Do ESG practices affect the financial performance of banks? A meta-analysis perspective
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Received February 28, 2025;Accepted September 17, 2025;Published October 1, 2025
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Author(s)Link to ORCID Index: https://orcid.org/0000-0003-3963-5997
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Link to ORCID Index: https://orcid.org/0000-0001-8299-9652,
Link to ORCID Index: https://orcid.org/0009-0001-0944-5546,
Link to ORCID Index: https://orcid.org/0000-0003-3505-5741,
Link to ORCID Index: https://orcid.org/0000-0003-3819-8799 -
DOIhttp://dx.doi.org/10.21511/bbs.20(3).2025.09
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Article InfoVolume 20 2025, Issue #3, pp. 117-128
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Type of the article: Research Article
Abstract
This study aims to investigate the pooled effects of environmental, social, and governance (ESG) practices on banks’ financial performance (FP) using a random effects model of meta-analysis. In line with the PRISMA guidelines, 52 studies were identified as eligible out of 387 studies for this analysis. After applying the inclusion criteria, i.e., studies that have quantitatively reported the required measures like the correlation coefficient between ESG and FP, 16 studies were considered for meta-analysis with a combined total sample of 4,084 participants. The combined effect size was r = 0.10 (SE = 0.10, 95% CI: –0.11 to 0.31), reflecting a weak and statistically insignificant correlation, displaying no impact of ESG practices on the financial performance of banks from 2018 to 2025. Furthermore, the predicted interval was –1.38 to 1.59, which means that future research would provide very heterogeneous effect sizes. A heterogeneity analysis shows that there is wide variation among the studies (Q = 1213.82, p < 0.001, I² = 98.76%), indicating that differences in study characteristics may lead to differences in effect sizes. The trim and fill method provides no evidence for the existence of missing studies; however, publication bias is considered a possibility. The findings should be interpreted cautiously, given their high heterogeneity and the suspected source of bias. Despite their small effect size, inconsistencies across studies highlight the need for future research to investigate possible moderating factors. Practical implications emphasize that even if the generalizability of the findings is established, it cannot be without considering study-specific variables.
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JEL Classification (Paper profile tab)G21, G30, M14, L25
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References35
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Tables4
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Figures3
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- Figure 1. Forest plot
- Figure 2. Funnel plot
- Figure 3. Standardized residual histogram
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- Table 1. Studies included for analysis
- Table 2. Meta-analysis model
- Table 3. Publication bias analysis (funnel plot)
- Table 4. Bin table (residual histogram)
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Conceptualization
Amiya Kumar Mohapatra, Subhasish Das, Aditya Prasad Sahoo
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Formal Analysis
Amiya Kumar Mohapatra, Subhasish Das, Yayati Nayak, Aditya Prasad Sahoo, Rahul Matta
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Investigation
Amiya Kumar Mohapatra, Subhasish Das, Aditya Prasad Sahoo, Rahul Matta
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Methodology
Amiya Kumar Mohapatra, Subhasish Das
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Project administration
Amiya Kumar Mohapatra, Yayati Nayak, Aditya Prasad Sahoo, Rahul Matta
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Software
Amiya Kumar Mohapatra, Subhasish Das, Rahul Matta
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Supervision
Amiya Kumar Mohapatra, Aditya Prasad Sahoo, Rahul Matta
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Validation
Amiya Kumar Mohapatra, Subhasish Das, Yayati Nayak, Aditya Prasad Sahoo
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Writing – original draft
Amiya Kumar Mohapatra, Subhasish Das, Aditya Prasad Sahoo
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Writing – review & editing
Amiya Kumar Mohapatra, Subhasish Das, Yayati Nayak, Rahul Matta
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Data curation
Subhasish Das, Yayati Nayak, Aditya Prasad Sahoo, Rahul Matta
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Resources
Yayati Nayak, Rahul Matta
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Visualization
Yayati Nayak, Aditya Prasad Sahoo, Rahul Matta
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Conceptualization
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ESG disclosure and financial performance: Empirical study of Vietnamese commercial banks
Banks and Bank Systems Volume 19, 2024 Issue #1 pp. 208-220 Views: 4740 Downloads: 1375 TO CITE АНОТАЦІЯEnvironmental, social, and governance (ESG) disclosure becomes vital for banks to be transparent and accountable for their investments and lending decisions to shareholders, regulators, and society. The potential enhancement of shareholder value through ESG disclosure is still inconsistent. Empirical studies on the association between ESG disclosure and financial performance are mixed and limited in emerging economies. This study aims to examine whether ESG disclosure impacts the financial performance of 24 Vietnamese commercial banks in terms of return on assets (ROA), return on equity (ROE), and net interest margin (NIM). The study uses the feasible generalized least squares estimation method based on panel data from 2018 to 2022. The study employs content analysis on 12 themes related to environmental, social, and governance pillars to score policy disclosure based on the Fair Finance Guide Methodology. The results highlight the positive effects of ESG policy disclosure, individual environment disclosure (E), and individual governance disclosure (G) on bank financial performance. Notably, ESG, E, and G have the largest influence on ROE, with coefficients of 0.051, 0.036, and 0.027, respectively, at a 5% significance level. However, the study does not provide evidence of a statistically significant association between social disclosure and financial performance. These results provide empirical evidence for regulators and bank managers to shape ESG policies and practices aligning with international standards.
