Abstract
This chapter aims to show the mass media role in controlling banks’ risk taking behaviour and in shaping their risk culture. Therefore, we first construct a media attention index based on news coverage from 1998 to 2015 about banking risk issues in EU-15 countries, named Banking Risk Coverage (BRC). Second, we study in the relationship between the BRC index and the asset quality of banks in each country. Our analysis suggests that the BRC index is in many cases positively correlated with the NPL of banks.
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Farina, V., Fattobene, L., Graziano, E.A. (2017). Watchdog or Pet Dog: What Is the Role of Media in Shaping Banks’ Risk Culture?. In: Risk Culture in Banking. Palgrave Macmillan Studies in Banking and Financial Institutions. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-57592-6_9
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DOI: https://doi.org/10.1007/978-3-319-57592-6_9
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