A poor risk culture was one cause of the financial crisis. Surprisingly, there is no evidence of the link between risk culture and bank stability. Using a large sample of European banks from 2004 to 2014, our paper shows that a sound risk culture leads to better performance. Our research design...

This paper investigates the impact of banks’ environmental engagement on their future stock price crash risk. Given the strong commitment of European institutions towards a low carbon economy, we focus on European banks, who are expected to be crucial actors in driving this challenge. Using a...

Do investors like political connections? We answer this question by exploiting a unique political measure and analyzing the market reaction after the US Supreme Court decision in 2010, which allowed firms to establish a new form of political connection through the employment of independent...