The 2008 global financial crisis highlights the importance of securitization and crash risk. Yet there is a dearth of papers exploring the link between securitization and crash risk. We analyze 7,096 securitization deals made by large European listed banks between 2000 and 2017. Our paper...

The opacity of the banking business has been identified as a main source of stock crash risk. Level 3 financial instruments are particularly opaque products, as their fair value is neither directly available nor measurable using market prices. Focusing on Europe, we find robust evidence that L3...

Did the Comprehensive Assessment (CA), preceding the Single Supervisory Mechanism's launch in Europe, achieve its aims of producing new valuable information for the market? We show that the CA achieved the goal of increasing transparency: investors were able to detect weak banks at the...

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, who are expected to be crucial actors in driving this challenge. Using a...

Financial instruments in levels 2 and 3 for accounting purposes are complex and opaque products and their evaluation is problematic. The amount of these assets held by banks in Europe is exceptionally high (€3 trillion in 2019) and there is no empirical evidence as to the extent, if at all, to...