Bank credit loss and ESG performance

被引：14

作者：

Bruno, Elena ^{[1
]}

Iacoviello, Giuseppina ^{[1
]}

Giannetti, Caterina ^{[1
]}

机构：

[1] Univ Pisa, Dept Econ & Management, Pisa, Italy

来源：

FINANCE RESEARCH LETTERS | 2024年 / 59卷

关键词：

Non-performing loans; Banks; ESGC score; Fractional logit; PREDICTION;

D O I：

10.1016/j.frl.2023.104719

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

We study the impact of ESG scores on Non-performing loans (NPLs) for a sample of European listed banks over the period 2002-2020. Relying on two different types of instrumental variables and fractional logit estimations, we find that banks with greater levels of the ESG score have higher levels of NPLs. The main effect goes through the Governance pillar and Controversies components. Our findings suggest that even if ESG practices may enhance bank value and stability, a negative effect may directly emerge from the loan loss channel.

引用

收藏

页数：6

相关论文

共 25 条

[1] ESG and systemic risk [J].

Aevoae, George Marian ;

Andries, Alin Marius ;

Ongena, Steven ;

Sprincean, Nicu .

APPLIED ECONOMICS, 2023, 55 (27) :3085-3109

[2] Comparing the performance of market-based and accounting-based bankruptcy prediction models [J].

Agarwal, Vineet ;

Taffler, Richard .

JOURNAL OF BANKING & FINANCE, 2008, 32 (08) :1541-1551

[3] ESG controversies and governance: Evidence from the banking industry [J].

Agnese, Paolo ;

Battaglia, Francesca ;

Busato, Francesco ;

Taddeo, Simone .

FINANCE RESEARCH LETTERS, 2023, 53

[4] Bank's funding costs: Do ESG factors really matter? [J].

Agnese, Paolo ;

Giacomini, Emanuela .

FINANCE RESEARCH LETTERS, 2023, 51

[5]

Al-Qudah AA, 2023, ENVIRON SCI POLLUT R, V30, P61381, DOI [10.1007/s11356-021-18224-5, 10.1007/s10660-022-09577-1]

[6] Aggregate Confusion: The Divergence of ESG Ratings* [J].

Berg, Florian ;

Kolbel, Julian F. ;

Rigobon, Roberto .

REVIEW OF FINANCE, 2022, 26 (06) :1315-1344

[7] The Roles of Corporate Governance in Bank Failures during the Recent Financial Crisis [J].

Berger, Allen N. ;

Imbierowicz, Bjorn ;

Rauch, Christian .

JOURNAL OF MONEY CREDIT AND BANKING, 2016, 48 (04) :729-770

[8] Do ESG strategies enhance bank stability during financial turmoil? Evidence from Europe [J].

Chiaramonte, Laura ;

Dreassi, Alberto ;

Girardone, Claudia ;

Pisera, Stefano .

EUROPEAN JOURNAL OF FINANCE, 2022, 28 (12) :1173-1211

[9] The role of Environmental, Social, and Governance (ESG) in predicting bank financial distress [J].

Citterio, Alberto ;

King, Timothy .

FINANCE RESEARCH LETTERS, 2023, 51

[10] The Impact of Green Lending on Credit Risk in China [J].

Cui, Yujun ;

Geobey, Sean ;

Weber, Olaf ;

Lin, Haiying .

SUSTAINABILITY, 2018, 10 (06)