Self-regulation for responsible banking and ESG disclosure scores: Is there a link?

IF 5.4 2区经济学 Q1 BUSINESS, FINANCE

Journal of International Financial Markets Institutions & Money Pub Date : 2024-11-09 DOI:10.1016/j.intfin.2024.102079

Ronny Manos, Maya Finger, Haim Boukai

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Abstract

Banks play a crucial role in sustainable development, an area increasingly governed by self-regulation. This study examines whether banks that commit to self-regulation by adopting the Principles for Responsible Banking (PRB) exhibit enhanced Environment, Social, and Governance (ESG) performance. Utilizing Bloomberg ratings, we find that PRB adopters consistently show higher ESG scores than non-adopters, both before and after adoption. This suggests that a commitment to self-regulation serves as a reliable signal of responsible banking practices. Notably, the superior performance of PRB adopters relative to non-adopters is primarily driven by a strong pre-adoption commitment to transparency on ESG issues. We discuss possible explanations for this trend, including the role of early adopters in advancing industry-wide standards. Additionally, our findings reveal a negative association between regulatory quality and ESG scores, implying that banks may leverage ESG disclosures to mitigate information asymmetries in weaker institutional environments.

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负责任的银行业自律与环境、社会和公司治理披露得分：两者之间有联系吗？

银行在可持续发展中发挥着至关重要的作用，而这一领域越来越多地受到自律监管。本研究探讨了通过采用《负责任银行业原则》（PRB）致力于自律的银行是否表现出更高的环境、社会和治理（ESG）绩效。利用彭博社的评级，我们发现采用《责任银行原则》的银行在采用前后的环境、社会和治理得分均高于未采用者。这表明，自律承诺是负责任银行实践的可靠信号。值得注意的是，PRB 采用者相对于非采用者的优异表现主要是由于采用前对 ESG 问题透明度的坚定承诺。我们讨论了这一趋势的可能解释，包括早期采用者在推进全行业标准方面的作用。此外，我们的研究结果表明，监管质量与 ESG 分数之间存在负相关关系，这意味着在较弱的制度环境中，银行可能会利用 ESG 披露来缓解信息不对称问题。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of International Financial Markets Institutions & Money Multiple-

CiteScore

6.60

自引率

10.00%

发文量

142

期刊介绍： International trade, financing and investments, and the related cash and credit transactions, have grown at an extremely rapid pace in recent years. The international monetary system has continued to evolve to accommodate the need for foreign-currency denominated transactions and in the process has provided opportunities for its ongoing observation and study. The purpose of the Journal of International Financial Markets, Institutions & Money is to publish rigorous, original articles dealing with the international aspects of financial markets, institutions and money. Theoretical/conceptual and empirical papers providing meaningful insights into the subject areas will be considered. The following topic areas, although not exhaustive, are representative of the coverage in this Journal. • International financial markets • International securities markets • Foreign exchange markets • Eurocurrency markets • International syndications • Term structures of Eurocurrency rates • Determination of exchange rates • Information, speculation and parity • Forward rates and swaps • International payment mechanisms • International commercial banking; • International investment banking • Central bank intervention • International monetary systems • Balance of payments.