EconPapers    
Economics at your fingertips  
 

Organizational Structure and Exposure to Crisis among European Banks: Evidence from Rating Changes

Giovanni Ferri, Panu Kalmi () and Eeva Kerola
Additional contact information
Panu Kalmi: University of Vaasa, Finland

Journal of Entrepreneurial and Organizational Diversity, 2014, vol. 3, issue 1, 35-55

Abstract: The Great Crisis that started in 2007 deeply affected banks throughout Europe. Using the assessments of the two global agencies that publish ratings of the financial strength of individual banks, we study whether the crisis hit European banks differently depending on their organizational structure. We analyze the changes in the ratings during the crisis and how they are related to bank ownership. Our results lend support to the hypothesis that stakeholder banks, especially cooperative banks, were downgraded to a lesser degree than shareholder banks. However, the results differ somewhat across the rating agencies. We also discuss the sources of ratings disagreements in the paper. Our paper is among the first presenting statistically based evidence on the relative merits of different organizational structures during the recent financial and economic crisis.

Keywords: european banking; shareholder banks; cooperative banks; savings banks; performance; credit rating agencies (search for similar items in EconPapers)
JEL-codes: G2 G3 L2 P1 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
http://www.jeodonline.com/sites/jeodonline.com/fil ... rri-kalmi-kerola.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:trn:csnjrn:v:3:i:1:p:35-55

Access Statistics for this article

More articles in Journal of Entrepreneurial and Organizational Diversity from European Research Institute on Cooperative and Social Enterprises Contact information at EDIRC.
Bibliographic data for series maintained by Barbara Franchini ().

 
Page updated 2021-06-10
Handle: RePEc:trn:csnjrn:v:3:i:1:p:35-55