Chiaramonte, Laura and Dreassi, Alberto and Girardone, Claudia and Piserà, Stefano (2024) Socially responsible banking: Weathering the Covid-19 storm. Journal of International Financial Markets, Institutions and Money. (In Press)
Chiaramonte, Laura and Dreassi, Alberto and Girardone, Claudia and Piserà, Stefano (2024) Socially responsible banking: Weathering the Covid-19 storm. Journal of International Financial Markets, Institutions and Money. (In Press)
Chiaramonte, Laura and Dreassi, Alberto and Girardone, Claudia and Piserà, Stefano (2024) Socially responsible banking: Weathering the Covid-19 storm. Journal of International Financial Markets, Institutions and Money. (In Press)
Abstract
This paper investigates the impact of socially responsible banking activities on banks’ risk profiles, using data from the period of turmoil caused by the Coronavirus (Covid-19) outbreak in Europe. Our findings show that socially responsible banking activities served as a risk-hedging strategy at the peak of the pandemic. Furthermore, we reveal the role of banks’ environmental and social engagement in reducing the exposure to country-level Covid-19 cases and public perception using a Google Trends sentiment analysis. Finally, in explaining the ESG-bank risk relationship, we identify a mediating role of the Covid-19 “panic” as a viable economic channel.
Item Type: | Article |
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Uncontrolled Keywords: | Environmental, Social and Governance (ESG); Covid-19; European Banking; Bank Stability; Google Trends |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Essex Business School |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 19 Jul 2024 14:52 |
Last Modified: | 19 Jul 2024 14:54 |
URI: | http://repository.essex.ac.uk/id/eprint/38804 |
Available files
Filename: Accepted_Manuscript.pdf
Licence: Creative Commons: Attribution-Noncommercial-No Derivative Works 4.0
Embargo Date: 1 January 2100