IDEAS home Printed from https://ideas.repec.org/p/ctc/serie5/dipe0030.html
   My bibliography  Save this paper

Interaction between Ownership Structure and Systemic Risk in the European financial sector

Author

Listed:
  • Carlo Bellavite Pellegrini

    (Dipartimento di Politica Economica, DISCE,& Centro Studi Economia Applicata (CSEA), Università Cattolica del Sacro Cuore, Milano, Italy)

  • Rachele Camacci

    (Centro Studi Economia Applicata (CSEA), Università Cattolica del Sacro Cuore, Milano, Italy)

  • Laura Pellegrini

    (Dipartimento di Scienze Aziendali, Università di Bergamo, Bergamo, Italy - Centro Studi Economia Applicata (CSEA), Università Cattolica del Sacro Cuore, Milano, Italy)

  • Andrea Roncella

    (Centro Studi Economia Applicata (CSEA), Università Cattolica del Sacro Cuore, Milano, Italy)

Abstract

This paper aims to empirically test the interaction between systemic risk and corporate governance factors in the European banking framework on a balance panel data of 96 listed banks from 19 countries during the period 2011-2020. The purpose is to understand the role of a corporate governance’s specific issue for the systemic risk, throughtout a period that saw Europe been signed by financial turmoil’s long tail and the ‘whatever it takes’ recovery. Among the available possible governance features we focus on the ownership structure, as the literature shows that it affects the performance of the firm, both on profitability and risk. We choose the European context since its eterogeneity and the presence of a high level of institutional ownership. To measure systemic risk, we will adopt the CoVaR approach (Adrian and Brunnermeier, 2016). Our results show that ownership concentration decreases systemic risk over the period analized, meanwhile institutional investors’ high presence increases it.

Suggested Citation

  • Carlo Bellavite Pellegrini & Rachele Camacci & Laura Pellegrini & Andrea Roncella, 2023. "Interaction between Ownership Structure and Systemic Risk in the European financial sector," DISCE - Quaderni del Dipartimento di Politica Economica dipe0030, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    • Handle: RePEc:ctc:serie5:dipe0030
    as

    Download full text from publisher

    File URL: http://dipartimenti.unicatt.it/politica-economica-DIPE0030.pdf
    File Function: First version, 2023
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Magda Fontana & Martina Iori & Fabio Montobbio & Roberta Sinatra, 2018. "A bridge over troubled water: Interdisciplinarity, Novelty, and Impact," DISCE - Quaderni del Dipartimento di Politica Economica dipe0002, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hackett, Edward J. & Leahey, Erin & Parker, John N. & Rafols, Ismael & Hampton, Stephanie E. & Corte, Ugo & Chavarro, Diego & Drake, John M. & Penders, Bart & Sheble, Laura & Vermeulen, Niki & Vision,, 2021. "Do synthesis centers synthesize? A semantic analysis of topical diversity in research," Research Policy, Elsevier, vol. 50(1).
    2. Marco Guerzoni & Luigi Riso & Marco Vivarelli, 2023. "Was Robert Gibrat right? A test based on the graphical model methodology," DISCE - Quaderni del Dipartimento di Politica Economica dipe0031, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    3. Guastella, Gianni & Mazzarano, Matteo & Pareglio, Stefano & Xepapadeas, Anastasios, 2022. "Climate reputation risk and abnormal returns in the stock markets: A focus on large emitters," International Review of Financial Analysis, Elsevier, vol. 84(C).
    4. Chen, Shiji & Qiu, Junping & Arsenault, Clément & Larivière, Vincent, 2021. "Exploring the interdisciplinarity patterns of highly cited papers," Journal of Informetrics, Elsevier, vol. 15(1).
    5. Andrea Bonaccorsi & Nicola Melluso & Francesco Alessandro Massucci, 2022. "Exploring the antecedents of interdisciplinarity at the European Research Council: a topic modeling approach," Scientometrics, Springer;Akadémiai Kiadó, vol. 127(12), pages 6961-6991, December.
    6. Jacopo Staccioli & Maria Enrica Virgillito, 2020. "The present, past, and future of labor-saving technologies," DISCE - Quaderni del Dipartimento di Politica Economica dipe0013, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    7. Lorenzo Esposito & Ettore Giuseppe Gatti & Giuseppe Mastromatteo, 2019. "Sustainable finance, the good, the bad and the ugly: a critical assessment of the EU institutional framework for the green transition," DISCE - Quaderni del Dipartimento di Politica Economica dipe0004, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).

    More about this item

    Keywords

    Corporate Governance; Ownerhsip Structure; Institutional Investors; Systemic Risk;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ctc:serie5:dipe0030. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Fabio Montobbio (email available below). General contact details of provider: https://edirc.repec.org/data/dscatit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.