Does ESG performance reduce banks' nonperforming loans?

卷:55

Article

关键词: CORPORATE SOCIAL-RESPONSIBILITY;    FINANCIAL PERFORMANCE;    DETERMINANTS;   

DOI  :  10.1016/j.frl.2023.103859

来源: SCIE

【 摘 要 】

This study investigates the association between a bank's nonperforming loans and its ESG (environmental, social, and governance) performance. Using data from U.S. commercial banks, we find that a bank's ESG rating is negatively associated with its nonperforming loans. Furthermore, we document that a bank's high performance in all three pillars of ESG evaluation reduces its ratio of nonperforming loans. Our study finds that a bank's favorable ESG performance improves its loan quality and provides archival evidence of the importance of all three pillars of ESG.

【 授权许可】

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