Is greater stakeholder engagement associated with greater stability? We provide readerswith novel empirical evidence that this is indeed the case. Cooperative banks (where stake-holders are involved in the business by law) are an excellent case to study the associationbetween stakeholder engagement and stability. Focusing on Italy, we show that cooper-ative banks differ substantially in risk-taking from each other, and these differences aremostly related to the engagement of stakeholders. A greater overlap between sharehold-ers, borrowers and depositors is associated with lower non-performing loans, suggestingthat greater stakeholder engagement reduces problems of asymmetric information andbank risk appetite.

Fiordelisi, F., Grimaldi, S., Lopez, J.S., Mazzilis, M.C., Ricci, O. (2022). The Beauty of Being Involved: The Case of Cooperative Banks. BRITISH JOURNAL OF MANAGEMENT [10.1111/1467-8551.12698].

The Beauty of Being Involved: The Case of Cooperative Banks

Fiordelisi, Franco;Ricci, Ornella
2022-01-01

Abstract

Is greater stakeholder engagement associated with greater stability? We provide readerswith novel empirical evidence that this is indeed the case. Cooperative banks (where stake-holders are involved in the business by law) are an excellent case to study the associationbetween stakeholder engagement and stability. Focusing on Italy, we show that cooper-ative banks differ substantially in risk-taking from each other, and these differences aremostly related to the engagement of stakeholders. A greater overlap between sharehold-ers, borrowers and depositors is associated with lower non-performing loans, suggestingthat greater stakeholder engagement reduces problems of asymmetric information andbank risk appetite.
2022
Fiordelisi, F., Grimaldi, S., Lopez, J.S., Mazzilis, M.C., Ricci, O. (2022). The Beauty of Being Involved: The Case of Cooperative Banks. BRITISH JOURNAL OF MANAGEMENT [10.1111/1467-8551.12698].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11590/426051
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