Sustainability Disclosure in the EU Financial Sector

EU securities regulation has established a taxonomy of environmentally sustainable activities. This article discusses, from a law and economics standpoint, the potential of this taxonomy to support sustainable corporate governance. Corporate governance can be an efficient way to channel investor preferences towards sustainability because the concentration of institutional shareholding has lowered the transaction costs of shareholder action. However, there is a principal-agent problem between institutional investors and their beneficiaries, which depends on greenwashing and undermines sustainable corporate governance. This article argues that introducing environmental sustainability into EU mandatory disclosure aligns the institutional investors’ incentives with the interest of their beneficiaries and may foster the efficient inclusion of sustainability in corporate governance. The argument is threefold. Firstly, the EU taxonomy may curb greenwashing by standardizing the disclosure of environmental sustainability. Secondly, this information may become salient for the beneficiaries as the same standards define the sustainability preferences to be considered in recommending and marketing financial products. Thirdly, sustainability disclosure prompts institutional investors to compete for sustainability-minded beneficiaries. Being unable to avoid unsustainable companies altogether, institutional investors are expected to cater to beneficiaries’ preferences for environmental sustainability using voice instead of an exit.

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5. Regulation and Competition in the EU Financial Sector

After the Crash ◽

10.7312/ohal19284-007 ◽

2019 ◽

pp. 98-120

Keyword(s):

Financial Sector ◽

The Eu

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Oil Price and Stock Prices of EU Financial Companies: Evidence from Panel Data Modeling

Energies ◽

10.3390/en12214072 ◽

2019 ◽

Vol 12 (21) ◽

pp. 4072 ◽

Cited By ~ 1

Author(s):

Alexandra Horobet ◽

Georgiana Vrinceanu ◽

Consuela Popescu ◽

Lucian Belascu

Keyword(s):

Panel Data ◽

Crude Oil ◽

Stock Prices ◽

Financial Sector ◽

Oil Price ◽

Real Economy ◽

Macroeconomic Variables ◽

Long Run ◽

Oil Price Risk ◽

The Eu

Crude oil is an indispensable resource for the world economy and European Union (EU) countries are strongly dependent on oil imports. In a framework defined by generally positive correlations between oil and stock prices, the paper investigates the relationship between financial companies’ stock prices and crude oil price using a sample of major financial companies headquartered in the EU. The link between stock prices and oil price risk is modelled using a set of macroeconomic variables that includes local stock market indices, the EUR/USD exchange rate, the oil imports dependency, inflation rate, and global volatility indices. We employ panel data as the base econometric model and an ARDL extension that is more appropriated for our research objectives. Our findings show that the EU financial sector is pervasively exposed to oil price changes over the long-run and this exposure is a component of financial companies’ exposure to real economy risk factors, which points towards the key role of the financial sector in the EU economy in transmitting systemic shocks. At the same time, we detect signs of a different behavior of market investors over the short-versus the long-run concerning the valuation of financial companies’ stock prices in relation to oil price and other macroeconomic variables, which raises distressing challenges for financial authorities.

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Ukrainian Banking Regulation: Its Challenges and Transition towards European Standards

Brill Research Perspectives in International Banking and Securities Law ◽

10.1163/24056936-12340005 ◽

2017 ◽

Vol 2 (1) ◽

pp. 1-81

Author(s):

Olga Afanasyeva ◽

Armin J. Kammel

Keyword(s):

Strong Support ◽

Financial Sector ◽

Banking Regulation ◽

Association Agreement ◽

Formal Basis ◽

Regulatory Measures ◽

European Standards ◽

The Eu

AbstractFor the last years, Ukraine and particulalry its financial sector were seeking to gradually apply and comply with EU standards. Latest with the signing of the EU-Ukraine Association Agreement in 2014 the transition towards EU standards has a formal basis. Since then, Ukraine – with strong support from the EU – is in the process of implementing legislative and regulatory measures in order to comply with this Agreement. Against this background, this contribution wants to shed some light into Ukraine’s efforts as well as to explain some of the complexities of this process by providing an in-depth background of the current Ukrainian banking regulation, its economics and the challenges of complying with new EU standards.

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On the impacts of allowance banking and the financial sector on the EU Emissions Trading System

Euro-Mediterranean Journal for Environmental Integration ◽

10.1007/s41207-020-00167-x ◽

2020 ◽

Vol 5 (2) ◽

Author(s):

Sotirios Dimos ◽

Eleni Evangelatou ◽

Dimitris Fotakis ◽

Andreas Mantis ◽

Angeliki Mathioudaki

Keyword(s):

Emissions Trading ◽

Financial Sector ◽

Trading System ◽

Eu Emissions Trading System ◽

Emissions Trading System ◽

The Eu

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Financial Crisis and Fiscal Policy: An Assessment of the EU-Member Balkan States

International Conference on Eurasian Economies 2014 ◽

10.36880/c05.00951 ◽

2014 ◽

Author(s):

Servet Akyol

Keyword(s):

Public Sector ◽

Fiscal Policy ◽

Public Debt ◽

Financial Sector ◽

Fiscal Policies ◽

Economic Activities ◽

Public Deficit ◽

Debt Burden ◽

Balkan States ◽

The Eu

The objective of this paper is to study the economic and social results of the post-crisis fiscal policies concerning the Balkan States that are members of the EU. The global crisis, which broke out in the US in 2008, had a deep effect on both developed and developing countries. Until today different policies have been put on the agenda in order to eliminate or alleviate the impacts of the crisis. In this context, bailout and stimulus packages were firstly implemented. Stimulus packages were replaced by austerity policies because of the increasing public debt and budget deficit after 2010. Fiscal policy focused on reducing the debts instead of supporting the economic activities. This study is based on historical and descriptive method. It examines the development of post-crisis fiscal policies in the Balkan States that are members of the EU. In this study, public expenditure, public debt, public deficit and unemployment rate are used as the main indicators. The effects of fiscal policy will be compared between countries. This study also suggests that although the crisis resulted from financial sector, burden of crisis was transferred to public sector. Moreover, in many countries, because of its increasing deficit and debt burden, public sector became depended on financial sector that was rescued before. After the crisis, fiscal policies has led to significant economic and social costs in the Balkan States that are members of the EU.

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