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Preferred shares in Spain: a case of financial predation?

Author

Listed:
  • Olivier Mesly

    (Université du Québec en Outaouais. Department of Administrative Sciences, 2nd floor. 101 Saint Jean Bosco Street - Gatineau (Quebec), Canadá J8X 3X7.)

  • María del Carmen de la Orden de la Cruz

    (Universidad Rey Juan Carlos - Facultad de Ciencias Jurídicas y Sociales. Despacho 287, Edificio Departamental-Campus Vicálvaro Paseo Artilleros s/n. 28032 Madrid, España.)

  • Juan Francisco Núñez Grapain

    (Université de Sherbrooke - Faculté d’administration. Local K1-4330 - 2500 Boul. de l’Université. Sherbrooke (Québec) Canadá J1K 2R1.)

Abstract

Following on the 2009 financial crisis in Spain, the way financial products are traditionally sold has been questioned, especially considering cases of fraud or deceit. Using the consolidated model of financial predation CMFP and the Delphi method, we analyze the commercialization of preferred shares in Spain during 2009. Results suggest no evident cases of financial predation according to CMFP model, but confirm the presence of dysfunctional practice and a sequence of adverse circumstances. We identify precautionary measures to the risks of financial predation such as the role of Spanish authorities in strengthening marketing rules of financial products and improving financial literacy on investors.

Suggested Citation

  • Olivier Mesly & María del Carmen de la Orden de la Cruz & Juan Francisco Núñez Grapain, 2014. "Preferred shares in Spain: a case of financial predation?," Economía, Instituto de Investigaciones Económicas y Sociales (IIES). Facultad de Ciencias Económicas y Sociales. Universidad de Los Andes. Mérida, Venezuela, vol. 39(37), pages 77-99, January-J.
    • Handle: RePEc:ula:econom:v:39:y:2014:i:37:p:77-99
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Preferred shares; marketing of hybrid financial products; financial predation; Delphi method.;
    All these keywords.

    JEL classification:

    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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