To read this content please select one of the options below:

Corporate Misbehavior in the Banking Industry: What Role Does the State Play?

Federica Nieri (University of Pisa, Italy)

International Business and Sustainable Development Goals

ISBN: 978-1-83753-505-7, eISBN: 978-1-83753-504-0

Publication date: 31 July 2023


How does context shape the way in which corporations contribute to or impede progress toward sustainable development goals (SDGs)? In this chapter, the author studies how the state as corporate owner and in its broader function in the institutional environment affects companies’ involvement in misbehaving practices related to human rights issues, with a focus on the banking industry. Based on a longitudinal analysis of 178 banks over the cohort 1996–2018, the results show that state-owned banks, as well as those from institutionally weak environments, are more involved in business-related misbehaving practices. Moreover, in a strong institutional environment, state-owned banks are more involved in corporate misbehavior than non-state-owned banks. These results contribute to the literature on corporate misbehavior, focusing on the state’s role in preventing or facilitating banks’ involvement in misbehaving practices. The author concludes by discussing the findings’ implications and providing suggestions for future research.




The author would like to thank the editors for helpful comments on an earlier draft. Financial support from Fondazione Finanza Etica and the University of Pisa is gratefully acknowledged.


Nieri, F. (2023), "Corporate Misbehavior in the Banking Industry: What Role Does the State Play?", van Tulder, R., Giuliani, E. and Álvarez, I. (Ed.) International Business and Sustainable Development Goals (Progress in International Business Research, Vol. 17), Emerald Publishing Limited, Leeds, pp. 327-344.



Emerald Publishing Limited

Copyright © 2023 Federica Nieri