Are Ethical and Social Banks Less Risky? Evidence from a New Dataset

Karl, Marlene

doi:10.2139/ssrn.2617228

Cited by 20 publications

(36 citation statements)

References 34 publications

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“…We confirm that the stronger a bank's reputation becomes, the lower its riskiness profile will become in accordance with Melo and Garrido-Morgado (2012). This result confirms recent research results demonstrating that sustainable banks are less risky than 'conventional banks' (Karl, 2015). This is the case because sustainable banks generally aim not to negotiate highly structured financial products so that their loan portfolio quality levels can improve.…”

Section: Discussionsupporting

confidence: 87%

“…This is the case because sustainable banks generally aim not to negotiate highly structured financial products so that their loan portfolio quality levels can improve. Moreover, such banks carry larger capital buffers and pay more attention to reputation risks, for which negative effects are more severe than those of a conventional bank (Karl, 2015). Finally, our findings confirm that the risky practices used by banks during the sub-prime crisis have been a major cause of reputational losses suffered by these companies (Fiordelisi, 2014).…”

Section: Discussionsupporting

confidence: 76%

“…Our analysis confirms this hypothesis; indeed, we find a positive relationship between reputation and EPS and reputation and Iinc_Loan. Moreover, such banks carry larger capital buffers and pay more attention to reputation risks, for which negative effects are more severe than those of a conventional bank (Karl, 2015). Consequently, revenues and accounting performance tend to increase.…”

Section: Discussionmentioning

confidence: 99%

See 2 more Smart Citations

Corporate Social Responsibility Engagement as a Determinant of Bank Reputation: An Empirical Analysis

Dell’Atti

Trotta

Iannuzzi

et al. 2017

Corp Soc Responsibility Env

108

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The relationships between sustainable behavior, firm reputation, and economic performance are significant issues that continue to become more important. Corporate reputation has important implications for economic performance while corporate social responsibility engagement is considered a key determinant of reputation. The aim of this study is to empirically test such relationships regarding the banking sector and for the sub-prime crisis period (2008)(2009)(2010)(2011)(2012). We apply our hypothesis to 75 large international banks using Reputation Institute and ASSET4 data and adopting a multiple econometric approach. Our initial results are encouraging and consistent with the existing literature: bank reputation is positively related to accounting performance and is negatively related to leverage and riskiness profiles. However, while a positive relationship between reputation and social performance exists, relationships between reputation, corporate governance, and environmental performance are always negative. We discuss these results by identifying related causes and by presenting avenues for future research.

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Section: Discussionsupporting

confidence: 87%

Section: Discussionsupporting

confidence: 76%

Section: Discussionmentioning

confidence: 99%

See 1 more Smart Citation

Corporate Social Responsibility Engagement as a Determinant of Bank Reputation: An Empirical Analysis

Dell’Atti

Trotta

Iannuzzi

et al. 2017

Corp Soc Responsibility Env

108

View full text Add to dashboard Cite

show abstract

“…Traditional methodologies of external and internal analysis have been applied to this newly created sector providing useful information to its future implantation, as the strengths and weaknesses of this sector have been shown. Desde el inicio de la última crisis financiera y bancaria mundial en 2007, se ha observado un aumento en la desconfianza del sistema financiero tradicional y un incremento en la fidelidad que el cliente deposita en las finanzas éticas (Karl, 2015;Alemán, 2015;Ruiz, Esteban y Gutiérrez, 2014;Soler y Melián, 2012;Pérez-Ruiz y Rodríguez, 2012;San José, Retolaza y Gutiérrez, 2011).…”

Section: Practical Conclusion and Original Valueunclassified

Análisis estratégico de la Banca ética en España a través de Triodos Bank. Financiación de proyectos sociales y medioambientales

Segura

Martínez

2018

Ciriec-España

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“…La reputación del modelo bancario tradicional está seriamente cuestionada desde el inicio de la última crisis financiera mundial y, en consecuencia, se ha producido un interés por las finanzas éticas, en relación a los sectores que financian los ahorros depositados en las entidades bancarias (Karl, 2015;Alemán, 2015;Ruiz, Esteban y Gutiérrez, 2014;Soler y Melián, 2012;Pérez-Ruiz y Rodríguez, 2012;San José, Retolaza y Gutiérrez, 2011).…”

Section: Introductionunclassified

Análisis de viabilidad de la banca ética en España a través de Triodos Bank. Comparativa económico-financiera con la banca tradicional

Segura

Martínez

2018

REVE

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Resumen. La Banca Ética es la respuesta a décadas de especulación financiera y a inversiones alejadas de un compromiso ético y cooperativo por parte de la banca tradicional. Constituye el instrumento necesario para gestionar el negocio bancario desde la transparencia, con códigos sociales y medioambientales, sin olvidar la rentabilidad económica para resistir y permanecer en un sistema financiero exigente. El presente trabajo tiene como objetivos, por un lado, estudiar el origen y las características de la banca ética, que aunque no es ajena a los momentos de contracción económica, su misión posibilita que sea una alternativa a la dependencia del sector bancario tradicional; y, por otro lado, examinar las condiciones e iniciativas que la entidad Triodos Bank realiza para posicionarse como banco líder con valores éticos y, a su vez, comparar sus resultados con los obtenidos por las principales entidades financieras de la banca convencional. Palabras clave: Finanzas Éticas; Triodos Bank; Inversión Socialmente Responsable; Banca Social. Claves Econlit: A13; G21; M21.[en] Analysis of viability of the ethics bank in Spain through Triodos Bank. Comparison economic-financial with traditional bankAbstract. Ethical Banking is the answer to decades of financial speculation and investments away from an ethical and cooperative commitment of traditional banking. It is the necessary instrument to manage the banking business from transparency with social and environmental codes, without forgetting the economic profitability to resist and remain in a demanding financial system. The purpose of this paper, on the one hand, is to study the origin and characteristics of ethical banking, which, although not unconnected with economic downturns, makes it an alternative to dependence on the traditional banking sector; and, on the other hand, to examine the conditions and initiatives that Triodos Bank performs to position itself as a leading bank with ethical values and, in turn, to compare its results with those obtained by the main financial entities of conventional banking.

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Are Ethical and Social Banks Less Risky? Evidence from a New Dataset

Cited by 20 publications

References 34 publications

Corporate Social Responsibility Engagement as a Determinant of Bank Reputation: An Empirical Analysis

Corporate Social Responsibility Engagement as a Determinant of Bank Reputation: An Empirical Analysis

Análisis estratégico de la Banca ética en España a través de Triodos Bank. Financiación de proyectos sociales y medioambientales

Análisis de viabilidad de la banca ética en España a través de Triodos Bank. Comparativa económico-financiera con la banca tradicional

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