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- W3200548867 endingPage "1211" @default.
- W3200548867 startingPage "1173" @default.
- W3200548867 abstract "This paper investigates the joint and separate effects of Environmental (E), Social (S), and Governance (G) scores on bank stability. Using a sample of European banks operating in 21 countries over 2005–2017, we find that the total ESG score, as well as its sub-pillars, reduces bank fragility during periods of financial distress. This stabilizing effect holds strongly for banks with higher ESG ratings. These results are confirmed by a differences-in-differences (DID) analysis built around the introduction of the EU 2014 Non-Financial Reporting Directive (NFRD). Our evidence also reveals that, in times of financial turmoil, the longer the duration of ESG disclosures, the greater the benefits on stability. Finally, we show that the ESG–bank stability linkages vary significantly across banks’ characteristics and operating environments. Our findings are robust to selection bias and endogeneity concerns. Overall, they support the regulatory effort in requiring an enhanced disclosure of non–financial information." @default.
- W3200548867 created "2021-09-27" @default.
- W3200548867 creator A5021567934 @default.
- W3200548867 creator A5042365838 @default.
- W3200548867 creator A5076771594 @default.
- W3200548867 creator A5088246695 @default.
- W3200548867 date "2021-09-13" @default.
- W3200548867 modified "2023-10-11" @default.
- W3200548867 title "Do ESG strategies enhance bank stability during financial turmoil? Evidence from Europe" @default.
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