ESG performance and capital investment: Understanding the role of bank financing in BRICS countries

IF 6.3 2区经济学 Q1 BUSINESS, FINANCE

Research in International Business and Finance Pub Date : 2025-07-01 DOI:10.1016/j.ribaf.2025.103058

Jun Wen , Umar Farooq , Abdulrahman Alomair , Abdulaziz S. Al Naim

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Abstract

The incorporation of environmental, social, and governance (ESG) practices into financial decision-making has become increasingly notable. This study examines the impact of ESG performance on corporate capital investment, as well as the intervening role of bank financing, in BRICS countries. The study utilizes a comprehensive dataset over the period 2010–2022 and employs fixed effect and system generalized method of moments (GMM) models to analyze the data. The empirical findings reveal a positive impact of corporate ESG performance and bank financing on capital investment. Notably, bank financing emerges as a significant factor positively influencing capital investment decisions, suggesting a crucial role in bridging sustainable finance and capital allocation. The study identifies a mediating relationship, emphasizing that the positive effect of ESG performance on capital investment remains consistent in the presence of bank financing. Corporate investors, financial institutions, and policymakers can gain actionable insights from the findings. It guides corporate investors in understanding how ESG performance influences investment attractiveness, assists financial institutions in refining lending practices, and provides policymakers with insights for shaping regulations that foster sustainable practices. As businesses and investors recognize the imperative of integrating ESG considerations, the insights from this study contribute to a more sustainable and resilient global financial system. This study contributes to existing literature by addressing gaps in understanding the nuanced impact of ESG performance on capital investment decisions and the mediating role of bank financing.

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ESG绩效与资本投资：理解金砖国家银行融资的作用

将环境、社会和治理（ESG）实践纳入财务决策已经变得越来越引人注目。本研究考察了金砖国家ESG绩效对企业资本投资的影响，以及银行融资的干预作用。本研究利用2010-2022年的综合数据集，采用固定效应和系统广义矩量法（GMM）模型对数据进行分析。实证结果表明，企业ESG绩效和银行融资对资本投资具有正向影响。值得注意的是，银行融资成为积极影响资本投资决策的重要因素，这表明在连接可持续融资和资本配置方面发挥了关键作用。该研究确定了一种中介关系，强调在银行融资存在的情况下，ESG绩效对资本投资的积极影响保持一致。企业投资者、金融机构和政策制定者可以从研究结果中获得可操作的见解。它引导企业投资者了解ESG绩效如何影响投资吸引力，帮助金融机构改进贷款做法，并为政策制定者提供制定促进可持续做法的法规的见解。随着企业和投资者认识到整合ESG因素的必要性，本研究的见解有助于建立更具可持续性和弹性的全球金融体系。本研究通过解决在理解ESG绩效对资本投资决策的细微影响以及银行融资的中介作用方面的差距，为现有文献做出了贡献。

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

Research in International Business and Finance BUSINESS, FINANCE-

CiteScore

11.20

自引率

9.20%

发文量

240

期刊介绍： Research in International Business and Finance (RIBAF) seeks to consolidate its position as a premier scholarly vehicle of academic finance. The Journal publishes high quality, insightful, well-written papers that explore current and new issues in international finance. Papers that foster dialogue, innovation, and intellectual risk-taking in financial studies; as well as shed light on the interaction between finance and broader societal concerns are particularly appreciated. The Journal welcomes submissions that seek to expand the boundaries of academic finance and otherwise challenge the discipline. Papers studying finance using a variety of methodologies; as well as interdisciplinary studies will be considered for publication. Papers that examine topical issues using extensive international data sets are welcome. Single-country studies can also be considered for publication provided that they develop novel methodological and theoretical approaches or fall within the Journal''s priority themes. It is especially important that single-country studies communicate to the reader why the particular chosen country is especially relevant to the issue being investigated. [...] The scope of topics that are most interesting to RIBAF readers include the following: -Financial markets and institutions -Financial practices and sustainability -The impact of national culture on finance -The impact of formal and informal institutions on finance -Privatizations, public financing, and nonprofit issues in finance -Interdisciplinary financial studies -Finance and international development -International financial crises and regulation -Financialization studies -International financial integration and architecture -Behavioral aspects in finance -Consumer finance -Methodologies and conceptualization issues related to finance