Corporate Governance and ESG Controversies: Navigating Risk‐Taking in Banks

IF 12.5 1区管理学 Q1 BUSINESS

Business Strategy and The Environment Pub Date : 2025-02-23 DOI:10.1002/bse.4214

Nicola Del Sarto

引用次数: 0

Abstract

This study examines the impact of environmental, social, and governance (ESG) controversies on bank risk, focusing on the moderating role of corporate governance. Using a dynamic panel dataset of 88 European banks from 2013 to 2020, we analyze two key risk measures: the Z‐score, indicating financial stability, and risk‐weighted assets (RWAs), reflecting risk exposure. The findings reveal that banks facing ESG controversies are exposed to heightened risk, with corporate governance playing a crucial role in moderating these effects. Strong governance structures, characterized by board diversity and independence, are found to mitigate the financial risks associated with ESG controversies, whereas weak governance amplifies these risks. Our results contribute to the growing literature on ESG and bank risk by highlighting the complexities introduced by ESG controversies and the essential role of governance in managing these risks. These insights are relevant for both academics and practitioners seeking to enhance risk management frameworks in the banking sector.

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本研究探讨了环境、社会和治理（ESG）争议对银行风险的影响，重点关注公司治理的调节作用。我们使用 2013 年至 2020 年 88 家欧洲银行的动态面板数据集，分析了两个关键的风险指标：表示金融稳定性的 Z 值和反映风险敞口的风险加权资产 (RWA)。研究结果表明，面临环境、社会和公司治理争议的银行面临着更高的风险，而公司治理在缓和这些影响方面发挥着至关重要的作用。以董事会多样性和独立性为特征的强治理结构可降低与环境、社会和治理争议相关的金融风险，而弱治理则会放大这些风险。我们的研究结果强调了环境、社会和公司治理争议所带来的复杂性以及治理在管理这些风险中的重要作用，从而为有关环境、社会和公司治理以及银行风险的不断增长的文献做出了贡献。这些见解对寻求加强银行业风险管理框架的学术界和从业人员都有借鉴意义。

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

Business Strategy and The Environment Multiple-

CiteScore

22.50

自引率

19.40%

发文量

336

期刊介绍： Business Strategy and the Environment (BSE) is a leading academic journal focused on business strategies for improving the natural environment. It publishes peer-reviewed research on various topics such as systems and standards, environmental performance, disclosure, eco-innovation, corporate environmental management tools, organizations and management, supply chains, circular economy, governance, green finance, industry sectors, and responses to climate change and other contemporary environmental issues. The journal aims to provide original contributions that enhance the understanding of sustainability in business. Its target audience includes academics, practitioners, business managers, and consultants. However, BSE does not accept papers on corporate social responsibility (CSR), as this topic is covered by its sibling journal Corporate Social Responsibility and Environmental Management. The journal is indexed in several databases and collections such as ABI/INFORM Collection, Agricultural & Environmental Science Database, BIOBASE, Emerald Management Reviews, GeoArchive, Environment Index, GEOBASE, INSPEC, Technology Collection, and Web of Science.