CSR and banks' financial performance: evidence from the US banking sector

George Giannopoulos, Hadil Gouda, Sofia Asonitou and Nicos Sykianakis

International Journal of Accounting, Auditing and Performance Evaluation, 2025, vol. 21, issue 3/4, 348-372

Abstract: In a world marked by constant evolution and a growing emphasis on global corporate responsibility, corporate social responsibility (CSR) practices and environmental, social, and governance (ESG) initiatives have gained paramount significance. Amidst this evolving landscape, this research study delves into the intricate relationship between ESG initiatives and the financial performance of US banks. Spanning from 2010 to 2019, this study meticulously investigates the interplay between ESG scores, as a proxy of ESG engagements, and financial performance metrics, mainly focusing on return on assets (ROA) and return on equity (ROE). This investigation offers insights by exploring this correlation within the realm of US banking, a dimension hitherto less explored. Through data regression analysis, our findings underscore a robust and statistically significant relationship between ESG initiatives and financial performance, resonating with the evolving discourse surrounding global CSR practices. This research study thus advances our comprehension of the intricate dynamics that define the interconnection between CSR practices, ESG initiatives, and the financial performance of US banks.

Keywords: ESG; environmental, social, and governance; ROE; return on equity; ROA; return on assets; financial performance; banking sector. (search for similar items in EconPapers)
Date: 2025
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