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.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
