Prior literature on ESG and performance in banking sector
| ESG variables | Analyzed dimensions | References | Effects on performance |
|---|---|---|---|
| Environmental | ISO 14001 certifications are related with a positive market reaction | Jacobs et al. (2010) | Positive |
| Environmental philanthropy is considered positively by the market | Jacobs et al. (2010) | Positive | |
| Depositors prefer a bank’s environment and heritage activities | Callado-Munoz and Utreto-González (2011) | Positive | |
| Eco-certification of buildings is related with increased retail revenues | Chang and Devine (2019) | Positive | |
| Banks engaged in environmental protection are also less risky | Gangi et al. (2019) | Positive | |
| Environmental financing positively impacts the bank’s ROE | Nizam et al. (2019) | Positive | |
| Environmental performance positively affects bank’s ROE and ROA | Shakil et al. (2019) | Positive | |
| Share price reaction to Equator Principles adoption is insignificant | Finger et al. (2018) | Insignificant | |
| Environmental costs adversely influence a firm’s financial performance | Jo et al. (2015) | Negative | |
| Eco-certification of buildings is associated with increased retail revenues | Chang and Devine (2019) | Negative | |
| Social | A sustainability report has a positive influence on the bank’s stock price | Carnevale and Mazzuca (2014) | Positive |
| A bank’s degree of engagement in CSR activities is positively related to ROA and ROE | Shen et al. (2016), Wu et al. (2017) | Positive | |
| Employee relations are positively related to ROA | Esteban-Sanchez et al. (2017) | Positive | |
| Inclusion in a sustainability index is positively associated with ROA before the financial crisis | Forcadell and Aracil (2017) | Positive | |
| The product responsibility dimension acts as a significant factor in reducing company crash risk | Utz (2019) | Positive | |
| Access-to-finance for SMEs has a positive impact on ROE | Nizam et al. (2019) | Positive | |
| CSR disclosure is positively related to ROA and ROE for banks in Africa | Siueia et al. (2019) | Positive | |
| Product responsibility is a negative predictor of ROA and ROE | Esteban-Sanchez et al. (2017) | Negative | |
| Community involvement was a negative predictor of ROA during the financial crisis | Esteban-Sanchez et al. (2017) | Negative | |
| Governance | |||
| Stronger corporate governance was associated with higher profitability (ROA) during the financial crisis | Peni and Vähämaa (2012) | Positive | |
| Financial institutions with better governance mechanisms has a higher Tobin’s Q | Zagorchev and Gao (2015) | Positive | |
| Banks with better corporate governance | Esteban-Sanchez et al. (2017) | Positive | |
| Corporate governance index had a positive effect on average monthly stock returns during the financial crisis | Anginer et al. (2018) | Positive | |
| Corporate governance index has a nonsignificant effect on the bank’s stock returns during the crisis | Aebi et al. (2012) | Insignificant | |
| Bank governance reform has a nonsignificant effect on ROA and ROE | Maxfield et al. (2018) | Insignificant | |
| Governance quality has an insignificant effect on a bank’s profitability (ROA and ROE) | Shakil et al. (2019) | Insignificant | |
| Corporate governance index has a nonsignificant effect on ROA | Harkin et al. (2020) | Insignificant | |
| The relationship between the board composition index and stock returns was negative during the financial crisis | Beltratti and Stulz (2012) | Negative | |
| Banks with stronger corporate governance were associated with a lower Tobin’s Q and stock returns during the financial crisis | Peni and Vähämaa (2012) | Negative | |
| Inclusion in a sustainability index is negatively associated with ROA | Forcadell and Aracil (2017) | Negative |
| ISO 14001 certifications are related with a positive market reaction | Positive | ||
| Environmental philanthropy is considered positively by the market | Positive | ||
| Depositors prefer a bank’s environment and heritage activities | Positive | ||
| Eco-certification of buildings is related with increased retail revenues | Positive | ||
| Banks engaged in environmental protection are also less risky | Positive | ||
| Environmental financing positively impacts the bank’s ROE | Positive | ||
| Environmental performance positively affects bank’s ROE and ROA | Positive | ||
| Share price reaction to Equator Principles adoption is insignificant | Insignificant | ||
| Environmental costs adversely influence a firm’s financial performance | Negative | ||
| Eco-certification of buildings is associated with increased retail revenues | Negative | ||
| A sustainability report has a positive influence on the bank’s stock price | Positive | ||
| A bank’s degree of engagement in CSR activities is positively related to ROA and ROE | Positive | ||
| Employee relations are positively related to ROA | Positive | ||
| Inclusion in a sustainability index is positively associated with ROA before the financial crisis | Positive | ||
| The product responsibility dimension acts as a significant factor in reducing company crash risk | Positive | ||
| Access-to-finance for SMEs has a positive impact on ROE | Positive | ||
| CSR disclosure is positively related to ROA and ROE for banks in Africa | Positive | ||
| Product responsibility is a negative predictor of ROA and ROE | Negative | ||
| Community involvement was a negative predictor of ROA during the financial crisis | Negative | ||
| Stronger corporate governance was associated with higher profitability (ROA) during the financial crisis | Positive | ||
| Financial institutions with better governance mechanisms has a higher Tobin’s Q | Positive | ||
| Banks with better corporate governance | Positive | ||
| Corporate governance index had a positive effect on average monthly stock returns during the financial crisis | Positive | ||
| Corporate governance index has a nonsignificant effect on the bank’s stock returns during the crisis | Insignificant | ||
| Bank governance reform has a nonsignificant effect on ROA and ROE | Insignificant | ||
| Governance quality has an insignificant effect on a bank’s profitability (ROA and ROE) | Insignificant | ||
| Corporate governance index has a nonsignificant effect on ROA | Insignificant | ||
| The relationship between the board composition index and stock returns was negative during the financial crisis | Negative | ||
| Banks with stronger corporate governance were associated with a lower Tobin’s Q and stock returns during the financial crisis | Negative | ||
| Inclusion in a sustainability index is negatively associated with ROA | Forcadell and Aracil (2017) | Negative |
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