This book discusses the transformation of the banking industry, particularly after a number of recent shocks: 2008 financial crisis, 2012 Euro-sovereign crisis, the pandemic COVID-19 crisis, the technological revolution, and reputational problems in banking due to climate risk and ESG (Environmental, Social and Governance) metrics.
The book emphasizes two post-pandemic issues: the role of financial education and inclusive finance, and responsible banking and ESG priorities. Individual chapters analyse how the pandemic shed new light on social and governance responsibilities: Major issues include the importance and efficiency of financial education, and the impact of ESG programs on firms’ value, banks’ probability of default, bank business models and reputation risk. The book also addresses investors’ behaviour and the factors which may bias financial disclosure and reporting. By addressing whether the post-2008 crisis bank restructuring has effectively created a resilient and sustainable banking system – mostly from the European market’s perspective – the book will be of interest to researchers, academics, policy makers, and professionals of banking and financial institutions.
Author(s): Paul Wachtel, Giovanni Ferri, Ewa Miklaszewska
Series: Palgrave Macmillan Studies in Banking and Financial Institutions
Publisher: Palgrave Macmillan
Year: 2023
Language: English
Pages: 292
City: Cham
Introduction by the Editors
Contents
Notes on Contributors
List of Figures
List of Tables
1 The Market Reaction to Climate Risk: Evidence from the European Banking Industry
1.1 Introduction
1.2 Research Hypothesis and Related Literature
1.3 Sample Data and Methods
1.3.1 Variables and Univariate Analysis
1.4 Empirical Analysis and Results
1.5 Conclusion
References
2 Dissecting the European ESG Premium vs the US: Is It All About Non-financial Reporting?
2.1 Introduction
2.2 The Perception of the EU–US Gap in Terms of ESG Ratings by the Extant Literature
2.3 The ESG Score Gap Between EU and US Companies: Hypothesis Development
2.3.1 Sectoral Composition of Regional Groups of Companies
2.3.1.1 Relevance of the Industry/Sector
2.3.1.2 Hypothesis Development: Sectoral Composition
2.3.2 Sustainability Reporting Practices
2.3.2.1 The Regulatory Framework: Mandatory vs Voluntary Sustainability Reporting
2.3.2.2 The Determinants of Sustainability Reporting
2.3.2.3 Sustainability Performance vs Sustainability Reporting: Emphasis on the Quality of Reporting
2.3.2.4 Recent Trends and Standards of Sustainability Reporting
2.3.2.5 Hypothesis Development: Sustainability Reporting Practices
2.4 Exploring the Gap: Results and Discussion
2.4.1 Methodology
2.4.2 Results and Discussion
2.4.2.1 Hypothesis 1: Sectoral Composition
2.4.2.2 Hypothesis 2: Sustainability Reporting Practices
2.4.3 Robustness Checks Through Econometric Analysis
2.5 Conclusions
Annex
References
3 Loan Origination and Monitoring Guidelines: How Do ESG Indicators Affect Firms’ Probability of Default?
3.1 Introduction
3.2 The Regulatory Framework: What Has Changed?
3.2.1 Internal Governance
3.2.2 The Procedures for Granting Loans
3.2.3 Pricing
3.2.4 Monitoring Framework
3.3 Literature Review
3.4 Database and Methodology
3.5 Results
3.6 Conclusion
References
4 Using E from ESG in Systemic Risk Measurement
4.1 How Systemic Risk Affects Financial Institutions
4.2 Environmental Risk in Systemic Risk Analysis
4.3 ESG Data for Systemic Risk Measurement
4.4 The E-Factor Model
4.5 Examples of the E-SRM Model Application to Stylized Data
4.6 Conclusions and Perspectives
References
5 Corruption Disclosure in Banking: Insights from the Literature
5.1 Introduction
5.2 Corruption on the Banking Industry and the Lending Business
5.3 The Importance of Corruption Disclosure
5.4 Theoretical Frameworks for Corruption Disclosure
5.5 Conclusions
References
6 Financial Competence and the Role of Non-cognitive Factors
6.1 Introduction
6.2 Literature Review
6.3 Data and Method
6.3.1 Sample
6.3.2 Methodology
6.4 Results
6.4.1 Students’ Levels of Financial Knowledge and Attitude Towards Finance
6.5 Relationship Between Attitude Towards Finance and Financial Knowledge
6.6 Discussion and Conclusion
References
7 Does Financial Literacy Progress Over Time? An Analysis of Three Surveys in Italy
7.1 Introduction
7.2 Survey Instrument and Sample
7.2.1 Survey Instrument
7.2.2 Sample
7.3 The Intertemporal Evolution of Financial Literacy Levels: Descriptive Statistics
7.3.1 Socio-demographic Characteristics
7.4 Empirical Methods
7.4.1 CART Analysis
7.4.2 Explanatory Variables
7.5 Results and Discussion
7.6 Conclusions
Annex 1
Annex 2
Annex 3
References
8 An Interdisciplinary Approach to Economic Texts: The “Considerazioni Finali” by the Governor of the Bank of Italy as a Case Study
8.1 Introduction
8.2 Setting the Stage
8.3 The Position of the CF in the Sociolinguistic Architecture of Italian
8.4 Some Relevant Literature
8.5 Towards an Analysis
8.5.1 Methodology
8.5.2 Pills of Italian Economic History
8.5.3 Keywords
8.6 Conclusions
References
9 Drivers of Shareholder Value Creation in M&A: Event Study of the European Banking Sector in the Post-financial Crisis Era
9.1 Introduction
9.2 The European Banking Sector in the Post-Financial Crisis Era
9.3 Literature Review
9.4 Research Methodology
9.4.1 Event Study
9.4.2 Objectives of the Analysis
9.4.3 Selection of the Sample
9.5 Empirical Results
9.5.1 Results of the Event Study
9.5.2 Cross-Sectional Regression
9.6 Conclusions
References
Index
