A modified naturalness principle and its experimental tests

Motivated by LHC results, we modify the usual criterion for naturalness by ignoring the uncomputable power divergences. The Standard Model satisfies the modified criterion ('finite naturalness') for the measured values of its parameters. Extensions of the SM motivated by observations (Dark Matter, neutrino masses, the strong CP problem, vacuum instability, inflation) satisfy finite naturalness in special ranges of their parameter spaces which often imply new particles below a few TeV. Finite naturalness bounds are weaker than usual naturalness bounds because any new particle with SM gauge interactions gives a finite contribution to the Higgs mass at two loop order.Comment: 17 pages, 3 figures. v3: final version uploaded, references added, numerical error in the last column of table 1 fixe

Banking regulation towards advisory: the “culture compliance” of banks and supervisory authorities

The financial regulation is moreover based on self-regulation and the coordination of external and internal supervision. This determines an evolution in the role played by the supervisory authorities, and in the manner in which they interact - with and almost advisory function - with the governance bodies of the banks, such as the board of directors, top management and external and internal auditors. The capacity to adequately perform such advisory functions entails the existence of consistent objectives, consistent knowledge and consistent cultural models. Our paper points at cultural gaps as a possible stumbling block in the efficient exchange of information and the sharing of problems and goals among regulators and the industry. We develop a cultural survey based on the application of a text-analysis model to a corpus of reference texts produced by two samples, drawn from among the supervisory bodies and the supervised entities. The empirical survey results reveal numerous fields of cultural differentiation, alongside several important areas in which the orientations of the two parties tend to overlap.Financial Regulation; Banking Culture; Cultural Compliance

M&A and post merger integration in banking industry: the missing link of corporate culture

The intense concentration process taking place in the financial systems of the major countries has attracted substantial attention from stakeholders and academics. The impact of M&A on value creation and efficiency / effectiveness improvements of banks involved appears, on the whole, disappointing and still hard to create benefits for customers. The reason seems to lie in the difficulty of governing a post-merger integration process, which generally requires good governance and management practices, significant experience and attention to cultural profiles and individuals’ behavior. More in detail, management literature recognizes the importance of corporate culture, considered as the set of values and decisions that drive individuals’ behaviors within organizations, for explaining alliance success in M&A operations. In fact cultural clashes could determine conflicts and negative effects, on one hand, on the timing and the effectiveness of the post-merger integration process and, on the other hand, on motivation and turnover of individuals. Set in Italian banking industry, this paper proposes a framework, applied to a representative sample of cases (about 78,2% of market share, based on total assets), for assessing cultural similarity of actors involved in M&A operations. Corporate culture is measured using an ethnographic approach focusing on language as its special artifact. The assessment is based on the definition of some key concepts that are relevant for the banking industry (e.g., competencies, competition, customer, disclosure, human resources, innovation, risk) and on a text-analysis model applied to a corpus of reference texts produced by the surveyed banks three years before M&A. The elaboration of data uses Wordsmith 4, a text analysis software developed by Oxford University. The paper is organized as follows: at first, we analyze and explain how low levels of cultural compatibility before M&A could limit the success of post-merger integration processes of banks. After, we propose and describe the measurement procedure of the cultural fit among bidder and target banks, based on text analysis. Lastly, we conclude with the discussion of the results obtained for each couple of banks involved in M&A and with suggestions for future applications of our framework.Banks; Merger & Acquisitions; Post-merger Integration; Corporate Culture

Evaluating the board of directors of financial intermediaries: competencies, effectiveness and performance

This paper proposes a model for analysing the effectiveness of boards of directors of financial intermediaries. The European Union recommends that companies in the Member States annually evaluate the performance of their boards. The degree of effectiveness of a board should be appreciated taking into account the business structure, ownership and institutional model of the firm, on the one hand, and the characteristics of its board, in terms of its composition, structure and skills, on the other hand. This paper also outlines the specificity of the role played by boards of directors in financial intermediaries, also in the light of the industry standards and regulations, and provides an overview of the board assessment methodologies proposed in literature, or developed by listed companies on the Anglo-saxon markets, with a view to considering their applicability to the financial sector. Lastly, and based on the foregoing, the paper proposes a model for diagnosing the conditions that need to be put into place to ensure the suitability of boards of directors and to evaluate the performance of both the board as a whole and the individual directors.Corporate Governance; Board of Directors; Performance

Coordination & cooperation in financial regulation: Do regulators comply with banking culture?

