THE EFFECT OF ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCE (ESG) VALUES ON BANK PERFORMANCE: THE CASE OF US BANKS

Year 2023, , 424 - 434, 23.10.2023

Emin Hüseyin Çetenak , Aytekin Aytaç , İbrahim Yağlı

https://doi.org/10.35379/cusosbil.1136191

Cited By: 1

Abstract

In recent years, companies have been in search of new reporting and business models to cope with the difficulties of uncertain business and market conditions more easily and to meet the various demands of their stakeholders. ESG scores, which is a criterion used to evaluate corporate sustainability based on the environmental, social and governance activities of companies, has emerged as a response to this need and has become more and more decisive in the financial decisions of all stakeholders. Banks, one of the most important actors in economic development and financial stability of the global economy, have not been left out of these developments due to their importance and responsibility, and have focused on environmental protection, social participation and corporate governance with the effect of past banking scandals. This study examines the effect of ESG scores on the financial performance of commercial banks operating in the USA. Analyzes was made using the data of 183 commercial banks (SIC code 6021) operating in the USA between 2016 and 2020. The analysis reveals that there is an inverted U-shaped relationship between the ESG scores and the return on assets and market performance of the banks; in other words, the effect of ESG on performance is first positive and then negative after a certain ESG level.

Keywords

Environmental, Social and Corporate Governance (ESG), Banking Sector, Bank Performance

ÇEVRESEL, SOSYAL VE KURUMSAL YÖNETİŞİM (ESG) DEĞERLERİNİN BANKA PERFORMANSI ÜZERİNE ETKİSİ: ABD BANKALARI ÖRNEĞİ

Abstract

Son yıllarda firmalar belirsiz iş ve piyasa koşullarının zorlukları ile daha kolay baş edebilmek ve paydaşlarının çeşitli taleplerini karşılamak amacıyla raporlama ve iş modelleri geliştirme konusunda yeni arayışlar içerisine girmiştir. Firmaların çevresel, sosyal ve yönetişim (Environmental, Social, and Corporate Governance - ESG) ile ilgili faaliyetlerinden hareketle kurumsal sürdürülebilirliği değerlendirmek için kullanılan bir ölçüt olan ESG skorları, bu ihtiyaca cevap olarak ortaya çıkmış ve günden güne tüm paydaşların finansal kararları üzerinde daha belirleyici olmaya başlamıştır. Ekonomik kalkınma ve küresel ekonominin finansal istikrarında en önemli aktörlerden biri olan bankalar sahip oldukları önem ve sorumluluk nedeniyle bu gelişmelerin dışında kalmamış, geçmiş bankacılık skandallarının da etkisiyle çevre koruma, sosyal katılım ve kurumsal yönetim çalışmalarına odaklanmıştır. Çalışmada, ABD’de faaliyet gösteren ticari bankaların ESG skorlarının finansal performans üzerindeki etkisi incelenmiştir. 2016-2020 yılları arasında ABD’de faaliyet gösteren ve SIC kodu 6021 olan 183 ticari bankanın verilerinden yararlanılarak yapılan analizlerde ESG skorları ile bankaların aktif kârlılığı ve piyasa performansı arasında ters U şeklinde doğrusal olmayan ilişki olduğu, belirli bir ESG seviyesine kadar performansın pozitif daha sonra negatif etkilendiği sonucu elde edilmiştir.

Keywords

Çevresel, Sosyal ve Kurumsal Yönetişim (ESG), Bankacılık Sektörü, Banka performansı

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