Pandemic Waves, Government Response, and Bank Stock Returns: Evidence from 36 Countries

This chapter examines the impact of ESG scores on bank stock returns as a response to the COVID-19 pandemic. The authors use a sample of 73 publicly listed banks from 15 developed European countries. They perform the analysis using two different periods that cover the pandemic: the first major wave period of COVID-19 (February-April 2020) and an extended period (February 2020-April 2021). The findings reveal the negative influence of the COVID-19 pandemic on bank stock returns during the first wave of the pandemic. They further find that, during the first wave, stock returns of banks with higher ESG scores were more resilient to the pandemic. However, when they use the extended time period (from February 2020-April 2021), the influence of both COVID-19 and ESG scores becomes insignificant. The chapter's findings have important policy implications during unprecedented crisis times such as COVID-19.

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Capital ratios and the cross-section of bank stock returns: Evidence from Japan

Journal of Asian Economics ◽

10.1016/j.asieco.2010.12.003 ◽

2011 ◽

Vol 22 (2) ◽

pp. 99-114

Author(s):

Sichong Chen

Keyword(s):

Stock Returns ◽

Cross Section ◽

Bank Stock Returns ◽

Capital Ratios ◽

Bank Stock ◽

The Cross

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The sensitivity of bank stock returns to real estate

The Journal of Real Estate Finance and Economics ◽

10.1007/bf00132268 ◽

1996 ◽

Vol 12 (2) ◽

pp. 203-220 ◽

Cited By ~ 19

Author(s):

Ling T. He ◽

F. C. Neil Myer ◽

James R. Webb

Keyword(s):

Real Estate ◽

Stock Returns ◽

Bank Stock Returns ◽

Bank Stock

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REAL ESTATE MARKET RISK IN BANK STOCK RETURNS: EVIDENCE FOR 15 EUROPEAN COUNTRIES

International Journal of Strategic Property Management ◽

10.3846/1648715x.2015.1120790 ◽

2016 ◽

Vol 20 (2) ◽

pp. 142-155 ◽

Cited By ~ 4

Author(s):

António Miguel MARTINS ◽

Ana Paula SERRA ◽

Francisco Vitorino MARTINS

Keyword(s):

Real Estate ◽

Stock Returns ◽

Real Estate Market ◽

European Countries ◽

Market Conditions ◽

High Exposure ◽

The Real Estate ◽

Real Estate Sector ◽

Bank Stock Returns ◽

Bank Stock

In countries with highly-developed financial systems bank portfolios have high exposure, directly or indirectly, to the real estate sector. Changes in the value of real estate can have a potentially significant impact on the default risk of banks and on their profitability as a result of high exposure to the real estate sector. This is especially critical during real estate crises, when bank losses tend to increase dramatically, placing the entire financial system at risk of collapse, as it was the case of the recent international subprime crisis. This article studies the sensitivity of bank stock returns to real estate returns in 15 European countries. The results indicate that bank stocks are sensitive to real estate market conditions. There is a positive relation between bank stock returns and real estate returns after controlling for general market conditions and interest rates changes.

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