This paper identifies cultural gaps as a possible stumbling block in the efficient exchange of information and the sharing of problems and goals among regulators and the industry, with respect to the recent innovations introduced in the financial sector, which are orienting the supervisory authorities towards the adoption of new interaction models with the supervised financial intermediares.

Politicians “on board”! Do political connections affect banking activities in Italy?

This paper analyzes the effects of political presence in the boards of directors of cooperative banks. We refer our analysis to all politicians (almost 160.000) belonging to a political body in Italy. Overall, our dataset contains 1.858 board members referring to 127 cooperative banks. Results show that politically connected banks, in which politicians have executive roles in the board of directors, display higher net interest revenues, lower quality of the loans portfolio and lower efficiency relative to a control group of non-connected counterparts. Therefore, in the current debate on the reform of the statutes of the Italian cooperative banks, we argue that the problem is not for politicians to be in the boards but for them to hold executive positions.Cooperative Banks, Politics, Corporate Governance

Corporate culture and shareholder value in banking industry

This paper analyses the casual relationship between corporate culture and shareholder value using a sample of large banks in the French, German, Italian and U.K. banking systems over the 2000 to 2003 period. Firstly, we measure shareholder value using an Economic Value Added estimated through a procedure tailored to account for banking peculiarities. Secondly, we measure corporate culture using language as its particular artifact and developing a cultural survey based on the application of a text-analysis model to a corpus of reference texts produced by the sample of banks. We posit six hypotheses regarding the relationship between corporate culture and bank profits and shareholder value. Our results noticeably show that bank profits and shareholder value benefit from different orientations of banking corporate culture.

Does investor attention influence stock market activity? The case of spin-off deals

This paper investigates empirically the nature of the interactions between mass media, investor attention and the stock market using data from a sample of 16 spin-off deals traded on NYSE and published between 2004 and 2010 in “Wall Street Journal”, the US’s second-largest newspaper by circulation. The results show that: i) the impact of media sentiment on the stock market reactions is enhanced / moderated by the level of attention of investors; ii) individual investors’ attention is grabbed by stocks experiencing high trading volumes on the previous day; iii) high attention could result in downward pressure on stock market returns.Media Sentiment, Investor Attention, Internet Search, Spin-off

Implications of XENON100 and LHC results for Dark Matter models

We perform a fit to the recent Xenon100 data and study its implications for Dark Matter scenarios. We find that Inelastic Dark Matter is disfavoured as an explana- tion to the DAMA/LIBRA annual modulation signal. Concerning the scalar singlet DM model, we find that the Xenon100 data disfavors its constrained limit. We study the CMSSM as well as the low scale phenomenological MSSM taking into account latest Tevatron and LHC data (1.1/fb) about sparticles and Bs \rightarrow {\mu}{\mu}. After the EPS 2011 conference, LHC excludes the "Higgs-resonance" region of DM freeze-out and Xenon100 disfavors the "well-tempered" bino/higgsino, realized in the "focus-point" region of the CMSSM parameter space. The preferred region shifts to heavier sparticles, higher fine-tuning, higher tan {\beta} and the quality of the fit deteriorates.Comment: v4: addendum included at the light of the Dark Matter and Higgs data presented during july 2012 by the Xenon100, ATLAS and CMS collaboration

a methodology for planning a new urban car sharing system with fully automated personal vehicles

Purpose The paper concerns a transport system for pedestrian areas, based on a fleet of fully-automated Personal Intelligent Accessible Vehicles. The following services are provided: instant access, open ended reservation and one way trips. All these features provide users with high flexibility, but create a problem of uneven distribution of vehicles among the stations. A fully vehicle based relocation strategy is proposed: when a relocation is required vehicles automatically move among stations. The paper focuses on a methodology that allows to plan the proposed transport system for wide pedestrian areas. The methodology aims to determine the fleet dimension and the relocation strategy parameters which minimize the system cost. The system cost takes into account the level of service and the efficiency. Relocation strategy parameters define when and among which stations relocations should be performed