PurposeThe “business‐risk” relationship across countries does not fit exactly into a “model” nor does it have a pure palliative effect. Following this idea, the purpose of this research is to reinforce a comparative study on small to medium‐sized enterprises (SMEs) handling both risk and crisis management according to a new tailored model of a balance scorecard (BS). This new model of risk and crisis management aims at improving both SMEs' management adaptation and performance across all of crisis' stages, something not attempted so far in the literature.Design/methodology/approachThe application of such a BS comes from the author's experience as a banker financing various SMEs industries, as a bank consultant on risk management, yet primarily from the results of a survey performed on a set of Romanian and Cypriot SMEs, equal‐proportionally selected from the area of trading, manufacturing, and services. The data regard the period 12/2008‐06/2011 as representative for the latest global financial crisis affecting the entire European Union region, too.FindingsCoincidently or not, this study's results show a significant improvement of the financial performance of the SMEs who employed this model compared to those who did not.Originality/valueThis model's simplicity appeals to managers and regulators in understanding important business risks and crisis related phenomena. Backed by this idea, this research underpins a comparative study on SMEs handling risk and crisis management according to a new tailored model of a BS.
For the past 12 years volatile waves of M&As and divestments in the banking sector were generated by numerous, but often similar motives. This article analyses the motives behind bank M&As regarding the acquirer's and the target's reasons and their perceived criteria of success or failure. The study has identified soft “irrational” factors such as bargain deals or excess cash, behind several economic motives such as synergies, survival, market penetration, or following the customer. Overall, the motives proved to be interconnected, allowing traceable further bank consolidation, especially during financial crisis, at the intercountry level. © 2013 Wiley Periodicals, Inc.
Purpose -Most recent bank bailouts, from a financial and economic perspective, turn political. This paper seeks to frame ten effective implications/lessons of the most recent bank bailouts of 2007-2009 in the Western economy model when analyzing actual shareholders' value retrenchment or growth opportunities. Design/methodology/approach -The paper uses a literature review and a re-conceptualized framework of event study methodology, secondary data analysis of qualitative and quantitative information. Findings -Recent bank bailouts relate to: global bailout interconnections, economic downturn and liquidity boost, abnormal returns, efficiency recovery, evasion of social costs, new opportunities for M&A, new risk management applications, opportunistic investors and eventually patience. Most important, findings recommend shareholders to grasp opportunities for bargains from bailout banks as well as to harvest their existing investments. At the same time, economic education and control become another important solution.Research limitations/implications -Consequently, as the paper targets most recent bailouts, a still ongoing event, there is a need for extended financial data that could enhance some cause-related solutions after economic recovery. Practical implications -The practicality of the paper refers to guiding management of both government and financial institutions on the choice for reasoning bank bailouts, providing some critical thinking views to investors as well as academics. Originality/value -Research or studies on the most recent financial crises bailouts have not yet been written, due to the process continuation. The novelty of the paper resides not in calculating ratios and interpreting them, but rather in looking more into some interesting strategic moves used to boost shareholders' value.
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