Homanen (2018)

Homanen, Mikael. “Depositors Disciplining Banks: The Impact of Scandals.” Working paper (Cass Business School), 2018.

From the author’s abstract: “Do depositors react to negative non-financial information? By using branch level data for the U.S., I show that banks, who financed the highly controversial Dakota Access Pipeline, had significant decreases in deposit growth, especially for branches located closest to the pipeline. These effects were greater for branches located in environmentally or socially conscious counties and data suggests that savings banks were among the main beneficiaries of this depositor movement. Using a global hand- collected dataset on tax evasion, corruption and environmental scandals, I show that negative deposit growth as a reaction to scandals is a more widespread phenomenon.”

Link: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3293254