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http://bura.brunel.ac.uk/handle/2438/27216
Title: | Does being a responsible bank pay off? Evidence from the COVID-19 pandemic |
Authors: | Kara, A Ongena, S Yildiz, Y |
Keywords: | COVID-19 pandemic;market performance;responsible banking;stakeholder vs. shareholder value |
Issue Date: | 6-Sep-2023 |
Publisher: | Swiss Finance Institute |
Citation: | Kara, A., Ongena, S. and Yildiz, Y. (2023) 'Does being a responsible bank pay off? Evidence from the COVID-19 pandemic', Swiss Finance Institute Research Paper, Paper No. 23-80, pp. 1 - 42, Available at/; https://ssrn.com/abstract=4565590 or https://doi.org/10.2139/ssrn.4565590. |
Series/Report no.: | Swiss Finance Institute Research Paper;No. 23-80 |
Abstract: | We investigate whether banks’ initial responses during the first wave of the COVID-19 pandemic in supporting their customers, communities, and governments were perceived as value-enhancing by investors. Using a unique responsible banking measure for a sample of the largest US and European banks, we find a negative relationship between responsible bank behavior and stock market performance, particularly in the first wave of the pandemic. We also find that riskier banks were affected more negatively if they behaved responsibly. Overall, our findings show that banks’ responsible behavior during a crisis reduces, or at best is not relevant to, shareholder value. |
Description: | This research paper is a preprint. It has not been certified by peer review. A later version of this paper will be published by Elsevier as Kara, A., Ongena, S. and Yildiz, Y. (2024) 'Does being a responsible bank pay off? Evidence from the COVID-19 pandemic', Journal of Financial Stability, 0 (accepted, in press), pp. 1 - [52]. doi: TBC (archived on this institutional repository at: https://bura.brunel.ac.uk/handle/2438/29356). |
URI: | https://bura.brunel.ac.uk/handle/2438/27216 |
DOI: | https://doi.org/10.2139/ssrn.4565590 |
Other Identifiers: | ORCID iD: Alper Kara https://orcid.org/0000-0002-8560-0501 |
Appears in Collections: | Dept of Economics and Finance Research Papers |
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