ESG and banking financial performance

Purpose -This study addresses the longstanding debate concerning the relationship between Environmental, Social, and Governance (ESG) engagement and financial performance within the banking industry by systematically synthesizing the existing empirical evidence. Design/Methodology/Approach -A compre...

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Autores: Prior Jiménez, Diego|||0000-0002-4669-2861, Zarea, Mahmoud Abdeltawab Bakry, Hegazy, Mohamed A.F.
Tipo de recurso: artículo
Fecha de publicación:2026
País:España
Institución:Universitat Autònoma de Barcelona
Repositorio:Dipòsit Digital de Documents de la UAB
Idioma:inglés
OAI Identifier:oai:dnet:uabarcelona_::6a99559641b426b647330f5b15f2c7c1
Acceso en línea:https://ddd.uab.cat/record/328871
https://dx.doi.org/urn:doi:10.1016/j.jeca.2026.e00467
Access Level:acceso abierto
Palabra clave:ESG performance
Banking sector
Financial performance
Multilevel meta-analysis
Paris agreement
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spelling ESG and banking financial performancea multi-level meta-analysis reviewPrior Jiménez, Diego|||0000-0002-4669-2861Zarea, Mahmoud Abdeltawab BakryHegazy, Mohamed A.F.ESG performanceBanking sectorFinancial performanceMultilevel meta-analysisParis agreementPurpose -This study addresses the longstanding debate concerning the relationship between Environmental, Social, and Governance (ESG) engagement and financial performance within the banking industry by systematically synthesizing the existing empirical evidence. Design/Methodology/Approach -A comprehensive literature review identified 28 peer-reviewed studies, yielding 194 distinct effect sizes. Employing a three-level random-effects meta-analytic framework, we estimate the overall ESG-performance association besides ESG subdimensions (E, S, G), and examine key moderating factors, including data sources, financial performance measures, and the macro-regulatory period (pre- versus post-Paris Agreement). Findings -The results indicate a small yet statistically significant positive association between ESG engagement and banking financial performance. The environmental pillar exhibits a consistent positive relationship, whereas the social and governance dimensions do not demonstrate statistically significant independent effects. Return on equity appears more sensitive to ESG variation relative to alternative performance indicators. Additionally, discrepancies across ESG rating providers reveal meaningful measurement heterogeneity. Temporal analysis further suggests that the ESG-performance association strengthened in the post-Paris Agreement regulatory period. The findings remain robust to publication-bias diagnostics. Originality/Value -While corroborating evidence from broader corporate ESG research, this study represents, to our knowledge, the first meta-analysis focused exclusively on the banking sector. Methodologically, it demonstrates the advantages of a three-level meta-analytic framework for addressing statistical dependencies among multiple effect sizes derived from individual primary studies. By decomposing aggregate ESG into its environmental, social, and governance components, evaluating the moderating role of alternative financial metrics (ROA, ROE, and Tobin's Q), assessing divergence across data providers, and incorporating a temporal analysis of the regulatory shift following the 2015 Paris Agreement, this study advances the literature and offers policy-relevant implications for scholars, practitioners, and regulators. 22026-01-0120262026-01-01Articlehttp://purl.org/coar/resource_type/c_6501VoRhttp://purl.org/coar/version/c_970fb48d4fbd8a85info:eu-repo/semantics/articleapplication/pdfhttps://ddd.uab.cat/record/328871https://dx.doi.org/urn:doi:10.1016/j.jeca.2026.e00467reponame:Dipòsit Digital de Documents de la UABinstname:Universitat Autònoma de BarcelonaInglésengopen accesshttp://purl.org/coar/access_right/c_abf2Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial, la distribució, la comunicació pública de l'obra i la creació d'obres derivades, fins i tot amb finalitats comercials, sempre i quan es reconegui l'autoria de l'obra original.https://creativecommons.org/licenses/by/4.0/info:eu-repo/semantics/openAccessoai:dnet:uabarcelona_::6a99559641b426b647330f5b15f2c7c12026-06-06T12:50:31Z
dc.title.none.fl_str_mv ESG and banking financial performance
a multi-level meta-analysis review
title ESG and banking financial performance
spellingShingle ESG and banking financial performance
Prior Jiménez, Diego|||0000-0002-4669-2861
ESG performance
Banking sector
Financial performance
Multilevel meta-analysis
Paris agreement
title_short ESG and banking financial performance
title_full ESG and banking financial performance
title_fullStr ESG and banking financial performance
title_full_unstemmed ESG and banking financial performance
title_sort ESG and banking financial performance
dc.creator.none.fl_str_mv Prior Jiménez, Diego|||0000-0002-4669-2861
Zarea, Mahmoud Abdeltawab Bakry
Hegazy, Mohamed A.F.
