ESG dimensions and bank performance: an empirical investigation in Italy

IF 5.5 Q1 BUSINESS

Corporate Governance-The International Journal of Business in Society Pub Date : 2022-10-17 DOI:10.1108/cg-03-2022-0094

Elisa Menicucci, Guido Paolucci

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引用次数: 7

Abstract

Purpose This study aims to investigate the impact of environmental performance, social responsibility and corporate governance (ESG) on bank performance (BP) in the Italian banking sector. It analyzes the relationships between 10 dimensions of ESG pillars and BP indicators during the period 2016–2020. Design/methodology/approach This study examines a sample of 105 Italian banks and develops three econometric models to verify the effect of ESG initiatives on BP indicators. The independent variables are the ESG dimensions collected from the Refinitiv database, whereas the explanatory variables are performance indicators measured through accounting and market variables. Findings The findings show that ESG policies negatively affect operational and market performance in the banking sector, suggesting that Italian banks have not fully embraced strong sustainability procedures. However, the relationships between ESG dimensions are mixed if measured individually. The results show a significant positive impact of emission and waste reductions on financial and operating performance, but regarding social aspects, it is proved that better product responsibility decreases accounting performance. Research limitations/implications This study offers an in-depth examination of ESG practices in relation to current and future performance. In particular, the findings provide practitioners and academics with an actual set of predictors in the ESG area to improve BP. Originality/value To the best of the authors’ knowledge, this is the only study that has investigated the impact of ESG issues on BP in Italy. Few prior studies have used all dimensions of ESG policies at a disaggregated level to investigate their effect on various performance indicators.

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ESG维度与银行绩效:意大利的实证调查

本研究旨在探讨意大利银行业环境绩效、社会责任和公司治理(ESG)对银行绩效(BP)的影响。分析了2016-2020年ESG支柱的10个维度与BP指标之间的关系。本研究考察了105家意大利银行的样本，并开发了三个计量经济学模型来验证ESG举措对BP指标的影响。自变量是从Refinitiv数据库中收集的ESG维度，而解释变量是通过会计和市场变量衡量的绩效指标。研究结果表明，ESG政策对银行业的运营和市场表现产生了负面影响，这表明意大利银行尚未完全接受强有力的可持续性程序。然而，如果单独衡量，ESG各维度之间的关系是混合的。结果表明，减少排放和废物对财务和经营绩效有显著的正向影响，但在社会方面，证明了更好的产品责任会降低会计绩效。研究局限/启示本研究对ESG实践与当前和未来绩效的关系进行了深入研究。特别是，研究结果为从业者和学者提供了一套实际的ESG预测指标，以改善BP。原创性/价值据作者所知，这是唯一一项调查ESG问题对英国石油在意大利的影响的研究。以前很少有研究在分类层面上使用ESG政策的所有维度来调查其对各种绩效指标的影响。

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

Corporate Governance-The International Journal of Business in Society BUSINESS-

CiteScore

11.20

自引率

33.90%

发文量

期刊介绍： Providing a consistent source of in-depth information, analysis and advice considering corporate governance on an international scale, Corporate Governance: The International Journal of Business in Society focuses on knowledge development, practice and performance standards for scholars and Boards of Directors/ Governors of companies throughout the world. The journal publishes a diverse range of substantive theoretical and methodological debates as well as practical developments in the field of corporate governance worldwide. The journal particularly encourages attention to the impact of changes of business/corporate governance forms and practices on people, and the sustainability of different governance models. Articles that highlight models and structures that advance the interests, dignity and well being of all stakeholders, in a sustainable manner, are particularly welcome. The journal covers a broad spectrum of governance-related themes including: -Effective boardroom performance -Control and regulation -Executive leadership -The role and contribution of external (non-executive) directors -The growing importance of governance in the wake of ever-greater corporate scandals -Redefinitions and reassessments of corporate governance models -The role of business in society -The changing nature of the relationship and responsibilities of the firm towards various stakeholders -The incentives required to encourage more socially- and environmentally-responsible corporate action -The role and impact of local and international regulatory agencies and regimes on corporate behaviour.