IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v68y2015i7p1599-1601.html
   My bibliography  Save this article

Complaints management and bank risk profile

Author

Listed:
  • Gambetta, Nicolás
  • Zorio-Grima, Ana
  • García-Benau, María Antonia

Abstract

This study investigates Spanish financial institutions' (FIs') propensity to amend and rectify errors deriving from complaints that financial services' users file with the Spanish regulator Complaints Service and how this propensity relates to FIs' risk profile. Under the theory that risk management system of a FI includes reputation risk, this study finds that FIs with higher amendment ratio are inefficient, have high liquidity, are highly profitable in the banking business and are sensitive to market risk while FIs that tend to rectify errors have lower loan loss provisions booked and have larger loan portfolios. Both tend to issue a sustainability report. Findings shed light on the risk profile of FIs that consider the reports that regulators issue regarding FIs' customers' complaints and help customers to identify FIs with higher customer orientation.

Suggested Citation

  • Gambetta, Nicolás & Zorio-Grima, Ana & García-Benau, María Antonia, 2015. "Complaints management and bank risk profile," Journal of Business Research, Elsevier, vol. 68(7), pages 1599-1601.
    • Handle: RePEc:eee:jbrese:v:68:y:2015:i:7:p:1599-1601
    DOI: 10.1016/j.jbusres.2015.02.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296315000740
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2015.02.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Estelami, Hooman, 2003. "Sources, characteristics, and dynamics of postpurchase price complaints," Journal of Business Research, Elsevier, vol. 56(5), pages 411-419, May.
    2. Chebat, Jean-Charles & Davidow, Moshe & Borges, Adilson, 2011. "More on the role of switching costs in service markets: A research note," Journal of Business Research, Elsevier, vol. 64(8), pages 823-829, August.
    3. Rose, Caspar & Thomsen, Steen, 2004. "The Impact of Corporate Reputation on Performance:: Some Danish Evidence," European Management Journal, Elsevier, vol. 22(2), pages 201-210, April.
    4. Baker, Thomas L. & Meyer, Tracy & Chebat, Jean-Charles, 2013. "Cultural impacts on felt and expressed emotions and third party complaint relationships," Journal of Business Research, Elsevier, vol. 66(7), pages 816-822.
    5. Fields, L. Paige & Fraser, Donald R. & Wilkins, Michael S., 2004. "An investigation of the pricing of audit services for financial institutions," Journal of Accounting and Public Policy, Elsevier, vol. 23(1), pages 53-77.
    6. Jin, Justin Yiqiang & Kanagaretnam, Kiridaran & Lobo, Gerald J., 2013. "Unintended consequences of the increased asset threshold for FDICIA internal controls: Evidence from U.S. private banks," Journal of Banking & Finance, Elsevier, vol. 37(12), pages 4879-4892.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. David Adeabah & Charles Andoh & Simplice Asongu & Albert Gemegah, 2023. "Reputational risks in banks: A review of research themes, frameworks, methods, and future research directions," Journal of Economic Surveys, Wiley Blackwell, vol. 37(2), pages 321-350, April.
    2. Manuela Gomez‐Valencia & Maria Alejandra Gonzalez‐Perez & Ana Maria Gomez‐Trujillo, 2021. "The “Six Ws” of sustainable development risks," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3131-3144, November.
    3. Gambetta, Nicolás & García-Benau, María Antonia & Zorio-Grima, Ana, 2016. "Data analytics in banks' audit: The case of loan loss provisions in Uruguay," Journal of Business Research, Elsevier, vol. 69(11), pages 4793-4797.
    4. Matteo Cotugno & Valeria Stefanelli, 2023. "Management customer complaints and performance: banks, be careful!," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 27(1), pages 371-412, March.
    5. Semenescu Andreea & Curmei Cătălin Valeriu, 2015. "Using CSR to mitigate information asymmetry in the banking sector," Management & Marketing, Sciendo, vol. 10(4), pages 316-329, December.
    6. Nicolás Gambetta & María Antonia García-Benau & Ana Zorio-Grima, 2017. "Corporate social responsibility and bank risk profile: evidence from Europe," Service Business, Springer;Pan-Pacific Business Association, vol. 11(3), pages 517-542, September.
    7. Simon Zaby & Michael Pohl, 2019. "The Management of Reputational Risks in Banks: Findings From Germany and Switzerland," SAGE Open, , vol. 9(3), pages 21582440198, July.
