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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 general statement that “bank equity is not expensive” can be misleading. The authors argue that market prices should play an important role in bank supervision. Expectations of future profits in prices supply timely information on the viability of a bank.

The authors use the Merton model to show the inapplicability of M&M theorem to banks. The long-run viability of a bank is analyzed with a dividend discount model which allows to compare a bank’s long-term profitability with its overall cost of capital implicit in market prices.

The authors show that the M&M framework cannot be applied to banks neither ex-ante nor ex-post. Ex-ante the authors focus on government guarantees, ex-post they emphasize the risk-shifting phenomena that may increase the overall risk of the bank. The authors show that a bank’s stability cannot be achieved if the market expectations of its future profits stay below the cost of funding.

The authors use simple analytical models. In a future study, some key peculiarities of banks, such as the monetary nature of deposits, should be analytically modelled.

The paper contributes to the debate on capital regulation on the level of capital requirements and the instruments to assess the viability/stability of banks.

This paper uses simple models to assess analytically the key issues in the debate on banks’ capital regulation.

Resurgent interest in the life and work of the Italian Cambridge economist Piero Sraffa is leading to New Directions in Sraffa Scholarship. This chapter introduces readers to some of these developments. First and perhaps foremost is the fact that as of September 2016 Sraffa’s archival material has been uploaded onto the website of the Wren Library, Trinity College, Cambridge University, as digital colour images; this chapter introduces readers to the history of these events. This history provides sharp relief on the extant debates over the role of the archival material in leading to the final publication of Production of Commodities by Means of Commodities, and readers are provided a brief sketch of these matters. The varied nature of Sraffa scholarship is demonstrated by the different aspects of Sraffa’s intellectual legacy which are developed and discussed in the various entries of our Symposium. The conclusion is reached that we are on the cusp of an exciting phase change of tremendous potential in Sraffa scholarship.

The primary purpose of this bibliography is to provide a compilation of trust‐related articles from the disparate fields in which trust has been explored (from psychology to sociology and information systems to marketing. Years in its compilation and (still incomplete), it provides a listing that is not easily obtained even with the search capability of the internet and electronic library catalogues. Its secondary purpose is to highlight which articles are used most by marketing‐related trust researchers both in general and within the submissions to the special issue.

The bibliography was compiled via search and analysis of databases, reference lists, bibliographies, internet searches, library catalogues, university web pages, researchers' curricula vitae (inter alia) for conference papers, journal articles, and books that use trust as a key concept within the work.

The paper finds that there is a plethora of material on trust, but spread across several thousand sources. No single comprehensive collection exists and the need for such a compilation is of value to researchers.

The paper is an invaluable source of references on trust from across a wide range of academic disciplines.

The main contribution of the paper is the cross‐disciplinary nature of the compilation of reference materials.