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Real estate price fluctuations and institutional misconduct

Author

Listed:
  • Hu, Mingya
  • Zhang, Yongjie
  • Feng, Xu

Abstract

We find that greater exposure to real estate price volatility (BE-REPV) is linked to higher levels of misconduct within banks. Increases in real estate prices drive banks to expand their lending activities, which in turn increases operational pressures and staff misconduct. This misconduct, initially originating in lending operations, spills over into deposit-related activities, leading to higher misconduct in banks' deposit operations. Our findings highlight a direct connection between real estate price volatility and bank misconduct, providing fresh insights into how external market factors influence institutional behavior.

Suggested Citation

  • Hu, Mingya & Zhang, Yongjie & Feng, Xu, 2025. "Real estate price fluctuations and institutional misconduct," Finance Research Letters, Elsevier, vol. 86(PB).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pb:s1544612325017593
    DOI: 10.1016/j.frl.2025.108505
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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