Equity returns in the banking sector in the wake of the Great Recession and the European sovereign debt crisis

Jorge Chan-Lau, Estelle X. Liu and Jochen M. Schmittmann

Journal of Financial Stability, 2015, vol. 16, issue C, 164-172

Abstract: This study finds that equity returns in the banking sector in the wake of the Great Recession and the European sovereign debt crisis have been driven mainly by weak growth prospects and heightened sovereign risk; and to a lesser extent by deteriorating funding conditions and investor sentiment. While the equity return performance in the banking sector has been dismal in general, there is some evidence that better capitalized and less leveraged banks have outperformed their peers in times of stress.

Keywords: Banks equity returns; Financial crisis; Sovereign debt crisis; Economic growth; Regulatory capital (search for similar items in EconPapers)
JEL-codes: G01 G14 G21 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)

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Working Paper: Equity Returns in the Banking Sector in the Wake of the Great Recession and the European Sovereign Debt Crisis (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finsta:v:16:y:2015:i:c:p:164-172

DOI: 10.1016/j.jfs.2014.07.003

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