Table 5 The impact of ESG on corporate...

Table 5

The impact of ESG on corporate profitability (state-owned bank, non-state-owned bank, joint stock, non-joint, rural, and Urban banks)

Variables	(1)	(2)	(3)	(4)	(5)	(6)
	SOCB	Non-SOCB	Joint	Non-joint	Rural	Urban
	ROA	ROA	ROA	ROA	ROA	ROA
ESG	−0.012***	0.008***	0.006***	−0.003***	0.005***	−0.002***
ESG	(0.004)	(0.002)	(0.002)	(0.001)	(0.002)	(0.002)
Size	0.008***	0.010***	0.009***	0.007***	0.011***	0.006***
Size	(0.002)	(0.001)	(0.001)	(0.002)	(0.001)	(0.002)
Lev	−0.120***	−0.150***	−0.130***	−0.140***	−0.110***	−0.160***
Lev	(0.010)	(0.008)	(0.009)	(0.008)	(0.010)	(0.009)
CAR	0.150**	0.200**	0.180**	0.160**	0.170**	0.140**
CAR	(0.060)	(0.050)	(0.055)	(0.065)	(0.055)	(0.060)
GRW	0.025***	0.030***	0.028***	0.022***	0.035***	0.020***
GRW	(0.005)	(0.004)	(0.004)	(0.0505)	(0.004)	(0.005)
Age	−0.008**	−0.010**	−0.009**	−0.007**	−0.012**	−0.006**
Age	(0.003)	(0.002)	(0.003)	(0.004)	(0.003)	(0.003)
B_Indp	−0.010**	−0.012**	−0.011**	−0.009**	−0.015**	−0.008**
B_Indp	(0.005)	(0.004)	(0.004)	(0.005)	(0.004)	(0.005)
Bsize	0.003	0.002	0.004*	0.001	0.005**	−0.002
Bsize	(0.003)	(0.002)	(0.002)	(0.003)	(0.002)	(0.003)
Top1	0.038***	0.045***	0.042***	0.035***	0.050***	0.030***
Top1	(0.008)	(0.006)	(0.007)	(0.008)	(0.006)	(0.008)
Duality	−0.001	0.003***	0.002**	0.001	0.004***	0.001
Duality	(0.001)	(0.002)	(0.001)	(0.001)	(0.002)	(0.001)
Bgender	0.008***	0.012***	0.010***	0.007***	0.015***	0.006***
Bgender	(0.003)	(0.002)	(0.002)	(0.003)	(0.002)	(0.003)
Liq	0.013***	0.011***	0.004***	0.013***	0.002***	0.031***
Liq	(0.002)	(0.001)	(0.003)	(0.002)	(0.002)	(0.003)
Constant	−0.162***	−0.185***	−0.042***	−0.294***	−0.042***	−0.005***
Constant	(0.006)	(0.008)	(0.009)	(-0.026)	(0.089)	(0.009)
Observations	55	248	96	207	52	100
R-squared	0.950	0.951	0.404	0.395	0.404	0.395
Number of firms	5	37	10	32	10	17
Firm FE	YES	YES	YES	YES	YES	YES
Year FE	YES	YES	YES	YES	YES	YES

Variables	(1)	(2)	(3)	(4)	(5)	(6)
	SOCB	Non-SOCB	Joint	Non-joint	Rural	Urban
	ROA	ROA	ROA	ROA	ROA	ROA
ESG	−0.012***	0.008***	0.006***	−0.003***	0.005***	−0.002***
ESG	(0.004)	(0.002)	(0.002)	(0.001)	(0.002)	(0.002)
Size	0.008***	0.010***	0.009***	0.007***	0.011***	0.006***
Size	(0.002)	(0.001)	(0.001)	(0.002)	(0.001)	(0.002)
Lev	−0.120***	−0.150***	−0.130***	−0.140***	−0.110***	−0.160***
Lev	(0.010)	(0.008)	(0.009)	(0.008)	(0.010)	(0.009)
CAR	0.150**	0.200**	0.180**	0.160**	0.170**	0.140**
CAR	(0.060)	(0.050)	(0.055)	(0.065)	(0.055)	(0.060)
GRW	0.025***	0.030***	0.028***	0.022***	0.035***	0.020***
GRW	(0.005)	(0.004)	(0.004)	(0.0505)	(0.004)	(0.005)
Age	−0.008**	−0.010**	−0.009**	−0.007**	−0.012**	−0.006**
Age	(0.003)	(0.002)	(0.003)	(0.004)	(0.003)	(0.003)
B_Indp	−0.010**	−0.012**	−0.011**	−0.009**	−0.015**	−0.008**
B_Indp	(0.005)	(0.004)	(0.004)	(0.005)	(0.004)	(0.005)
Bsize	0.003	0.002	0.004*	0.001	0.005**	−0.002
Bsize	(0.003)	(0.002)	(0.002)	(0.003)	(0.002)	(0.003)
Top1	0.038***	0.045***	0.042***	0.035***	0.050***	0.030***
Top1	(0.008)	(0.006)	(0.007)	(0.008)	(0.006)	(0.008)
Duality	−0.001	0.003***	0.002**	0.001	0.004***	0.001
Duality	(0.001)	(0.002)	(0.001)	(0.001)	(0.002)	(0.001)
Bgender	0.008***	0.012***	0.010***	0.007***	0.015***	0.006***
Bgender	(0.003)	(0.002)	(0.002)	(0.003)	(0.002)	(0.003)
Liq	0.013***	0.011***	0.004***	0.013***	0.002***	0.031***
Liq	(0.002)	(0.001)	(0.003)	(0.002)	(0.002)	(0.003)
Constant	−0.162***	−0.185***	−0.042***	−0.294***	−0.042***	−0.005***
Constant	(0.006)	(0.008)	(0.009)	(-0.026)	(0.089)	(0.009)
Observations	55	248	96	207	52	100
R-squared	0.950	0.951	0.404	0.395	0.404	0.395
Number of firms	5	37	10	32	10	17
Firm FE	YES	YES	YES	YES	YES	YES
Year FE	YES	YES	YES	YES	YES	YES

Note(s): This table reports fixed effects regression results estimating the effect of ESG performance on return on assets (ROA) across different bank categories: state-owned (SOCB), non-state-owned, joint-stock, non-joint-stock, rural, and urban banks. All models include firm and year fixed effects. Robust standard errors are in parentheses. ***, **, and * indicate significance at the 1%, 5%, and 10% levels, respectively

Source(s): Authors’ own work

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