◽  
Service Sector ◽  
Legal Protection ◽  
Internet Banking ◽  
Electronic Information ◽  
Customer Complaints ◽  
Services Sector ◽  
Financial Services Sector

  This study aims to examine and analyze how the legal protection and supervision of the banking world for customers using internet banking facilities.  This study uses a form of normative legal research, namely research that is based on written rules and legislation and various literature related to the problems that will be discussed in this study.   Some forms of legal protection for customers using internet banking facilities are the existence of the Financial Services Authority Regulation No.38 / POJK.03 / 2016 concerning Application of Risk Management in the Use of Information Technology by Commercial Banks (POJK IT Risk Management). The existence of Article 1 number 12 of Law No. 11 of 2008 concerning Information and Electronic Transactions (UU ITE), electronic signatures are signatures consisting of electronic information that is attached, associated or related to other electronic information used as a verification and authentication tool . Another thing that can be done by customers who use internet banking facilities is to conduct customer complaints. Customer complaints are a manifestation of the protection of rights owned by customers, namely the right to be heard. This right is regulated in Article 4 letter d of Law 8 of 1999 concerning Consumer Protection of the PK Law). Whereas in the financial services sector, there is Article 32 of the Financial Services Authority Regulation No. 1 / POJK.07 / 2013 concerning Consumer Protection in the Financial Services Sector (POJK PK) which stipulates that financial service sector business operators must have and carry out customer service and settlement complaints.  The supervision policy carried out by Bank Indonesia towards banks aims to protect the interests of the community and to maintain the continuity of the bank's business as a trust and as an intermediary institution, the supervision is carried out either directly or indirectly

scholarly journals Corporate crises in the digital world: what went wrong with Chipotle?

2021 ◽  
Author(s):  
Stephanie McGuinty
Keyword(s):  
Social Media ◽  
Crisis Management ◽  
Digital Media ◽  
Crisis Communication ◽  
The United States ◽  
Theoretical Frameworks ◽  
Online Data ◽  
Digital World ◽  
Management Plans ◽  
Corporate Crisis

The practice of crisis communication has evolved since the rise of digital technologies and social media. Defined as an unexpected and non-routine event with high levels of uncertainty, crisis management plans and strategies are essential for organizations’ successes. Failure to strategically manage crises through both traditional and digital media may result in significant damages and losses. This MRP examines a recent corporate crisis - the case of Chipotle Mexican Grill during the 2015-2016 E. coli outbreak across the United-States - and looks at how the social media strategy (namely Twitter) influenced the outcome of the case. Using a combination of data analytics, company financials, and theoretical frameworks, this research brings to light the importance of measuring online data, and makes suggestions on how companies may use social media to manage various types of crises. Keywords: crisis communication, crisis theory, crisis management, crisis strategies, image repair, social media, crisis and technology, brand equity

scholarly journals Influencing factors for the digital transformation in the financial services sector

2020 ◽  
Author(s):  
Oliver Werth ◽  
Christoph Schwarzbach ◽  
Davinia Rodríguez Cardona ◽  
Michael H. Breitner ◽  
Johann-Matthias Graf von der Schulenburg
Keyword(s):  
Influencing Factors ◽  
Social Factors ◽  
Financial Services ◽  
Digital Transformation ◽  
Underlying Structure ◽  
Services Sector ◽  
Insurance Sector ◽  
Financial Services Sector ◽  
Primary Driver ◽  
Almost All

AbstractDigital transformation affects almost every area in societies and has consequences for incumbent companies. With qualitative research, we explore the influencing factors for digital transformation in the financial services sector. We use a PEST-model and Porter’s Five Forces as the underlying structure for our analysis. Our interviews and findings show that the financial services sector face the same current challenges, but their impact is perceived higher in the banking than in the insurance sector concerning social factors and bargaining power of buyers. The character of the current development is evolutionary rather than disruptive. Almost all incumbents currently focus on modernizing and consolidating their backend-systems. The aim is to enable them for new customer-oriented services. A primary driver for the digital transformation is the threat of a broader market entry by BigTechs. Our research provides a comprehensive overlook about the influencing factors of digital transformation using statements from experts in the field.

Gender Divisions of Labour in the Post-Fordist Economy: The Maintenance of Occupational Sex Segregation in the Financial Services Sector

1994 ◽  
Vol 26 (9) ◽  
pp. 1397-1418 ◽  
Author(s):  
L McDowell ◽  
G Court
Keyword(s):  
Financial Services ◽  
Service Sector ◽  
Division Of Labour ◽  
Global Cities ◽  
General Outline ◽  
Services Sector ◽  
The Social ◽  
Gender Divisions ◽  
Advanced Industrial Economies ◽  
City Of London

The purpose in this paper is to bring together a set of arguments about the general significance of service-sector employment in advanced industrial economies, the consequences of feminisation and casualisation for the occupational structure in these societies, particularly in ‘global’ cities, and the changing nature of gender divisions of labour. After a general outline of the changing distribution of work, the example of financial services, which are of enormous significance in global cities such as London, will be taken to investigate the consequences of the coincidence of these changes for employees in professional occupations. The particular empirical illustration of the arguments is an analysis of the social division of labour in merchant banks in the City of London in the early 1990s.

