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dc.contributor.authorGonenc, Halit
dc.contributor.authorScholtens, Bert
dc.identifier.citationGonenc , H & Scholtens , B 2019 , ' Responsibility and performance relationship in the banking industry ' , Sustainability , vol. 11 , 3329 , pp. 1-52 .
dc.identifier.otherPURE: 259345029
dc.identifier.otherPURE UUID: 78c5241a-191e-4f10-90d7-e19932e0a759
dc.identifier.otherScopus: 85063576308
dc.identifier.otherWOS: 000473753700099
dc.identifier.otherORCID: /0000-0001-5774-5191/work/69835018
dc.description.abstractWe study the relationship between financial performance and responsibility in the banking industry. Given the wide diversity in business models and operations, this relationship needs to be studied at the level of specific industries. We contribute to the debate about financial and social performance in the banking industry by using highly detailed responsibility and financial performance information, which helps to understand why this relationship exists and how the relationship evolves over time. We rely on a diverse international sample for the period 2002–2015 and use a wide range of financial performance measures next to various specific indicators for corporate governance, environmental, and social performance. By using simultaneous equation system estimations to address the causality between financial performance and responsibility, we find that the Tier-1 capital adequacy ratio is significantly and positively associated with responsibility indicators. As such, stronger institutions appear to be able to act in a more responsible manner and such responsibility signals banks’ health. We also establish that the global financial crisis did have a profound impact on the finance-responsibility nexus. We show that there are changes in the underlying relationships in this nexus during the post-crisis period compared to the pre-crisis period. Furthermore, such changes are different between countries with high and low income, civil and common law, single and multiple supervision authorities, and central bank and non-central bank supervision.
dc.rightsCopyright © 2019 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (
dc.subjectFinancial performanceen
dc.subjectFinancial crisisen
dc.subjectCountry institutionsen
dc.subjectBank supervisionen
dc.subjectHG Financeen
dc.titleResponsibility and performance relationship in the banking industryen
dc.typeJournal articleen
dc.description.versionPublisher PDFen
dc.contributor.institutionUniversity of St Andrews.Centre for Responsible Banking and Financeen
dc.contributor.institutionUniversity of St Andrews.School of Managementen
dc.description.statusPeer revieweden

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