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, 95. p. 102029. DOI https://doi.org/10.1016/j.intfin.2024.102029
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, 95. p. 102029. DOI https://doi.org/10.1016/j.intfin.2024.102029
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, 95. p. 102029. DOI https://doi.org/10.1016/j.intfin.2024.102029
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: | 30 Oct 2024 21:09 |
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: 26 July 2025