Abstract
Purpose: This study investigates the impact of
Environmental, Social, and Governance (ESG) performance
and CSR strategy score on banks' performance across the
European banking sector during the COVID-19 pandemic,
using a mixed theoretical framework (i.e., agency theory and
stakeholder theory).
Methodology: We collected data for 155 banks from 24
European countries spanning six years (2016-2021), cumulating
930 observations. We use a panel data regression model (fixed
effect) to test the study hypotheses.
Findings: The current study's findings revealed that the
influence of the ESG pillar scores on banks' operational and
financial performances varies in intensity. Our results revealed
a positive and significant influence of the governance pillar
score on the banks' performance, while the social pillar score
was negatively and significantly associated with banks'
performance. However, we found no significant influence of
environmental pillar score, CSR strategy score, and human
rights score on European banks' performance. This study
demonstrated the link between the COVID-19 pandemic, ESG
and bank performance. Our results also indicated that bank
size was positively and significantly associated with financial
performance (returns on assets and Equity). At the same time,
Gross Domestic Product affected the bank's financial
performance (return on Equity). Global Sustainable
Competitive Index of the country wasn't significantly related to
banks' performance in Europe.
Originality: Our study offers insights into the existing
literature on the economic implications of ESG performance of
banks in a developed country context, considering the
COVID-19 crisis
Environmental, Social, and Governance (ESG) performance
and CSR strategy score on banks' performance across the
European banking sector during the COVID-19 pandemic,
using a mixed theoretical framework (i.e., agency theory and
stakeholder theory).
Methodology: We collected data for 155 banks from 24
European countries spanning six years (2016-2021), cumulating
930 observations. We use a panel data regression model (fixed
effect) to test the study hypotheses.
Findings: The current study's findings revealed that the
influence of the ESG pillar scores on banks' operational and
financial performances varies in intensity. Our results revealed
a positive and significant influence of the governance pillar
score on the banks' performance, while the social pillar score
was negatively and significantly associated with banks'
performance. However, we found no significant influence of
environmental pillar score, CSR strategy score, and human
rights score on European banks' performance. This study
demonstrated the link between the COVID-19 pandemic, ESG
and bank performance. Our results also indicated that bank
size was positively and significantly associated with financial
performance (returns on assets and Equity). At the same time,
Gross Domestic Product affected the bank's financial
performance (return on Equity). Global Sustainable
Competitive Index of the country wasn't significantly related to
banks' performance in Europe.
Originality: Our study offers insights into the existing
literature on the economic implications of ESG performance of
banks in a developed country context, considering the
COVID-19 crisis
| Original language | English |
|---|---|
| Publication status | Published - 29 Mar 2023 |
| Event | 46th ISTANBUL International Conference on Studies in Humanities, Social Sciences and Management - Turkey, Istanbul, Turkey Duration: 27 Mar 2023 → 29 Mar 2023 http://uruae.org/siteadmin/upload/7585UH0323403.pdf |
Conference
| Conference | 46th ISTANBUL International Conference on Studies in Humanities, Social Sciences and Management |
|---|---|
| Abbreviated title | SHSSM-23 |
| Country/Territory | Turkey |
| City | Istanbul |
| Period | 27/03/23 → 29/03/23 |
| Internet address |