NFGS I: The 10 Research Areas

Does the financial sector in Denmark and the other Nordic countries create any economic wealth for society? If yes, can growth be achieved without accepting any additional risks from a governmental perspective?

Researchers: 
Arturo Bris (IMD)
Marc Steffen Rapp (CBS)

Tools/Remarks:  
Quantative study
20-30 OECD countries as reference pool
IMD Competitiveness Study
European countries (mostly EU, Switzerland, and UK) countries as a reference pool
Firm-level data for European firms

Scope and output:
Ranking of Nordic and Baltic Financial sectors
Impact study on financial structure and its impact on economic growth 
Ranking of Nordic countries with respect to financial structure 
Academic papers for journal publication
Impact paper
Management summary with policy implications

Research questions:
What is the role of financial structure for macroeconomic growth?
Is the financial sector providing any competitiveness from a macroeconomic perspective?
What is the financial structure of Denmark and other Nordic countries compared to other Nordic/European countries? What are the recent developments (compared to other European countries)
Does financial structure have an impact on financing decisions of the corporate sector? 
What explains investment behaviour of the large European firms during the recent  financial crises?

What policy steps should be taken, if any, to ensure that monetary programmes are becoming more effective in the financial sector?

Researcher:
Niels Westergård-Nielsen (CBS)
Thomas Poulsen (CBS)
Signe Krogstrup (Senior Advisor)

Tools/Remarks:
Quantative study: (1) Detailed register data on firm level for Danish banks and non-financial firms. (2) Detailed register data on both individual and firm level for Danish financial firms.
Policy review among Nordic countries

Scope and output:
Academic paper aimed at publication in finance journal.
Management summary with policy implications.
Newspaper article.
Academic paper aimed at publication in corporate governance journal.
Policy paper and impact assessment for the financial sector.

Research questions:
What is the relationship between firm growth and access to bank finance?
What role does the Danish co-determination model play regarding trust, commitment and productivity?
What is the impact of negative or zero interest environments?

Competitive landscape and impact of new regulations in Europe
What regulatory steps need to be taken in general to effectively deal with different aspects of a financial crisis in Europe and then to develop policy proposals for improving the regulatory (and treaty) framework upon which EU activity in financial regulation is built?

Researcher:
Georg Ringe (CBS/Oxford)
Caren Nielsen (CBS)

Tools/Remarks:
Meta study/benchmarking. 
Review of Regulatory Competition in the EU/globally.
Redesigning EU financial regulation.
Benchmarking and comparison of different regulatory options.
Legal, political and economic analysis of Brexit and the implications for the EU financial sector, including the Nordics.
Review of regulatory trends in Europe.
Review of current legislation.

Scope and output:
Paper for journal publication
Academic paper – explore extent of arbitrage and competition
Policy recommendations – assessing the strengths and weaknesses of the Nordic financial sector
Policy papers, blogs, public appearances 
Academic paper
To develop policy proposals for improving the regulatory (and treaty) framework upon which EU activity in financial regulation is built

Research questions:
What is the effect  of regulatory competition on financial regulation? What options exist to respond to the problems, e.g. threat to financial stability
Is global competition for financial services affecting the Nordic region? In which parts? If so, what can we do about it? 
What is the effect of Brexit on the current setup of the EU financial market?

Nordic financial corporate governance model
What role, if any, has the Nordic corporate governance model for including employees and their representatives in corporate decision making played in the long-term prosperity of the sector and its responsibility towards society and employees?

Researchers:
Thomas Poulsen (CBS)
Therese Strand (CBS)
Jesper Lau Hansen (KU)
Tools/Remarks:
Highlight particular differences and consequences.
Analysis of different international and European corporate governance models to understand if there is a Nordic model.
Analysis of the financial sector to see what corporate governance models are used in the Nordic countries.
Quantitative study: Detailed register data on both individual and firm level for Danish financial firms.

Scope and output:
Benchmarking the Nordic corporate governance model against other alternatives
Paper
Policy recommendations
Academic paper aimed at publication in corporate governance journal

Research Questions:
What role does the Nordic Corporate Governance Model play for the prosperity of the whole Nordic financial sector and its responsibility towards society and employees? What changes in this model can be identified – what are the tendencies for change and possible consequences for employees/companies/sector?
Is there a Nordic Governance model – and if yes, can it be used in the financial sector?
How does the Nordic governance model influences Nordic finance?
What role does the Danish co-determination model play regarding trust, commitment and productivity?

