L. Weill, publication dans Research in International Business and Finance


La revue "Research in International Business and Finance" vient d'accepter la publication d'un article écrit par le directeur du LaRGE.

"Research in International Business and Finance" est une revue qui publie des articles explorant les problèmes actuels et nouveaux de la finance internationale.

Laurent Weill (LaRGE, EM Strasbourg) a écrit un article intitulé "Does high profitability improve stability for European banks?", en collaboration Pierre Pessarossi (ACPR-Banque de France) et Jean-Luc Thevenon (ACPR-Banque de France).

We investigate whether high profitability influences the occurrence of bank distress in Europe. We utilize four sets of indicators for high profitability in logit models to explain bank distress with a hand-collected dataset of European bank distresses. We find that high profitability does not reduce the occurrence of bank distress. In contrast, we obtain limited evidence that high profitability can lead to increase such occurrence through a time horizon of about 3 years. Our findings therefore challenge the view that bank profitability should be promoted to favor bank stability.

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