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Publication d'un article dans la revue "Journal of Financial Services Research" (rang 3)

Publié le 22 juin 2020, Mis à jour le 18 août 2020

Laurent Weill, directeur du LaRGE, va publier prochainement un article dans le "Journal of Financial Services Research", écrit en collaboration avec un doctorant du laboratoire.

JFSR

Laurent Weill et Francis Osei-Tutu (LaRGE, EM Strasbourg) ont co-écrit un article intitulé "How language shapes bank risk taking?".

Abstract :
We analyze the impact of language on risk-taking behavior of banks. Languages that grammatically distinguish between present and future events make the future feel more distant than the present and as thus favor a less future-oriented behavior (Chen, American Economic Review, 2013). Our hypothesis is that these languages lead banks to take more risk since they reduce the perception of potential losses associated with risky activities. We investigate this hypothesis on a sample of 1401 banks from 81 countries over the 2010–2017 period. We perform random effects regressions of bank risk, measured by the Z-score, on the type of language. We find that banks from countries with future tense marking take more risk in accordance with our prediction. This finding is robust to the inclusion of alternative culture indicators, to alternative definitions of bank risk and of future time reference. We also observe that future tense marking is associated with greater occurrence of banking crises. Our conclusion is thus that language contributes to explain the cross-country differences in bank risk-taking.

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The Journal of Financial Services Research publishes high quality empirical and theoretical research on the demand, supply, regulation, and pricing of financial services. Financial services are broadly defined to include banking, risk management, capital markets, mutual funds, insurance, venture capital, consumer and corporate finance, and the technologies used to produce, distribute, and regulate these services. Macro-financial policy issues, including comparative financial systems, the globalization of financial services, and the impact of these phenomena on economic growth and financial stability, are also within the JFSR’s scope of interest. The Journal seeks to promote research that enriches the profession’s understanding of financial services industries, to elevate industry and product efficiencies, as well as to inform the debate and promote the formulation of sound public policies.

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