ESG controversies and governance: Evidence from the banking industry

Paolo Agnese, Francesca Battaglia, Francesco Busato and Simone Taddeo

Finance Research Letters, 2023, vol. 53, issue C

Abstract: This study empirically investigates the relationship between the Governance pillar of ESG (Environmental, Social and Governance) dynamics and ESG Controversies. We include the three sub-pillars of ESG Governance (ESG Management, ESG Shareholders, and ESG CSR Strategy). Applying the generalized method of moments (GMM) system version of the Arellano-Bond estimator, we analyse a panel dataset of 567 listed banks from United States and Europe, over the period 2016–2021. The findings show a positive and statistically significant relationship between ESG Governance and ESG Controversies scores. Furthermore, we find that these results are confirmed by all three sub-pillars of ESG Governance.

Keywords: Banking industry; Corporate governance; ESG controversies (search for similar items in EconPapers)
JEL-codes: G21 G34 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:53:y:2023:i:c:s1544612322005748

DOI: 10.1016/j.frl.2022.103397

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