Banking sector openness, a path to social responsibility? Evidence from Southern European banks
DOI:
https://doi.org/10.17811/ebl.12.4.2023.284-295Keywords:
Corporate social responsibility (CSR), bank reputation, Bank performance, financial risk, GlobalizationAbstract
Since the global financial crisis of 2008, the practices of the European banking sector have come under public scrutiny.
Considered as a source of external shocks, the opening of European banking markets is particularly questioned.
Following this trend, this article aims to provide an original study by examining the effect of banking sector openness on
banks' social responsibility. It focuses on the case of Southern European banks, which are the most vulnerable in the
European system. The study highlights a significant effect of banking sector openness on banks' social performance.
However, the financial performance of banks moderates this effect.
References
Bagnoli, M., & Watts, S. G. (2003). Selling to socially responsible consumers: Competition and the private provision of public goods. Journal of Economics & Management Strategy, 12(3), 419-445.
Bayraktar, N., & Wang, Y. (2008). Banking sector openness and economic growth. Margin: The Journal of Applied Economic Research, 2(2), 145-175.
Beck, T., Demirgüç-Kunt, A., & Levine, R. (2010). Financial institutions and markets across countries and over time: The updated financial development and structure database. The World Bank Economic Review, 24(1), 77-92.
Bradbury, M. E. (1991). Characteristics of firms and voluntary interim earnings disclosure: New Zealand evidence. Pacific Accounting Review, 3, 37–62.
Claessens, S., Demirgüç-Kunt, A., & Huizinga, H. (2001). How does foreign entry affect domestic banking markets?. Journal of banking & finance, 25(5), 891-911.
Detragiache, M. E., Tressel, M. T., & Turk-Ariss, R. (2018). Where have all the profits gone? European bank profitability over the financial cycle. International Monetary Fund. May 9, 2018.
El Ghoul, S., & Karoui, A. (2017). Does corporate social responsibility affect mutual fund performance and flows?. Journal of Banking & Finance, 77, 53-63.
Gaies, B. (2022). Reassessing the impact of health expenditure on income growth in the face of the global sanitary crisis: the case of developing countries. The European Journal of Health Economics, 1-22.
Gaies, B., & Nabi, M. S. (2021). Banking crises and economic growth in developing countries: Why privileging foreign direct investment over external debt?. Bulletin of Economic Research, 73(4), 736-761.
Green, T., & Peloza, J. (2014). How do consumers infer corporate social responsibility? The role of organisation size. Journal of Consumer Behaviour, 13(4), 282-293.
Jahmane, A., & Gaies, B. (2020). Corporate social responsibility, financial instability and corporate financial performance: Linear, non-linear and spillover effects–The case of the CAC 40 companies. Finance Research Letters, 34, 101483.
Ketokivi, M., & McIntosh, C. N. (2017). Addressing the endogeneity dilemma in operations management research: Theoretical, empirical, and pragmatic considerations. Journal of Operations Management, 52, 1-14.
Lahouel, B. B., Gaies, B., Zaied, Y. B., & Jahmane, A. (2019). Accounting for endogeneity and the dynamics of corporate social–corporate financial performance relationship. Journal of cleaner production, 230, 352-364.
McKinnon, R. I. (1973). Money and Capital in Economic Development. The Brookings Institution, Washington, D.C.
Minsky, H. (1982). The Financial-Instability Hypothesis: Capitalist Process and the Behavior of the Economy. In Financial Crises: Theory, History, and Policy (pp. 13-39). Cambridge University Press, Cambridge.
Paltalidis, N., Gounopoulos, D., Kizys, R., & Koutelidakis, Y. (2015). Transmission channels of systemic risk and contagion in the European financial network. Journal of Banking & Finance, 61, S36-S52.
Saïdane, D., & Abdallah, S. B. (2021). African firm default risk and CSR. Finance Research Letters, 101964.
Shaw, E. S. (1973). Financial Deepening in Economic Development. Oxford University Press, Oxford.
Sheikh, S. (2019). Corporate social responsibility and firm leverage: The impact of market competition. Research in International Business and Finance, 48, 496-510.
Waddock, S. A., & Graves, S. B. (1997). The corporate social performance–financial performance link. Strategic management journal, 18(4), 303-319.
Ziogas, I., & Metaxas, T. (2021). Corporate social responsibility in South Europe during the financial crisis and its relation to the financial performance of greek companies. Sustainability, 13(14), 8055.
Downloads
Published
How to Cite
Issue
Section
License
The works published in this journal are subject to the following terms:
1. Oviedo University Press (the publisher) retains the property rights (copyright) of published works, and encourages and enables the reuse of the same under the license specified in paragraph 2.
© Ediuno. Ediciones de la Universidad de Oviedo / Oviedo University Press
2. The works are published in the online edition of the journal under a Creative Commons Attribution-Non Commercial-Non Derives 3.0 Spain (legal text). You can copy, use, distribute, transmit and publicly display, provided that: i) you cite the author and the original source of publication (journal, publisher and URL of the work), ii) they are not used for commercial purposes, iii) mentions the existence and specifications of this license.
3. Conditions of self-archiving. The author can archive the post-print version of the article (publisher’s version) on the author’s personal website and/or on the web of the institution where he belong, including a link to the page of the journal and putting the way of citation of the work. Economics and Business Letters and its URL https://reunido.uniovi.es/index.php/EBL/index are the only authorized source for correctly giving the reference of the publisher’s version in every mention of the article.
