Shadow Bank Systems in European Affairs: Measuring Capability of Fraud Risk in Special Reports
Keywords:
Keywords: Accountability Methodology, Agile Marketing Capabilities, Performance Audit, Shadow Bank System, Special Reports and Up Grade Procedure Services.
Abstract
In the last twenty years, the European Court of Auditors has placed increasing importance on the production of “special reports” examining the economy, efficiency and effectiveness of EU spending. This institutional focus on performance audit, alongside traditional financial and compliance audit, has occurred at a time when the European Union is increasingly evaluating its own policies and programmes, under political pressure to demonstrate their added value with shadow bank systems.
The rapid growth of the market-based financial system since the mid-1980s changed the nature of financial intermediation in the European States profoundly. Within the market-based financial system, “shadow banks” are particularly important institutions. Shadow banks are financial intermediaries that conduct maturity, credit, and liquidity transformation without access to central bank liquidity or public sector credit guarantees. Examples of shadow banks include finance companies, asset-backed commercial paper (ABCP) conduits, limited-purpose finance companies, structured investment vehicles, credit hedge funds, money market mutual funds, securities lenders, and government-sponsored enterprises.
This intermediation chain binds shadow banks into a network, which is the shadow banking system. The shadow banking system rivals the traditional banking system in the intermediation of credit to households and businesses.
This study contributes theoretically to research and empirically to management practice of agile marketing concepts in digital trsformation and international business context, in order to develop effective competencies of speed, flexibility, and customer responsiveness in marketing strategies and operations.
References
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AGEA E&Y Financial Letters 2019.
AGEA PwC Audit Reports 2011-2013.
AGEA PwC Special Report 2014.
Asseraf Y., Lages L. F. & Shoham A. (2018). Assessing the drivers and impact of international marketing agility. International Marketing Review.
Barkema H.G., Baum J.A. & Mannix E.A. (2002). Management challenges in new time. Academy of Management Journal, 45(5): 916-930.
Barrales-Molina V., Martinez-Lopez F.J & Gazquez-Abad J.C. (2014). Dynamic marketing capabilities: Toward an integrative framework. International Journal of Management Review, 16(4): 397-416.
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Caiden N. (1992), Public service professionalism for performance measurement and evaluation. Public Budgeting & Finance.
Chaffey D. (2010). Applying organizational capability models to assess the maturity of digital-marketing governance. Journal of Marketing Management, 26(3-4): 187-196.
Chen Y., Wang Y., Nervo S., Benitez-Amado J. & Kou G. (2015). IT capabilities and product innovation performance: The roles of corporate entrepreneurship and competitive intensity. Information & Management, 52(6): 643-657.
Colella A., Griffin A. E. C., Gaparaju S. (2000), Newcomer and organizational socialization tactis: An interactionist perspective.
Cortese G., Del Carlo A. (2008), “La selezione del personale. Dalla ricerca all’inserimento in azienda: come scegliere il candidato migliore”, Raffaello Cortina Editore, Milano, 2008.
DeNichilo N. (2013), Le Metodologie innovative di reclutamento. Tesi Magistrale Università degli studi Roma Tre.
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Eckstein D., Goellner M., Blome C. & Henke M. (2015). The performance impact of supply chain agility and supply chain adaptability: the moderating effect of product complexity. International Journal of Production Research, 53(10): 3028-3046.
Ellinas A. & Suleiman E. (2008), The Reforming the Commission: between modernization and bureaucratization, Journal of European Public Policy.
Grewal R. & Tansuhaj P. (2001). Building organizational capabilities for managing economic crisis: The role of market orientation and strategic flexibility. Journal of Marketing 65(2): 67-80.
Hagen B., zucchela A. & Ghauri P.N. (2018). From fragile to agile: marketing as a key driver of entrepreneurial internationalization. International Marketing Review.
Harber M., Marx B. and De Jager P. (2020), The perceived financial effects of mandatory audit firm rotation. Journal of International Financial Management and Accounting.
Homer J. and Stephenson P. (2012), Theoretical Perspectives on Approaches to Policy Evaluation in the EU: the Case of Cohesion Policy in Public Administration.
Lee O.K., Sambamurthy V., Lim K.H. & Wei K.K. (2015). How does IT ambidexterity impact organizational agility? Information Systems Research 26(2): 398-417.
Lu Y. & Ramamurthy K. (2011). Understanding the link between information technology capability and organizational agility: An empirical examination. MIS Quarterly, 931-954.
