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ESG Performance and Shareholder Value Creation in the Banking Industry: International Differences

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  • María Mar Miralles-Quirós

    (Department of Financial Economics, University of Extremadura, 06006 Badajoz, Spain)

  • José Luis Miralles-Quirós

    (Department of Financial Economics, University of Extremadura, 06006 Badajoz, Spain)

  • Jesús Redondo Hernández

    (Department of Financial Economics, University of Extremadura, 06006 Badajoz, Spain)

Abstract

The aim of this paper is to study the role of socially responsible activities on shareholder value creation in a sample of 166 banks from 31 countries over the 2010–2015 period. Prior research about this relationship is scarce and limited to the period before and during the global financial crisis. In contrast, this research analyzes banks over a period of time when these institutions have increased their social responsibility practices in order to reinforce their credibility and the trust their stakeholders have in them. More precisely, we analyze the relationship between these two magnitudes distinguishing between environmental, social, and corporate governance actions as well as between countries taking into account the level of development, legal systems, and the geographic area. Our findings are relevant not only for academics, but also for the managers of these companies, policymakers, investors, and society in general.

Suggested Citation

  • María Mar Miralles-Quirós & José Luis Miralles-Quirós & Jesús Redondo Hernández, 2019. "ESG Performance and Shareholder Value Creation in the Banking Industry: International Differences," Sustainability, MDPI, vol. 11(5), pages 1-15, March.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:5:p:1404-:d:211587
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    References listed on IDEAS

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    Cited by:

    1. Caby, Jérôme & Ziane, Ydriss & Lamarque, Eric, 2020. "The determinants of voluntary climate change disclosure commitment and quality in the banking industry," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    2. Remigiusz Tunowski, 2020. "Sustainability of Commercial Banks Supported by Business Intelligence System," Sustainability, MDPI, vol. 12(11), pages 1-17, June.
    3. Hai-Yen Chang & Lien-Wen Liang & Yu-Luan Liu, 2021. "Using Environmental, Social, Governance (ESG) and Financial Indicators to Measure Bank Cost Efficiency in Asia," Sustainability, MDPI, vol. 13(20), pages 1-20, October.
    4. Rim El Khoury & Nohade Nasrallah & Khaled Hussainey, 2022. "Exploring the performance of responsible companies in G20 during the COVID-19 outbreak," Post-Print hal-03761427, HAL.
    5. Juan J. Nájera-Sánchez, 2019. "A Systematic Review of Sustainable Banking through a Co-Word Analysis," Sustainability, MDPI, vol. 12(1), pages 1-23, December.
    6. Cabral, Natália Gomes Cavalcante & Gohr, Cláudia Fabiana, 2023. "Sustainable value creation in sharing economy: Conceptual framework proposition and application in Brazilian offline communities," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).

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