The impact of social and environmental sustainability on financial performance: A global analysis of the banking sector
By Esma Nizam, Adam Ng, Ginanjar Dewandaru, R. Nagayev, Malik Abdulrahman Nkoba. Journal of Multinational Financial Management, 2019
328 citations recorded by the source corpus.
Abstract While there is ample evidence that non-financial firms’ financial performance and social and environmental performance are related, evidence for the banking sector remains limited and inconclusive. This paper examines the impact of access to finance and environmental financing on the financial performance of the banking sector globally. Based on cross-sectional linear regressions and non-linear threshold regressions of 713 banks from 75 countries over the period 2013–2015, we find that access to finance has significantly positive effects on banks’ financial performance in most estimation models controlling for both bank-specific and macroeconomic variables. The positive impact on financial performance is channeled through loan growth and management quality. We find that for banks with total assets less than USD 2 billion, access to finance has a significantly positive impact on return to equity. The paper concludes by discussing policy implications.
Subfields: Accounting, Marketing, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/2ec84092aefda6136c92820b55f7f56e52c3f256
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Citations in the corpus
- Banks and environmental, social and governance drivers: Follow the market or the authorities? (2021, unknown): “On the one hand, ROA proxied the effectiveness of a bank producing profits by Variables Obs Mean SD Min Max F IGURE 1 Boxplot of CFPs [Colour figure can be viewed at wileyonlinelibrary.com] exploiting their internal assets; on the other hand, ROE measured how companies manage their capital to produc”
- Corporate social responsibility and bank efficiency (2020, background): “They tend to show a positive link between CSR and some bank profitability indicators such as return on assets or return on equity (Nizam et al., 2019; Wu and Shen, 2013; Shen et al., 2016; Wu et al., 2017).”