New Challenges for the Banking Industry

Santiago Carbó-Valverde is Professor of Economics at the Universidad de Valencia (Spain), and formerly at the Universidad de Granada, Bangor University (UK) and CUNEF. He is also the Head of Financial Studies at the Spanish think-tank FUNCAS. He has published at the Review of Economics and Statistics, European Economic Review, Scientific Reports-Nature, Review of Finance, Journal of Corporate Finance, Journal of Money, Credit and Banking, Journal of International Money and Finance, and Journal of Banking and Finance.

Pedro J. Cuadros-Solas is Associate (tenured) Professor of Economics and Banking at CUNEF Universidad (Spain). He is Economist at the Spanish think-tank FUNCAS. He has been Visiting Scholar at Bangor Business School (UK) and the University of St. Andrews (UK). His research work has been published at the Journal of Corporate Finance, Journal of Financial Stability, Journal of International Financial Markets, Institutions & Money, European Journal of Finance, and International Review of Economics & Finance, as well as in books published by Springer and Palgrave.

This book aims to enrich the banking and finance literature by gathering insights in new research topics being undertaken in the aftermath of the Covid-19 pandemic. The book spans all the major research fields in finance and banking with a particular focus on corporate governance, sustainability and innovation.

The book brings together academics at a range of European universities and stems from research presented at the 2022 Annual Conference of the Wolpertinger Club. The first part focuses on the impact of banks' corporate governance practice on their performance, including pay gaps as well as diversity and ESG policies. The second part examines how banks are conducting their green transition with topics including reputational risk, greenwashing, green bonds, and ESG scores. The final section of the book considers the role of digitalization and innovative technologies in creating unprecedented disruption in the banking sector.

This edited collection is valuable tothose researching in finance, banking and business, as well as policymakers and operational decision makers at financial institutions.

Chapter 1. Introduction.- PART I: Corporate Governance. Chapter 2. Compensation Policy in Banking: The case of Tournament Incentives.- Chapter 3. The Effect of Board Diversity and ESG Engagement on Banks' Profitability and Risk.- Chapter 4. ESG default risk mitigation effect: a time-sectorial analysis.- Chapter 5. Principles of the optimal government regulation in the financial market.- PART II: Sustainability and Green Finance. Chapter 6. Firm Pollution and Reputational Risk: Where Do We Stand?.- Chapter 7. Is all that glitters that "green"? An Empirical Investigation of the magnitude of greenwashing in banking and its determinants.- Chapter 8. Sovereign green bonds in the European Union. Are they effective in supporting the green transition? .- Chapter 9. The Impact of ESG Score and Controversy on Stock Performance.- PART III: Innovation.- Chapter 10.The Digitalization of the European Banking Industry: Some Evidence.- Chapter 11. The Relation between Patent Pledgeability and Credit Rationing.- Chapter 12. Increasing the predictive power of financial distress models - the case of the new alert system proposed by the Italian NCCAAE.