Informace o publikaci

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

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LYÓCSA Štefan VÝROST Tomáš BAUMÖHL Eduard

Rok publikování 2019
Druh Článek v odborném periodiku
Časopis / Zdroj Applied Economics Letters
Fakulta / Pracoviště MU

Ekonomicko-správní fakulta

Citace
www https://www.tandfonline.com/doi/full/10.1080/13504851.2018.1486977
Doi http://dx.doi.org/10.1080/13504851.2018.1486977
Klíčová slova Social aspiration; European banks; performance; risk behaviour; prospect theory
Popis 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.