Rethinking bank business models: the role of intangibles

Chen, Lei; Danbolt, Jo; Holland, John

doi:10.1108/aaaj-11-2012-1153

Cited by 64 publications

(105 citation statements)

References 46 publications

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“…Models of organisation, resources, process, teams, individuals, decision costs, information production and capital allocation underlie many different financial firms such as banks, private equity and venture capital, and insurance and pension fund firms (Stein, 2002;Chen et al 2004;Chen et al 2014).…”

Section: Discussionmentioning

confidence: 99%

A behavioural theory of the fund management firm

Holland

2014

The European Journal of Finance

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Abstract-The paper outlines a behavioural theory of the fund management (FM) firm comprising, investment decisions (at stock and portfolio levels) by teams and individuals, and of an organisation process and contextual resource factors affecting decisions. FM organisational processes interacted with resources to enhance investment team decision conditions, costs and processes. Enhanced conditions and reduced decision costs were expected to improve the chances of FM success via new information production and better quality decisions. These dynamic elements to FM firms can be interpreted as tentative organisational means to deal with major problems of behaviour, uncertainty and information asymmetry at the heart of the valuation, investment, and performance problems facing FMs. Field research was conducted in 15 FM firms during [2004][2005][2006][2007][2008][2009][2010][2011]. A grounded theory approach was employed in processing the data. This led to improvements in empirical understanding of behaviour within FM firms and markets. The results were discussed relative to relevant literature and previous grounded theory. This created a new conceptual tool to investigate FM underperformance and variety in FM styles. The paper demonstrated an empirically rich model of hierarchy, information production, capital allocation and other resource usage in financial institutions and discussed how this created further opportunities for research 1. Introduction Clarkson (1963), Holland and Doran (1998), Hellman (2000), Holland (2006) have revealed an embryonic grounded theory underlying FM structure and behaviour. This field based research has suggested that a more complete grounded theory of the fund management firm and of investment decisions making by its teams and individuals might underlie fund management behaviour. The aim was to explore this possibility with a group of with fund managers and investment team members in 15 large international fund management firms (FMs). As a result the core research question concerned the following. How do fund manager firms organise and conduct decision making to create investment value? The paper begins in section 2 with a brief summary of the literature.Section 3 discusses the research method. Locke (2001. ch.7) comments that "the presentation of grounded theories similarly follows a format that involves the telling of theoretical elements and the showing of data fragments that instance them" and this format can be outlined as: summarise the theoretical frame -serially present each theoretical element well illustrated with data instancessummarise the theoretical frame. In section 4 the 'big picture' of the behavioural theory of fund management is briefly summarised. It is briefly interpreted using the analytic framework based on a set of theories and literature relevant to the FM phenomena. The results section (5 to 9) are presented in the order; -investment decision processes -resources -organisational processes -success and failure, so as build up this 'big' picture from a micro vie...

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Section: Discussionmentioning

confidence: 99%

A behavioural theory of the fund management firm

Holland

2014

The European Journal of Finance

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“…Several studies use structured interviews embedded within a grounded theory approach as the core research design -for example, Coleman (2015), Holland (2006), Holland (2016) and Lord (2014) all conduct interviews with fund managers as a way to determine various aspects of how they make investment decisions or explain differences in their performance. Chen et al (2014) employ interviews with bank managers and analysts to examine how intangibles contribute to value creation. Also within this genre of research, Holland & Doran (1998) conduct interviews with UK fund managers to determine how their relationships with the companies they invest in impacted upon their stock selection weighting decisions, and Holland et al (2012) use a case study approach with interviews to examine how Japanese financial firms use accumulated intellectual capital in their valuations and decision-making.…”

Section: <Insert Table 3 About Here>mentioning

confidence: 99%

Why does research in finance have so little impact?

Brooks

Fenton

Schopohl

et al. 2019

Critical Perspectives on Accounting

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The quantity of finance research has grown enormously over the past two decades, yet questions remain over its breadth and ability to benefit the economy and society beyond academia. Using multisource data, we argue that individual and institutional incentives have fostered insularity and a consequent homogeneity in the discipline. We examine the characteristics of research that is published and cited in the leading field journals in finance, arguing that the work has become abstract and unrelated to real world issues. The work published in the 'top' journals makes increasing use of US data, even where the researchers are drawn from different countries. Using information from impact assessment, publication patterns, and grant capture, we illustrate that this narrow agenda lacks relevance to the financial services sector, the economy or wider society compared to other areas of business and management research. In particular, we highlight the relative absence of research on ethics in academic finance and discuss the likely consequences for the discipline including its relevance to society. P a g e | 1 citation database of peer-reviewed academic studies, 4 and funding data from the Economic and Social Research Council (ESRC, the main UK government funding body for social science research).The two UK research evaluation exercises both provided a panel-based assessment of the 'quality' of research undertaken by UK higher education institutions separately for each subject (referred to as a panel, or more accurately in RAE / REF parlance as a sub-panel). Data from the RAE2008 and REF2014 provide snapshots at those specific points in time of the panels' assessments of the 'quality' of work being undertaken in UK universities over the previous six years in each case (2002-2007 and 2008-2013 respectively). The RAE / REF only take place periodically and thus data are only available for these specific intervals. While the work being assessed comprises publications in (peer-reviewed) journals, monographs, book chapters and working papers, our analysis concentrates on those outputs submitted to the RAE/REF that represent publications in peer-reviewed journals. The nature and purpose of the RAE and REF are summarised nicely in Brooks et al. (2014, p. 991): 'The RAE [and REF are] evaluation[s] of the 'quality'

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“…Despite of this, there are also attempts to capture other, less measurable aspects of business models, referring for example to the category of an intellectual capital (Nosowski, 2013;Chen, Danbolt & Holland, 2014), as well as proposals for categorization of bank business models that take into account less typical criteria (e.g. business models embedded in the banking book and business models embedded in the trading book (Bischof, Daske & Gebhardt, 2011).…”

Section:  What Products and Services Does The Bank Offer And To Whatmentioning

confidence: 99%

The risk of non-compliance in the context of a banking business model

Łosiewicz-Dniestrzańska¹,

Nosowski²

2017

PROSOC

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The article is an attempt to identify the scope and nature of interactions that occur between the demands of compliance and business models of banks. Particular emphasis is placed on the challenges that are generated by the need for compliance in the context of the created value and its relationship with customer experience, and in the context of the management of the bank's operating model. Crucial contact points of business models and compliance audits have been identified. The Authors recognized as key tendency of changes the trend to reduce business complexity of financial entities, as well as the integration of compliance management with elements of the business model of banks and of treating it not only as an onerous restriction, but also as a stimulator of changes and the search for new solutions.

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Rethinking bank business models: the role of intangibles

Cited by 64 publications

References 46 publications

A behavioural theory of the fund management firm

A behavioural theory of the fund management firm

Why does research in finance have so little impact?

The risk of non-compliance in the context of a banking business model

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