BES

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Finance from the NOVA – School of Business and Economics

(Un)ethical leadership, organizational identification and sensemaking: the BES case and its impact on employees

This paper provides an ongoing analysis to one of the biggest ethical and financial scandals in Portugal – Banco Espírito Santo (BES). BES was considered one of the three best banks but it went bankrupted and its employees were transferred to a new entity – Novo Banco. This study was conducted in order to provide an understanding of the employees’ side, which has been forgotten so far. An ethical scandal (sensebreaking) creates ambiguity and uncertainty which triggers new sensemaking processes in order to understand and derive meaning from the new reality. The methodology followed was semi-structured interviews to employees both from the branches and the central services. We found evidence that in organizations with strong identification, unethical behavior has a significant impact on followers’ – the new process of sensemaking is particularly important in this situation because employees suffer more from the disruption of their reality.

Internationalization strategy: HOLOS Mobile - Angola

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Management from the NOVA – School of Business and Economics

Risco reputacional na banca portuguesa

A reputação é intangível, pode mudar durante o tempo (para melhor ou pior), é difícil de definir, é difícil de medir e difícil de ser traduzida em valor. Mas a maioria dos stakeholders e CEOs concorda que a reputação é dos riscos emergentes mais preocupantes com que as organizações se deparam - pode explicar o porquê dos clientes escolherem um produto ou serviço e pode determinar o sucesso ou o insucesso da organização. O objetivo desta dissertação é o estudo da reação do mercado de ações ao anúncio de eventos de risco operacionais na banca portuguesa. Assim, compreender quais os eventos operacionais que têm um impacto positivo ou negativo sobre a imagem/reputação de um Banco. A metodologia usada nesta dissertação é baseada numa amostra de 114 eventos operacionais ocorridos em Bancos portugueses, nomeadamente, o Banco Espírito Santo (BES), o Banco Comercial Português (BCP), o Banco Português de Investimento (BPI) e o Banif. Os eventos operacionais ocorreram no período de 29 de Outubro de 2007 a 07 de Abril de 2014. Com base nos resultados obtidos, a variação das cotações de mercado, é possível perceber se os efeitos foram positivos ou negativos para a imagem das instituições financeiras e, assim construir matrizes que ilustram o impacto no valor das instituições quando ocorre um evento operacional.

The good, the bad and the ugly: The fall and resolution of Banco Espírito Santo

This case study – and accompanying teaching note – briefly describes the history of the Espírito Santo family, a banking dynasty who led one of Portugal’s leading economic and financial groups, along with its “crown jewel”, Banco Espírito Santo. It chronicles how the corporate governance issues at BES allowed the family to exploit the bank, its shareholders and its customers, so as to support its unprofitable non-financial businesses. This left the bank in a poor financial situation, which deteriorated beyond control, leaving regulators – whose actions are also analysed here – with no alternative, amidst a severe liquidity crisis, but to apply a resolution measure, pinning large losses on junior bondholders and shareholders before recapitalising the bank.

The price of honour: The corporate governance of Banco Espirito Santo

The Price of Honour is a case study, supported with teaching notes, which describes the events and circumstances surrounding the implosion of one of Portugal’s most systemically important banks - Banco Espírito Santo (BES). The case focuses on BES’s corporate governance and how the Espírito Santo family’s tight control of the bank led to its exploitation. Although the situation caught the attention of the bank’s supervisors, their untimely actions could not prevent BES’s financial health from crumbling only two months after a rights issue. With little leeway, the supervisors put forward a resolution which dramatically ended the bank’s centennial legacy.