Investment in ESG activities and bank performance: does bank ownership matter?

Marc Kouzez (), Ji-Yong Lee () and Jomana Leroux ()
Additional contact information
Marc Kouzez: CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - UL - Université de Lorraine, ICN Business School
Ji-Yong Lee: Audencia Business School
Jomana Leroux: UO - Université d'Orléans

Post-Print from HAL

Abstract: In this paper, we investigate the relation between environmental, social and governance (ESG) activities and bank performance in European markets. Different from existing literature, we also explore whether ESG activities differently affect the performance of foreign-owned banks and domestic-owned banks. The results show that higher involvement in ESG activities is associated with better performance only for foreign-owned banks, and suggest that investment in ESG activities is relevant for foreign banks since it helps to obtain legitimacy in foreign markets, and enhance their reputation on international level. Our findings provide a better understanding of whether a banks ESG activities are in the interest of shareholders, and partially explain the contradictory results in previous studies.

Keywords: bank performance; ESG; foreign banks; Bank Performance; Foreign Banks (search for similar items in EconPapers)
Date: 2024-05
Note: View the original document on HAL open archive server: https://hal.science/hal-03859287v1
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in International Journal of Business Governance and Ethics, 2024, 18 (4/5), ⟨10.1504/IJBGE.2023.10053288⟩

Downloads: (external link)
https://hal.science/hal-03859287v1/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03859287

DOI: 10.1504/IJBGE.2023.10053288

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().