How has this paradigm shift impacted the regulatory framework, its scope, its coherence, its effects and what are the considerations behind it? What are the results of the new principles and framework of financial corporate governance, its development and the context of general financial regulation? What are the implications of the new role and tools of the Danish Financial Supervisory Authority, the new framework for supervisory organization and its effects on the relationship between supervisor/state and financial companies?
Researcher:
Hanne Birkmose (AU)
Nis Jul Clausen (SDU)
Lars C. Ohnemus (CBS)
Tools/Remarks:
Review of current legal framework
Review of past and current legal framework
Survey of the Danish banks
Scope and output:
Review of current framework, organizational set-up, policy recommendations based on research findings
Academic Paper
Policy recommendation based on research findings
Survey results and report about the relationship between the stakeholders
Research questions:
Does National compliance and Regulation have any material impact including on executives and employees?
What is the relationship between the Danish FCA and Danish directors, including board members?
What are the implications of the new role and tools of the Danish Financial Supervisory Authority, the new framework for supervisory organization and its effects on the relationship between supervisor/state and financial companies?
How has this paradigm shift (after the 2008 financial crisis) impacted the regulatory framework, its scope, its coherence, its effects and what are the considerations behind it?
What are the results of the new principles and framework of financial corporate governance, its development and the context of general financial regulation?ography text for your team member here. You can also remove this text if you’d rather just have a name and title.

Financial benchmarks, risk, and reward in the banking sector
What consequences could ROE targets have on the Nordic financial sector? How would alternative benchmarks stimulate sound and sustainable financial markets in the Nordic countries?

Researchers:
Johan Kuhn (CBS)
Therese Strand (CBS)
Caren Nielsen (CBS)
Tools / Remarks:
Quantative study

Scope and output: 
Paper publication showing the link between financial benchmarks, return expectations and risk profile for financial institution
Position paper

Research Questions:
Is there any link between financial benchmarks, risk and reward programs?
What consequences could ROE targets have on the Nordic financial sector? Could these targets lead to negative behaviour from a risk management plus shareholder perspective and would one or several new benchmarks be more relevant both from an internal and external perspective?

Does the Nordic banking sector have any competitive advantages compared to other players in Europe? What business model can be applied in a low or zero interest environment and what would be the consequences from a business and regulatory perspective?

Researchers:
Lars Ohnemus (CBS)
Georg Ringe (CBS)

Tools/Remarks:
Industry analysis

Scope and output:
Paper
To be discussed

Research Questions:
Does the Nordic and in particular Danish banking sector have any competitive advantages compared to other players in Europe?
Can any of these advantages be used to build up a leading position inside the EU and what are the major competitor disadvantages or inappropriate framework conditions that would have to be addressed in the future for interregional, regional and local banks?
What business model can be applied in a low or zero interest environment and what would be the consequences from a business and regulatory perspective?

Can the Nordic countries and in particular Denmark become a base for a leading asset management industry? Can price and margin pressure be solved through product innovation?

Researchers:
Peter Loft
Torben Juul Andersen
Bjørn Preuss (CBS)

Tools / Remarks:
Paper
Comparative analysis / industry feedback

Scope and output:
Critical analysis of current tax environment
A benchmark report about the US versus Nordic asset management industry
Academic paper aimed at publication in corporate governance journal.

Research Questions:
Is the tax framework conditions right for exporting financial services?
The Nordics and specifically Denmark has asset managers with a strong IT background as well as a remarkable track record. However, these asset managers face price pressure from international players and the trend of investing in low cost index funds. Based on the comparison between the Nordic and US asset management sector this study wants to examine the impact.

Can current Danish and Nordic banking strategies be maintained and what will the impact be of a low interest margin environment on current players? Will banks, as part of this process, be forced to move a part of their activities into advisory activities and be an intermediary of equity to small and medium-sized companies through new equity and crowdfunding models?

Researchers:
Bersant Hobdari (CBS)
Marc Steffen Rapp (Marburg)

Tools / Remarks:
Review paper
Mix of quantitative and qualitative research
Quantitative research

Scope and output:
A benchmark report aiming at publication in a review paper in a focused journal.
Academic paper aimed at publication in economics or finance journal.
Management summary with policy implications.
Possibly development of a more practitioner-oriented paper, outlining the conclusions and implications of the analysis.

Research Questions:
SMEs worldwide struggle to raise capital. There are, however, significant cross-country differences in the level of difficulties SMEs face in identifying and accessing sources of funding. Taking a US vs. EU vs. Nordic countries perspective, this paper seeks to understand barriers to access to funding and identify elements conducive to easing financing constraints.
What informational constraints do SMEs face in the market for financing? How is SME funding risk allocated? What policies could be put in place to mitigate actual and perceived constraints?
Will banks, as part of this process, be forced to move a part of their activities into advisory activities and be an intermediary of equity to small and medium-sized companies through new equity and crowdfunding models?