    8. Nicolás Gambetta & Fernando Azcárate-Llanes & Laura Sierra-García & María Antonia García-Benau, 2021. "Financial Institutions’ Risk Profile and Contribution to the Sustainable Development Goals," Sustainability, MDPI, vol. 13(14), pages 1-15, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. A. Salim & M. Setiawan & R. Rofiaty & F. Rohman, 2018. "Focusing on Complaints Handling for Customer Satisfaction and Loyalty: The Case of Indonesian Public Banking," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 404-416.
    2. Kanagaretnam, Kiridaran & Krishnan, Gopal V. & Lobo, Gerald J., 2009. "Is the market valuation of banks' loan loss provision conditional on auditor reputation?," Journal of Banking & Finance, Elsevier, vol. 33(6), pages 1039-1047, June.
    3. Gambetta, Nicolás & García-Benau, María Antonia & Zorio-Grima, Ana, 2016. "Data analytics in banks' audit: The case of loan loss provisions in Uruguay," Journal of Business Research, Elsevier, vol. 69(11), pages 4793-4797.
    4. Yu-Muo Lee & Jin-Li Hu, 2018. "Integrated Approaches for Business Sustainability: The Perspective of Corporate Social Responsibility," Sustainability, MDPI, vol. 10(7), pages 1-20, July.
    5. Kwon, He-Boong & Lee, Jooh, 2019. "Exploring the differential impact of environmental sustainability, operational efficiency, and corporate reputation on market valuation in high-tech-oriented firms," International Journal of Production Economics, Elsevier, vol. 211(C), pages 1-14.
    6. Russo, Ivan & Confente, Ilenia & Gligor, David M. & Autry, Chad W., 2016. "To be or not to be (loyal): Is there a recipe for customer loyalty in the B2B context?," Journal of Business Research, Elsevier, vol. 69(2), pages 888-896.
    7. Cory Cassell & Emily Hunt & Gans Narayanamoorthy & Stephen P. Rowe, 2019. "A hidden risk of auditor industry specialization: evidence from the financial crisis," Review of Accounting Studies, Springer, vol. 24(3), pages 891-926, September.
    8. Meiying Hua & Pervaiz Alam, 2021. "Audit Quality and Environment, Social, and Governance Risks," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 12(2), pages 50-75, April.
    9. Min Shi & Wei Yu, 2018. "Market Reactions to Supply Chain Management Excellence," JRFM, MDPI, vol. 11(4), pages 1-10, October.
    10. Stoian, Carmen & Mohr, Alex, 2016. "Outward foreign direct investment from emerging economies: escaping home country regulative voids," International Business Review, Elsevier, vol. 25(5), pages 1124-1135.
    11. Nicolás Gambetta & María Antonia García-Benau & Ana Zorio-Grima, 2017. "Corporate social responsibility and bank risk profile: evidence from Europe," Service Business, Springer;Pan-Pacific Business Association, vol. 11(3), pages 517-542, September.
    12. Etumudon Ndidi ASIEN, 2017. "Financial structure signalling to auditors` pricing," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 15(146), pages 207-207.
    13. Kiridaran Kanagaretnam & Gopal V. Krishnan & Gerald J. Lobo & Robert Mathieu, 2011. "Audit Quality and the Market Valuation of Banks’ Allowance for Loan Losses," Accounting Perspectives, John Wiley & Sons, vol. 10(3), pages 161-193, September.
    14. José Luis Sánchez & Ladislao Sotorrío, 2007. "The Creation of Value Through Corporate Reputation," Journal of Business Ethics, Springer, vol. 76(3), pages 335-346, December.
    15. Boone, Jeff P. & Khurana, Inder K. & Raman, K.K., 2009. "Litigation reform, accounting discretion, and the cost of equity," Journal of Contemporary Accounting and Economics, Elsevier, vol. 5(2), pages 80-94.
    16. Pick, Doreén, 2014. "“Switching is easy†—Service firm communications to encourage customer switching," Journal of Retailing and Consumer Services, Elsevier, vol. 21(4), pages 502-509.
    17. Mercedes Rubio‐Andrés & María del Mar Ramos‐González & Miguel Ángel Sastre‐Castillo & Ignacio Danvila‐del‐Valle, 2020. "Exploring sustainability, good governance, and social responsibility in small and medium enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 852-869, March.
    18. Wael Louhichi & Ousayna Zreik, 2015. "Corporate Risk Reporting: A study of The Impact of Risk Disclosure on Firms Reputation," Economics Bulletin, AccessEcon, vol. 35(4), pages 2395-2408.
    19. Rayenda K. Brahmana & Hui‐Wei You & Evan Lau, 2022. "Does reputation matter for firm risk in developing country?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 2110-2123, April.
    20. Asghar Zardkoohi & Eugene Kang & Donald Fraser & Albert A. Cannella, 2018. "Managerial Risk-Taking Behavior: A Too-Big-To-Fail Story," Journal of Business Ethics, Springer, vol. 149(1), pages 221-233, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:68:y:2015:i:7:p:1599-1601. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.