Knill C., Balint T. & Bauer M.W. (2008), Study on behalf of the European Parliament. Reform of European Congress 2008.
Köhler A., Ratzinger-Sakel N. and Theis J. (2020), The effects of key audit matters on the auditor's report's communicative value: Experimental evidence from investment professionals and non-professional investors. Accounting in Europe.
Manes Rossi F., Brusca I. and Condor V. (2020), In the pursuit of harmonization: comparing the audit systems of European local governments. Public Money & Management.
March J.G. and Olsen J.P. (1995), Democratic Governance.
Mendez C., Bactler J. (2011) Administrative Reform and Unintended Consequences: An Assessment of the EU Cohesion Policy Audit Explosion. Journal of European Public Policy.
Power M. (with Yves Gendron) (2015), Qualitative research in auditing: a methodological roadmap. Auditing: A Journal of Practice and Theory (2015) 34(2): 147-165.
Rolle L. (2010), “ Risorse umane e benchmarking. Prassi eccellenti in aziende innovative”, Franco Angeli, Milano, 2010.
Ravichardran T. (2018). Exploring the relationship between IT competence, innovation capacity and organizational agility. Journal of Strategic Information System, 27(1): 22-42.
Spaventa L. (2008), Una crisi della nuova finanza. Giuffrè Editore.
Sposato P. (2010), “Valutazione e selezione del personale. Come scegliere e valorizzare il tuo staff ideale.”, Bruno Editore, Roma, 2010.
Teece D., Peteraf M., & Leih S. (2016). Dynamic capabilities and organizational agility: Risk, uncertainty, and strategy in the innovation economy. California Management Review, 58(4): 13-35.
Van der Meer F. and Edelebos J. (2006), “Evaluation in multi-actor policy process: Accountability, learning and cooperation” in Evaluation.
Van Wolleghem P.G. (2020), Does administrative capacity matter? The absorption of the European Fund for the integration of migrants. Policy Studies.
AGEA E&Y Financial Letters 2019.
AGEA PwC Audit Reports 2011-2013.
AGEA PwC Special Report 2014.
Asseraf Y., Lages L. F. & Shoham A. (2018). Assessing the drivers and impact of international marketing agility. International Marketing Review.
Barkema H.G., Baum J.A. & Mannix E.A. (2002). Management challenges in new time. Academy of Management Journal, 45(5): 916-930.
Barrales-Molina V., Martinez-Lopez F.J & Gazquez-Abad J.C. (2014). Dynamic marketing capabilities: Toward an integrative framework. International Journal of Management Review, 16(4): 397-416.
Bock A.J., Opsahl T., George G. & Gann D.M. (2012). The effects of culture and structure on strategic flexibility during business model innovation. Journal of Management Studies, 49(2): 279-305.
Caiden N. (1992), Public service professionalism for performance measurement and evaluation. Public Budgeting & Finance.
Chaffey D. (2010). Applying organizational capability models to assess the maturity of digital-marketing governance. Journal of Marketing Management, 26(3-4): 187-196.
Chen Y., Wang Y., Nervo S., Benitez-Amado J. & Kou G. (2015). IT capabilities and product innovation performance: The roles of corporate entrepreneurship and competitive intensity. Information & Management, 52(6): 643-657.
Colella A., Griffin A. E. C., Gaparaju S. (2000), Newcomer and organizational socialization tactis: An interactionist perspective.
Cortese G., Del Carlo A. (2008), “La selezione del personale. Dalla ricerca all’inserimento in azienda: come scegliere il candidato migliore”, Raffaello Cortina Editore, Milano, 2008.
DeNichilo N. (2013), Le Metodologie innovative di reclutamento. Tesi Magistrale Università degli studi Roma Tre.
DeNichilo S., A. Pedone (2009), The efficiency of the tax systems in Europe. Working paper edit Università degli studi La Sapienza di Roma.
DeNichilo S., C. Regogliosi (2011), L’internal auditing in un organismo di diritto pubblico: il caso Agea. Working paper edit Università degli studi Roma Tre.
DeNichilo S. (2020a), Public Choice in European Affairs: Measuring Election Model. European Journal of Social Impact and Circular Economy pp 19-37. Published by University of Turin.
DeNichilo, S. (2020b). Shadow Bank System in European Affairs: Measuring Capability. Presentation discussed paper at European Association for Banking and Financial Law. Thematic purposed by Bankitalia Eurosistema “What to regulate? How to regulate? Who should regulate?” November 2020 Milan.
