Environmental engagement and stock price crash risk: Evidence from the European banking industry
研究了欧洲银行的环境参与如何降低其未来股价崩盘风险，发现高环境参与对应高道德标准和财务透明度，对投资者和监管者有参考价值。
This paper investigates the impact of banks' environmental engagement on their future stock price crash risk. Given the strong commitment of European institutions towards a low carbon economy, we focus on European banks, which are expected to be crucial actors in driving this challenge. Using a sample of 447 bank-year observations across 22 European countries from 2015 to 2021, we find a negative relationship between banks' environmental engagement and future stock price crash risk, in accordance with the signalling theory, suggesting that a high level of environmental engagement corresponds to high ethical standards of bank managers and high levels of financial transparency.