scholarly journals Valuation of FinTech Innovation Based on Patent Applications

2020 ◽  
Vol 12 (23) ◽  
pp. 10158
Author(s):  
Jelena Kabulova ◽  
Jelena Stankevičienė
Keyword(s):  
Financial Services ◽  
Stock Price ◽  
Patent Application ◽  
Disruptive Technology ◽  
Financial Industry ◽  
Negative Effects ◽  
Services Sector ◽  
Machine Learning Applications ◽  
Research Findings ◽  
Patent Applications

The financial services sector, perhaps more than any other, is being disrupted by advances in technology. The purpose of this study is to provide comprehensive data and evidence on value of the FinTech innovation event. First, a text-based filtering method for identifying FinTech patent applications is provided. Using machine learning applications, innovations are classified into major technology groups. The methodology for valuation of FinTech innovation is based on data of stock price changes. To assess the value impact, Poisson flow rates and stock price movements were combined. Further, to evaluate the effect of FinTech patents on the company’s value, a combination of CAR of patent application and Poisson intensities were used. Research findings provide evidence that FinTech innovations bring significant value for innovators and Blockchain being especially valuable. Such innovations as blockchain, robo-advising and mobile transactions are the most valuable for the financial sector. On one side of the spectrum, the financial industry can be affected more negatively by the innovation of nonfinancial startups that carry disruptive technology at their core. However, on the other side of the spectrum, market leaders who make significant investments in their innovations can evade most of these negative effects. This helped to form an overall view of FinTech innovations.

MACROECONOMIC EFFECTS OF GREATER COMPETITION IN THE SERVICE SECTOR: THE CASE OF ITALY

2010 ◽  
Vol 14 (5) ◽  
pp. 677-708 ◽  
Author(s):  
L. Forni ◽  
A. Gerali ◽  
M. Pisani
Keyword(s):  
Euro Area ◽  
Service Sector ◽  
Monopolistic Competition ◽  
Spillover Effects ◽  
Dynamic Stochastic General Equilibrium ◽  
Services Sector ◽  
Long Run ◽  
Dynamic Stochastic ◽  
Nontradable Goods ◽  
Cross Country

In this paper we assess the effects of increasing competition in the service sector in one country of the euro area. We focus on Italy, which, based on cross-country comparisons, stands out as the country with the highest markups in nonmanufacturing industries among the OECD countries. We propose a two-region (Italy and the rest of the euro area) dynamic stochastic general equilibrium model where we introduce nontradable goods as a proxy for services and we allow for monopolistic competition in labor, manufacturing, and services markets. We then use the model to simulate the macroeconomic and spillover effects of increasing the degree of competition in the Italian services sector. According to the results, reducing the markups in services to the levels prevailing in the rest of the euro area induces in the long run an increase in Italian GDP equal to 11% and an increase in welfare (measured in terms of steady state consumption equivalents) of about 3.5%. Half of the GDP increase would be realized in the first three years. The spillover effects to the rest of the euro area are limited: consumption, investment, and GDP increases are relatively small.

Adoption of Digital Solutions for Agriculture in Africa

2021 ◽  
pp. 64-82
Author(s):  
Charles Ochieng Odhiambo ◽  
Titus Pkukat Kaprom ◽  
David Kipngetich Chepkangor
Keyword(s):  
Knowledge Management ◽  
Life Cycle ◽  
Financial Services ◽  
Agricultural Extension ◽  
Digital Transformation ◽  
Extension Services ◽  
Services Sector ◽  
Financial Services Sector ◽  
Project Life Cycle ◽  
Project Life

This chapter explores the digital innovations in the financial services sector relevant to sustainable agricultural production, the extent of their availability to the farmers and impact on productivity. It also assesses application of digital solutions on knowledge management and delivery of agricultural extension services to the farmers. Digital transformation in agricultural projects has also been covered in this chapter covering the entire project life cycle; production tasks are currently delivered as projects. Lastly, this chapter also looks at the digital innovations in marketing agricultural products.

FDI and Growth of Service Sector in India

2016 ◽  
Vol 13 (3) ◽  
Author(s):  
Debabrata Sutradhar
Keyword(s):  
Foreign Direct Investment ◽  
Real Estate ◽  
Financial Services ◽  
Direct Investment ◽  
Service Sector ◽  
Computer Software ◽  
Services Sector ◽  
The World ◽  
Software And Hardware

In the contemporary globalised economy, service sector attracts the major share of Foreign Direct Investment (FDI) in the world. India being a part of this phenomenon also attracts most of its FDI in the service sector. The present paper highlights the trend in FDI movement in the world in general and India in particular. Further, it reviews the FDI policy in India in the post liberalized period. The growth of FDI in services sector may be attributed to the changing pattern of global FDI and also the liberalization and globalization policies pursued by India. Since 2000, the high inflow of FDI has resulted in the growth of new services viz., financial and non-financial services, telecommunication, computer software and hardware, hotel and tourism, construction activities and real estate. The growth of services sector had led to the growth of export of services from India which now accounts the majority of export from the country.Keywords: FDI, Services sector, Export, Liberalization.

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