Research Seminar on Bank safety culture, risk taking and misconduct

Wednesday, January 25, 2023 - 12:00 to 13:00
TSI 210

We are pleased to invite you to the next Research Seminar with Shivam Agarwal  on 25th January at 12 noon in TSI 210.
We examine how and to what extent a bank's culture influences that bank's misconduct. We find that banks with a growth-oriented risk-taking culture are more likely to receive enforcement actions whereas banks with a safety-oriented culture are less likely to receive enforcement actions. Our findings remain despite accounting for look ahead bias, measurement error and omitted variable bias. Using state-level culture measure as an instrument variable, we find evidence supporting a causal effect of corporate culture on misconduct in banks.
Shivam Agarwal