The financial turmoil has put into question the effectiveness of the existing regulatory framework for banks. Regulators reacted to the crisis by imposing new capital requirements to achieve both higher and better quality capital, but the theoretical/conceptual framework behind banks' regulation...

It has been argued that higher capital requirements are not expensive for the banking system, by exploiting a renewed edition of a standard argument from corporate finance, the Modigliani-Miller theorem (1958 and 1963). However, the M&M model must be carefully analysed before endorsing the...

It has been often argued that higher capital requirements are not costly for the banking system, by exploiting a renewed edition of a standard argument from corporate finance, the Modigliani-Miller theorem (1958 and 1963). However, the M&M model must be carefully analysed before endorsing the...

Purpose The paper aims to investigate whether the value of banks is affected by their financing policies. Higher capital requirements have been invoked by exploiting a renewed edition of the Modigliani–Miller (M&M) theorem. This paper shows the limits of this claim by highlighting that the...

The purpose of this note is to present an analytical model that demonstrates that the supposed contradiction between value creation for the shareholders and for the various stakeholders can be reconciled. Under a stochastic model are in fact used the latest and most advanced business models...

The academic debate on the theory of the firm has been monopolized for a long period by the contraposition between the shareholders model and the stakeholders model. Jensen (2001) introduced the concepts of "enlightened value maximization" and "enlightened stakeholders theory", recognizing the...