Acknowledgment
ESG disclosure score of 11 banks as primary data in this study is conducted under the project coordinated by the Fair Finance Vietnam coalition, as part of Fair Finance International. -
Financial sustainability management of the insurance company: case of Ukraine
Ruslana Pikus, Nataliia Prykaziuk
, Mariia Balytska
doi: http://dx.doi.org/10.21511/imfi.15(4).2018.18
Investment Management and Financial Innovations Volume 15, 2018 Issue #4 pp. 219-228 Views: 4499 Downloads: 616 TO CITE АНОТАЦІЯIn the current conditions of the Ukrainian economy, which is characterized by crisis phenomena and frequent changes in legislation, the insurance organizations are facing a number of difficulties in maintaining their financial sustainability. Moreover, these processes take place under the increased requirements for solvency of insurers. However, a significant part of domestic insurance companies is financially unstable, which is conditioned not only by the lack of funds, but also by the low level of management. This situation hinders the further development of the insurance market in Ukraine and has a negative impact on all areas of the domestic financial system and prevents it from successful integration into the European financial field. In order to address this problem, it is necessary to distinguish the key groups of risks that affect the financial sustainability of insurance organizations, among which there are the following: insurance, strategic, market risk, risk of inefficient capital structure, risk of limiting the insurance company’s liquidity, tax risk, investment risk, operational risk, the risk of ineffective organizational structure of the enterprise, and information risk. It should be noted that under conditions of changing environment, the impact of these risks only increases, and therefore the task of minimizing the impact of these risks on the activities of insurance companies is highly important. Accordingly, the authors of the article proposed a four-stage strategy to manage the financial sustainability of the insurance company, the purpose of which is to identify the risks of limiting the insurer’s financial sustainability, their qualitative and quantitative assessment, as well as the development and implementation of appropriate measures to minimize and eliminate unacceptable consequences.
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Green product buying intentions among young consumers: extending the application of theory of planned behavior
Andhy Setyawan, Noermijati Noermijati
, Sunaryo Sunaryo , Siti Aisjah
doi: http://dx.doi.org/10.21511/ppm.16(2).2018.13
Problems and Perspectives in Management Volume 16, 2018 Issue #2 pp. 145-154 Views: 4306 Downloads: 1501 TO CITE АНОТАЦІЯThis research reveals the factors explaining the purchase intention toward green products among young consumers. Young consumers are beginner consumers who are going to play an important role to take a responsibility in preserving the environment. Theory of Planned Behavior (TPB) is selected as the main theoretical framework in this research alongside some other variables (environmental concern, environmental knowledge, and willingness to pay), which are added in the research model to expand TPB application. Three hundred and twenty-six respondents were interviewed through a survey and the data are analyzed using Structural Equation Modeling (SEM).
The findings illustrated that not every explanatory variable influenced the purchase intention toward green products among young consumers. Environmental concern and attitude did not influence the purchase intention toward green products among young consumers.