Mihai-Yiannaki, Simona

Undoubtedly, the nature of the relationships between business and risk factors in one country or another does not fit exactly into a "model" nor does it have a pure placebo effect. Yet, models' simplicity may appeal 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 balance scorecard. This new model of a 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. The application of such a 'balanced-scorecard' comes from the author's experience as a banker financing various SMEs industries, as a bank consultant on risk management as well as primarily from the results of a survey performed on a sample of 48 Romanian and Cypriot SMEs, equal-proportionally selected from the area of trading, manufacturing, and services. The results of this case study show, coincidently or not, that there is a significant improvement of the financial performance of the SMEs that employed this model compared to those that did not. The monitoring period: 11/2009-06/2010 was employed as a representative one for the latest global financial crisis which affected the entire European Union region, as well.

The Chinese Central Bank decided on June 8 and July 6, 2012, on the duplication and consecutive cut of the deposit and loan interest rates, together with the simultaneous loosening of the interest rate floating range of their financial institutions. Unquestionably, these measures resulted in a drastic change of the operating strategies of the whole banking system, for both nationalized and the private commercial banks. The article follows up on the causes and effects of these decisions in the Chinese banking arena, predicting a higher possible level of bad loans and followed by a higher systemic risk due to the three major banks’ reactions and copy-cat decisions in fixing interest rates. The research methodology uses the GARCH (1,1) model and the VaR to identify the way the interests are adjusted and study if this decision indicated a real liberalization or rather a controlled interest rate change by the authorities. Eventually, the Chinese interest rate liberalization brought good and bad news to the economy, while the essence remains in how such liberalization is handled and what is intended for the entire economy.

Under the premises that the U.S. Exchange Traded Funds (ETFs) hold over 70% of the ETFs’ World market, it seems that the European ones have been either under-researched or less demanded. This study provides some insights into the performance of two ETFs hubs, holding over 80% of the European ETFs activity, namely those operating in Luxembourg and Ireland, due also to their tax similarities. Following an updated literature review on the topic, the paper compares these two ETFs hubs by using secondary data publicly available, interpreted under a framework of previously identified performance methods: Tracking Error, Jensen's alpha and Modigliani- M2 measure of performance. This methodology completes the descriptive statistics analysis, while aiming at answering two hypotheses. The first hypothesis states that the Tracking Error of ETFs compared to their benchmark or market indexes equals zero, which is confirmed by the study. The second hypothesis suggests that these particular ETFs do not present significant alphas, which is partially confirmed. Moreover, the second hypothesis is tested not only against various features of these funds ‘benchmarks, but also from risk measurement perspectives, while employing correlation significance between the two countries ETFs. Overall, it appears that from the risk adjusted performance perspective, the ETFs domiciled in Luxembourg outperform the Irish ones, leading also to potential M&As in this industry.

Purpose: This paper aims to highlight for the first time, creativity's vital role in a new approach in the higher education world which can improve the current university instructional strategies post financial crisis. Design/methodology/approach: The paper offers a theoretical framework which has emerged from literature review and personal business and educational experiences of the authors. It seeks to provide synthetically some answers/"solutions", focusing on a three dimensional framework: where to play the game of creativity; how to deliver creativity to business students, meaning by what structures and methods; and how to win in implementing this game. Findings: Many researchers appeared to focus on making their findings applicable to the entire education system paying little attention to issues specific to the business education sector. Succinctly, the focus of the papers is on "how to do it" part, which provides several realistic insights on how to connect communities into the game of creativity. Other methods required relate to: balancing creativity with core essentials; promoting excellence and sustainability; networking between students; faculty, management and community; improving learning environment; developing staff; teaching; learning competencies and programme curricula under an integrated service vision; anticipating educational future trends in networking; and building creative climates and partnerships. Originality/value: The paper's conclusions and recommendations present a practical set of good practices through the explicit and implicit identification of core characteristics for creativity in higher education. Eventually, the first mission in wanting to be creative is to really comprehend the problem, knowing all ways to approach it.

The chapter synthesizes extant interdisciplinary literature, by putting together a combination of relationship management theories as well as banking, economics, and finance theories, and blends this with findings from an ethnographic research platform to discuss the critical variables in the development of Bank-SME relationships. In addition, the chapter considers the effect of the recent economic crisis on the Bank-SME relationship. It can be seen that few banks looked inside their relationship with their SME customers as a means of redressing the crisis' effect and this has detrimental effects on their longterm performance. As a consequence, the chapter proposes recommendations so as to reduce the crisis negative impact. Moreover, it highlights that the new developments in the technological environment, i.e. social media, can be used to strengthen the Bank-SME relationship's success and is especially pertinent in such times of financial duress as it can enhance the communication mode of the dyad.

Based mainly on secondary research analysis this case study tracks down foreign exchange risk as exposure during the recent financial crisis (March 2007 to February 2010). The author picked up a value of €100,000 traded by a Cypriot SME importer with a local bank on a monthly basis under either a forward contract or a spot transaction against other three hard currencies. Methodologically, the research uses Sharpe ratio as proxy for either hedge or non-hedge options, ignoring any intermediary hedging alternatives and transaction costs. Then, the hedging strategy proves it backs up the 'unbiased predictor' preconception and then validates it against a weak and a semi-strong efficient market hypothesis theory. Also, I found a dependency on non-hedging more to the currency depreciation, the reduction of the risk free rates, the volatility of the FWD and actual future spot prices in the market, as well as longer time periods.