Does environmental, social, and governance disclosure affect financial performance? An empirical study of Southeast and East Asia commercial banks

Hung Manh Pham (), Nham Linh Vuong (), Dung Viet Tran (), Minh Thi Hai Ngo () and Trung Tien Le ()
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Hung Manh Pham: Banking Academy of Vietnam
Nham Linh Vuong: Banking Academy of Vietnam
Dung Viet Tran: Banking Academy of Vietnam
Minh Thi Hai Ngo: IBD, National Economics University
Trung Tien Le: Bank for Investment and Development of Vietnam (BIDV)

Asia-Pacific Journal of Regional Science, 2025, vol. 9, issue 1, No 1, 26 pages

Abstract: Abstract This research aims to investigate the impact of environmental, social and governance (ESG) disclosure on the financial performance of commercial banks operating in Southeast and East Asia. Specifically, this study examines a sample of 40 Southeast and East Asian banks from 2009 to 2021 to verify the influence of ESG initiatives and each environmental, social, and governance dimension on their performance. The results indicate that ESG disclosure has an adverse impact on financial performance within the banking industry. However, upon closer examination, the associations between ESG dimensions present a mixture of favorable and unfavorable consequences. The positive effect of the governance pillar on bank performance is demonstrated by the findings. Conversely, the social and environmental aspects of ESG are inversely proportional to the banks’ performance.

Keywords: Environmental performance; Social responsibility; Corporate governance; ESG; Sustainable development (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s41685-024-00361-7

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