J 2019

Social aspirations in European banks: peer-influenced risk behaviour.

LYÓCSA, Štefan, Tomáš VÝROST and Eduard BAUMÖHL

Basic information

Original name

Social aspirations in European banks: peer-influenced risk behaviour.

Authors

LYÓCSA, Štefan (703 Slovakia, guarantor, belonging to the institution), Tomáš VÝROST (703 Slovakia) and Eduard BAUMÖHL (703 Slovakia)

Edition

Applied Economics Letters, UK, Taylor & Francis, 2019, 1350-4851

Other information

Language

English

Type of outcome

Článek v odborném periodiku

Field of Study

50204 Business and management

Country of publisher

United Kingdom of Great Britain and Northern Ireland

Confidentiality degree

není předmětem státního či obchodního tajemství

References:

Impact factor

Impact factor: 0.752

RIV identification code

RIV/00216224:14560/19:00108926

Organization unit

Faculty of Economics and Administration

DOI

UT WoS

000455124800007

Keywords in English

Social aspiration; European banks; performance; risk behaviour; prospect theory

Tags

International impact, Reviewed
Změněno: 24/11/2023 15:06, Mgr. Pavlína Kurková

Abstract

V originále

We test a sample of 3,586 banks from 33 European countries to determine whether performances above or below a social aspiration level (median performance of peer banks) influence banks’ aggregate risk levels. Our results are consistent with the behavioural theory of the firm and prospect theory in that we find that bank performance below a bank’s social aspiration level is followed by increased aggregate risk, i.e. risk-taking behaviour in the subsequent year. Although under-performing banks tend to be risk-takers, large banks and banks with high aggregate risk levels tend to limit the increase in their aggregate risk levels.