Stock Market Listing and the Persistence of Bank Performance Across Crises

65 Pages Posted: 23 Jan 2018 Last revised: 17 Mar 2020

See all articles by Alexandre Garel

Alexandre Garel

Audencia Business School; Labex ReFi

Jose M. Martin-Flores


Arthur Petit-Romec

SKEMA Business School; Université Côte d'Azur

Date Written: December 15, 2017


This paper examines whether stock market listing influences the persistence of bank performance across crises. We find that for both publicly and privately held banks, bank performance during the 1998 crisis is a strong predictor of bank performance during the 2007–2008 crisis. While for publicly held banks, the persistence is uniquely driven by bottom performers, for privately held banks the persistence is also driven by a group of top performers. We further show that banks that make a private-to-public transition between the two crises underperform in the 2007-08 crisis, especially if they are top performers during the 1998 crisis and more concerned about short-term stock price. We also document that after making a private-to-public transition, banks increase risk in a way that makes them more vulnerable to crises.

Keywords: Bank Performance; Crisis; Stock Market Listing; Risk-taking

JEL Classification: G21; G23

Suggested Citation

Garel, Alexandre and Martin-Flores, Jose-Maria and Petit-Romec, Arthur, Stock Market Listing and the Persistence of Bank Performance Across Crises (December 15, 2017). Available at SSRN: or

Alexandre Garel

Audencia Business School ( email )

8 Road Joneliere
BP 31222
Nantes Cedex 3, 44312

Labex ReFi ( email )

79 avenue de la République
Paris, 75011

Jose-Maria Martin-Flores (Contact Author)

CUNEF ( email )

Calle de Leonardo Prieto Castro, 2
Madrid, Madrid 28040

Arthur Petit-Romec

SKEMA Business School ( email )

Sophia Antipolis

Université Côte d'Azur ( email )


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