DeNichilo S. (2020c), How Do Earnings Management Practices Distract International Environmental Funds? Empirical Evidence of European Development Funds in Italy. GeoProgress Journal vol.7, i. 1, 2020. Pag. 87-101.
DeNichilo S. (2021a), Management Accounting in European Finance for Smart Tourism and Sustainable Destination: How Organizations Deficiency? Pp 45-74. Published by University of Turin. http://www.ojs.unito.it/index.php/ejsice/index.
DeNichilo S. (2021b), Management Accounting in European Affairs: a Memorandum Methodology for Formalize Audit Evidence. Corporate Governance and Research & Development Studies 1/2021. DOI: http://dx.doi.org/10.3280/cgrds1-2021oa10445.
Eckstein D., Goellner M., Blome C. & Henke M. (2015). The performance impact of supply chain agility and supply chain adaptability: the moderating effect of product complexity. International Journal of Production Research, 53(10): 3028-3046.
Ellinas A. & Suleiman E. (2008), The Reforming the Commission: between modernization and bureaucratization, Journal of European Public Policy.
Grewal R. & Tansuhaj P. (2001). Building organizational capabilities for managing economic crisis: The role of market orientation and strategic flexibility. Journal of Marketing 65(2): 67-80.
Hagen B., zucchela A. & Ghauri P.N. (2018). From fragile to agile: marketing as a key driver of entrepreneurial internationalization. International Marketing Review.
Harber M., Marx B. and De Jager P. (2020), The perceived financial effects of mandatory audit firm rotation. Journal of International Financial Management and Accounting.
Homer J. and Stephenson P. (2012), Theoretical Perspectives on Approaches to Policy Evaluation in the EU: the Case of Cohesion Policy in Public Administration.
Lee O.K., Sambamurthy V., Lim K.H. & Wei K.K. (2015). How does IT ambidexterity impact organizational agility? Information Systems Research 26(2): 398-417.
Lu Y. & Ramamurthy K. (2011). Understanding the link between information technology capability and organizational agility: An empirical examination. MIS Quarterly, 931-954.
Knill C., Balint T. & Bauer M.W. (2008), Study on behalf of the European Parliament. Reform of European Congress 2008.
Köhler A., Ratzinger-Sakel N. and Theis J. (2020), The effects of key audit matters on the auditor's report's communicative value: Experimental evidence from investment professionals and non-professional investors. Accounting in Europe.
Manes Rossi F., Brusca I. and Condor V. (2020), In the pursuit of harmonization: comparing the audit systems of European local governments. Public Money & Management.
March J.G. and Olsen J.P. (1995), Democratic Governance.
Mendez C., Bactler J. (2011) Administrative Reform and Unintended Consequences: An Assessment of the EU Cohesion Policy Audit Explosion. Journal of European Public Policy.
Power M. (with Yves Gendron) (2015), Qualitative research in auditing: a methodological roadmap. Auditing: A Journal of Practice and Theory (2015) 34(2): 147-165.
Rolle L. (2010), “ Risorse umane e benchmarking. Prassi eccellenti in aziende innovative”, Franco Angeli, Milano, 2010.
Ravichardran T. (2018). Exploring the relationship between IT competence, innovation capacity and organizational agility. Journal of Strategic Information System, 27(1): 22-42.
Spaventa L. (2008), Una crisi della nuova finanza. Giuffrè Editore.
Sposato P. (2010), “Valutazione e selezione del personale. Come scegliere e valorizzare il tuo staff ideale.”, Bruno Editore, Roma, 2010.
Teece D., Peteraf M., & Leih S. (2016). Dynamic capabilities and organizational agility: Risk, uncertainty, and strategy in the innovation economy. California Management Review, 58(4): 13-35.
Van der Meer F. and Edelebos J. (2006), “Evaluation in multi-actor policy process: Accountability, learning and cooperation” in Evaluation.
Van Wolleghem P.G. (2020), Does administrative capacity matter? The absorption of the European Fund for the integration of migrants. Policy Studies.
Published
2022-12-24
How to Cite
de Nichilo, S. (2022). Shadow Bank Systems in European Affairs: Measuring Capability of Fraud Risk in Special Reports. European Journal of Social Impact and Circular Economy, 3(3), 11-19. https://doi.org/10.13135/2704-9906/6720
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