Given the central role of banks in financial stability and the recent impact of their insufficient capitalization, this article focuses on finding determinants of their solvency through financial variables. The study considers the European Banking Union framework and the results of the latter stress test exercises, using a panel of the 45 banks based in 15 European countries that were stress tested in 2014, 2016 and 2018. This paper models bank soundness proxied by the stressed tier capital 1 ratio by means of financial indicators representing a CAMELS (Capital, Assets quality, Management, Earnings, Liquidity and Sensitivity to market risk) approach as well as global systemically important financial institutions (G-SIFIs) additional requirements. The model also specifies a dummy covariate referred to the disclosure of corporate social responsibility (CSR) reports, adopting a comprehensive sustainability scheme. The research period starts with the European Banking Union and includes the three exercises conducted since then. We find that financial sustainability is positively correlated with higher capitalization, earnings and liquid assets, while poor quality assets (high non-performing loans) and inefficiency impact negatively on bank soundness. Moreover, it considers the year-scenario interaction either as a fixed or a random effect. The results support capital and liquidity regulation and highlight factors that reinforce banking soundness. They also reveal a positive connection between CSR and banking solvency.

ResumenLas entidades de crédito españolas afrontan un escenario caracterizado por la crisis financiera y las crecientes exigencias de capital. Sumidas en un proceso de recapitalización y reestructuración, recientemente han sido sometidas a tests de estrés para analizar su nivel de solvencia y su capacidad de resistencia ante un mayor deterioro económico.El objetivo de este trabajo es analizar si los resultados de dichas pruebas, medidos en términos de exceso o déficit de capital, pueden predecirse a partir de indicadores extraídos de los estados contables públicos o de la información con relevancia prudencial. Para ello, se aplican tanto un análisis de regresión logística estándar como su versión exacta, que resulta más adecuada dado el bajo tamaño muestral.Los principales resultados indican que tanto la ratio de autonomía (fondos propios/fondos ajenos) como la calidad de los recursos propios son variables con una gran capacidad predictiva.La principal aportación de este trabajo es revisar y contrastar los resultados de las pruebas de resistencia aplicadas a la banca española, identificando ratios contables que prácticamente permiten llegar a sus mismas conclusiones.AbstractThe Spanish financial system faces a new situation defined by a financial crisis and higher capital requirements. These institutions are involved in a restructuring and refinancing process, and have recently been submitted to a stress test in order to check their solvency and resilience against increasingly worse economic conditions.This study aims to predict the stress test results–capital excess or shortfall–by means of indicators obtained from the financial statements and from the Prudential Relevance report. Both standard and exact logistic regressions are used due to the small sample size considered.The results show that both autonomy ratio (equity vs. debt) and best quality capital have a strong predictive capability.The main contribution of this paper is to contrast the Spanish banking stress test results by identifying accounting ratios that allow almost the same conclusions to be reached

Using a multilevel regression model, this article aims to find determinants of banking solvency in the European Union. The endogenous variable is defined as the capital ratio determined by stress tests. Both internal (financial ratios and sovereign debt exposures) and external (macroeconomic indicators) variables are proposed as covariates. The results reveal that capitalization, earnings, assets structure and exposure to PIIGS (Portugal, Italy, Ireland, Greece and Spain) sovereign debt are significant among the former, and economic growth, interest and exchange rates, and real estate prices among the latter.

As global financial markets increasingly integrate non‐financial criteria, companies are reinforcing the strategic role of sustainability and its impact on market value, although this cannot overlook how different institutional structures shape investor perceptions. This study examines (i) whether firms with higher environmental, social and governance (ESG) performance are perceived by markets as having greater future growth opportunities, and (ii) how institutional environments, measured through the dimensions of the Quintuple Helix Model (QHM), namely the economic, educational, political–legal, cultural and environmental systems, condition this relationship. Based on a panel of European listed companies over the 2013–2023 period, we find that companies with stronger sustainability performance are generally associated with higher growth potential, suggesting that ESG engagement is recognized by investors as a relevant dimension of organizations' expectations. The analysis also reveals cross‐country differences in this association, consistent with the idea that markets interpret sustainability through their own institutional contexts.

This paper aims to investigate the effect of management control (MC) tools on knowledge transfer (KT) activities by acknowledging the differences between lecturers from social sciences, arts and humanities (SAH) and science, health and engineering (SHE). The study considers enabling and coercive uses of MC tools. A total of 3,812 Spanish university lecturers participated in the study. They were surveyed about different MC tools – strategic plans, budgeting, meetings, and reward systems – and different KT activities – R&D contracts, patents, extended patents, licenses, services and spin-offs –, for the 2011-2016 period. A logit model was applied for the statistical analyses. The results support differences by disciplines in meetings and enabling reward systems that are only effective for SHE lecturers. However, the impact of coercive reward systems and coercive strategic plans are visible regardless discipline. In terms of KT activities, distinctions between R&D contracts, on the one hand, and patents and licenses, on the other, are also significant. The findings can help policymakers. (i.e., chancellors and management teams) to propose more efficient area-specific MC tools to properly enhance KT performance. Applying these results to universities management can better contribute to economic growth and sustainable development through their third mission activities.