Does ESG performance impact value and risk taking by commercial

Jul 20, 2026

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Research article analyzing whether ESG performance influences firm value and risk-taking behavior in commercial settings. The study spans manuscript metadata including submission, revision, and acceptance dates, and provides a DOI for citation. It focuses on the relationship between environmental, social, and governance metrics and subsequent outcomes related to value creation and risk propensity, supporting evidence-based conclusions drawn from the reported analysis framework.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages28

Reading Time1 h 11 min

AccessFree to download

Study Information

Publication Metadata

Research Focus

ESG Performance and Outcomes

Received: 28 September 2023 Revised: 13 May 2024 Accepted: 28 June 2024 DOI: 10.1002/bse.3882 RES EARCH A RTICLE Does ESG performance impact value and risk-taking by commercial banks? Evidence from emerging market economies Mayank Gangwani | Smita Kashiramka Department of Management Studies, Indian Institute of Technology Delhi, Vishwakarma Bhavan, Shaheed Jeet Singh Marg, Hauz Khas, New Delhi, India Correspondence Mayank Gangwani, Research Scholar at Department of Management Studies, Indian Institute of Technology Delhi, Vishwakarma Bhavan, Shaheed Jeet Singh Marg, Hauz Khas, New Delhi, 110016, India. [Email: mayankgangwani523@gmail.com](Email: mayankgangwani523@gmail.com) 1 | INTRODUCTION Abstract The study examines the impact of environmental, social, and governance (ESG) performance on the value and risk-taking behavior of listed commercial banks in emerging market economies (EMEs) . The study analyzes a comprehensive sample of 178 commercial banks listed in the top 20 emerging markets from 2015 to 2021 . The study employs the System generalized method of moments (GMM) with ArellanoBond estimation to address the endogeneity issue. The results indicate that banks with higher ESG disclosure scores are linked to reduced risks for commercial banks such as insolvency, leverage, and liquidity risks, in line with shareholder theory. Furthermore, the results demonstrate that sample banks with higher ESG disclosure scores show better accounting (ROE and ROA) and market (Tobin's Q) performance, supporting both agency theory and resource-based theory. The robustness tests validate the consistency of the results. KEYWOR DS bank risk-taking, bank value, COVID-19 pandemic, emerging market economies (EMEs), ESG disclosure, sustainability reporting as emerging markets, are projected to account for 88% of the global population as per a report by (Boston Consulting Group (BCG, 2023) . Growing awareness of the detrimental effects of pollution, ozone layer depletion, and soil erosion on humanity and the ecosystem has been observed in recent years among investors, entrepreneurs, and the general public. In emerging countries, air pollution is a significant problem that endangers both the environment and public health. According to the World Health Organization (WHO) urban air quality database, almost all cities (98%) in emerging markets with a population exceeding 100,000 do not meet the WHO's air quality guidelines (Taylor, 2019; WHO, 2016) . Currently, emerging markets emit approximately 35 billion tons of CO2 equivalent annually, representing approximately 85% of the global total. This proportion is expected to increase further. By the year 2050, these nations, currently classified Emerging markets, though contributing less per capita to greenhouse gas emissions than developed countries, are integral in addressing climate change. Due to the devastating effects of global warming on their populations, economies, and natural enviro

FAQs

What does the document investigate regarding ESG performance?

It investigates how ESG performance relates to firm value and risk-taking behavior in commercial contexts.

What publication details are provided in the document?

The document includes received, revised, and accepted dates as well as a DOI for scholarly referencing.

How is the document’s scope defined?

The scope is centered on the impact of ESG performance on value and risk-taking outcomes, supported by an empirical research approach.

Jul 20, 2026

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