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ESG controversies and governance: Evidence from the banking industry

Author

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  • Agnese, Paolo
  • Battaglia, Francesca
  • Busato, Francesco
  • Taddeo, Simone

Abstract

This study empirically investigates the relationship between the Governance pillar of ESG (Environmental, Social and Governance) dynamics and ESG Controversies. We include the three sub-pillars of ESG Governance (ESG Management, ESG Shareholders, and ESG CSR Strategy). Applying the generalized method of moments (GMM) system version of the Arellano-Bond estimator, we analyse a panel dataset of 567 listed banks from United States and Europe, over the period 2016–2021. The findings show a positive and statistically significant relationship between ESG Governance and ESG Controversies scores. Furthermore, we find that these results are confirmed by all three sub-pillars of ESG Governance.

Suggested Citation

  • Agnese, Paolo & Battaglia, Francesca & Busato, Francesco & Taddeo, Simone, 2023. "ESG controversies and governance: Evidence from the banking industry," Finance Research Letters, Elsevier, vol. 53(C).
    • Handle: RePEc:eee:finlet:v:53:y:2023:i:c:s1544612322005748
    DOI: 10.1016/j.frl.2022.103397
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    Cited by:

    1. Ann Susan Thomas & Ambili Jayachandran & Ajithakumari Vijayappan Nair Biju, 2024. "Strategic mapping of the environmental social governance landscape in finance – A bibliometric exploration through concepts and themes," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 4428-4453, September.
    2. Massimo Arnone & Lucio Laureti & Alberto Costantiello & Fabio Anobile & Angelo Leogrande, 2024. "The Access to Credit in the Context of the ESG Framework at Global Level," Working Papers hal-04666588, HAL.
    3. Agnese, Paolo & Cerciello, Massimiliano & Oriani, Raffaele & Taddeo, Simone, 2024. "ESG controversies and profitability in the European banking sector," Finance Research Letters, Elsevier, vol. 61(C).
    4. Arnone, Massimo & Leogrande, Angelo, 2024. "The Sustainability of the Factoring Chain in Europe in the Light of the Integration of ESG Factors," MPRA Paper 121342, University Library of Munich, Germany.
    5. Bruno, Elena & Iacoviello, Giuseppina & Giannetti, Caterina, 2024. "Bank credit loss and ESG performance," Finance Research Letters, Elsevier, vol. 59(C).
    6. Paolo Agnese & Francesca Romana Arduino & Massimiliano Cerciello & Simone Taddeo, 2024. "Does board knowledge matter for ESG performance in the European banking industry?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 4454-4468, September.
    7. Gai, Lorenzo & Bellucci, Marco & Biggeri, Mario & Ferrone, Lucia & Ielasi, Federica, 2023. "Banks’ ESG disclosure: A new scoring model," Finance Research Letters, Elsevier, vol. 57(C).
    8. Nejla Ould Daoud Ellili & Cemil Kuzey & Ali Uyar & Abdullah S. Karaman, 2024. "Moderating role of internal factors in corporate social responsibility reporting persistence and corporate market value," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 2878-2899, July.

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    More about this item

    Keywords

    Banking industry; Corporate governance; ESG controversies;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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