Table 11

Summary of hypothesis testing results

HypothesisDescriptionResultSupported?Remarks
H1aESG performance positively influences profitabilitySupported in Non-SOCBs, JSCBs, RCBsYesStrong positive coefficients at 1% level
H1bESG performance negatively influences profitabilitySupported in SOCBs, UCBsYesSOCBs (−0.012), UCBs (−0.002)
H2aEnvironmental performance positively impacts profitabilitySupported in Non-SOCBs, JSCBsYesCoefficients: 0.004 and 0.005 at 1% level
H2bEnvironmental performance negatively impacts profitabilitySupported in SOCBs, Non-JSCBsYesCoefficients: −0.002 and −0.007 at 1% level
H3aSocial performance positively impacts profitabilitySupported in Non-SOCBs, JSCBs, RCBsYesStrongest for RCBs (0.015), all significant at 1%
H3bSocial performance negatively impacts profitabilitySupported in SOCBsYesCoefficient: −0.007 at 1% level
H4aGovernance performance positively impacts profitabilityWeak evidence in JSCBs onlyPartiallyJSCBs (0.001, marginal)
H4bGovernance performance negatively impacts profitabilitySupported in UCBs, Non-SOCBs, RCBsYesNegative coefficients across groups, significant at 1–5%

Note(s): This table summarizes the results of hypotheses H1a–H4b across different bank types. The findings reflect the heterogeneity in the relationship between ESG components (Environmental, Social, and Governance) and corporate profitability (ROA). “Supported” indicates statistical significance in the expected direction; “Not Supported” denotes insignificant or opposite-direction results. Significance levels are based on p-values: ***p < 0.01, **p < 0.05, *p < 0.1

Source(s): Authors’ own work
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