The impact of social and environmental sustainability on financial performance: a global analysis of the banking sector
| Autor: | Ginanjar Dewandaru, Esma Nizam, Adam Ng, Ruslan Nagayev, Malik Abdul Rahman Nkoba |
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| Jazyk: | angličtina |
| Rok vydání: | 2019 |
| Předmět: |
040101 forestry
Economics and Econometrics 050208 finance Financial performance Threshold 05 social sciences Equity (finance) Management quality Financial system Bank performance 04 agricultural and veterinary sciences Banking sector Sustainability Loan ESG 0502 economics and business Environmental financing 0401 agriculture forestry and fisheries Access to finance Business Finance |
| Popis: | WOS: 000462176000003 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. (C) 2019 Elsevier B.V. All rights reserved. Khazanah Nasional Berhad (sovereign wealth fund of the Government of Malaysia) This research was funded by a research grant from Khazanah Nasional Berhad (sovereign wealth fund of the Government of Malaysia). All views and errors are of the authors |
| Databáze: | OpenAIRE |
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