IDEAS home Printed from https://ideas.repec.org/a/ids/ijbget/v18y2024i4-5p357-374.html
   My bibliography  Save this article

Investment in ESG activities and bank performance: does bank ownership matter?

Author

Listed:
  • Marc Kouzez
  • Ji-Yong Lee
  • Jomana Mahfod-Leroux

Abstract

In this paper, we investigate the relation between environmental, social and governance (ESG) activities and bank performance in European markets. Different from existing literature, we also explore whether ESG activities differently affect the performance of foreign-owned banks and domestic-owned banks. The results show that higher involvement in ESG activities is associated with better performance only for foreign-owned banks, and suggest that investment in ESG activities is relevant for foreign banks since it helps to obtain legitimacy in foreign markets, and enhance their reputation on international level. Our findings provide a better understanding of whether a bank's ESG activities are in the interest of shareholders, and partially explain the contradictory results in previous studies.

Suggested Citation

  • Marc Kouzez & Ji-Yong Lee & Jomana Mahfod-Leroux, 2024. "Investment in ESG activities and bank performance: does bank ownership matter?," International Journal of Business Governance and Ethics, Inderscience Enterprises Ltd, vol. 18(4/5), pages 357-374.
    • Handle: RePEc:ids:ijbget:v:18:y:2024:i:4/5:p:357-374
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=139628
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijbget:v:18:y:2024:i:4/5:p:357-374. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=70 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.