author Prior Jiménez, Diego|||0000-0002-4669-2861
author_facet Prior Jiménez, Diego|||0000-0002-4669-2861
Zarea, Mahmoud Abdeltawab Bakry
Hegazy, Mohamed A.F.
author_role author
author2 Zarea, Mahmoud Abdeltawab Bakry
Hegazy, Mohamed A.F.
author2_role author
author
dc.subject.none.fl_str_mv ESG performance
Banking sector
Financial performance
Multilevel meta-analysis
Paris agreement
topic ESG performance
Banking sector
Financial performance
Multilevel meta-analysis
Paris agreement
description Purpose -This study addresses the longstanding debate concerning the relationship between Environmental, Social, and Governance (ESG) engagement and financial performance within the banking industry by systematically synthesizing the existing empirical evidence. Design/Methodology/Approach -A comprehensive literature review identified 28 peer-reviewed studies, yielding 194 distinct effect sizes. Employing a three-level random-effects meta-analytic framework, we estimate the overall ESG-performance association besides ESG subdimensions (E, S, G), and examine key moderating factors, including data sources, financial performance measures, and the macro-regulatory period (pre- versus post-Paris Agreement). Findings -The results indicate a small yet statistically significant positive association between ESG engagement and banking financial performance. The environmental pillar exhibits a consistent positive relationship, whereas the social and governance dimensions do not demonstrate statistically significant independent effects. Return on equity appears more sensitive to ESG variation relative to alternative performance indicators. Additionally, discrepancies across ESG rating providers reveal meaningful measurement heterogeneity. Temporal analysis further suggests that the ESG-performance association strengthened in the post-Paris Agreement regulatory period. The findings remain robust to publication-bias diagnostics. Originality/Value -While corroborating evidence from broader corporate ESG research, this study represents, to our knowledge, the first meta-analysis focused exclusively on the banking sector. Methodologically, it demonstrates the advantages of a three-level meta-analytic framework for addressing statistical dependencies among multiple effect sizes derived from individual primary studies. By decomposing aggregate ESG into its environmental, social, and governance components, evaluating the moderating role of alternative financial metrics (ROA, ROE, and Tobin's Q), assessing divergence across data providers, and incorporating a temporal analysis of the regulatory shift following the 2015 Paris Agreement, this study advances the literature and offers policy-relevant implications for scholars, practitioners, and regulators.
publishDate 2026
dc.date.none.fl_str_mv 2
2026-01-01
2026
2026-01-01
dc.type.none.fl_str_mv Article
http://purl.org/coar/resource_type/c_6501
VoR
http://purl.org/coar/version/c_970fb48d4fbd8a85
dc.type.openaire.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv https://ddd.uab.cat/record/328871
https://dx.doi.org/urn:doi:10.1016/j.jeca.2026.e00467
url https://ddd.uab.cat/record/328871
https://dx.doi.org/urn:doi:10.1016/j.jeca.2026.e00467
dc.language.none.fl_str_mv Inglés
eng
language_invalid_str_mv Inglés
language eng
dc.rights.none.fl_str_mv open access
http://purl.org/coar/access_right/c_abf2
https://creativecommons.org/licenses/by/4.0/
dc.rights.openaire.fl_str_mv info:eu-repo/semantics/openAccess
rights_invalid_str_mv open access
http://purl.org/coar/access_right/c_abf2
https://creativecommons.org/licenses/by/4.0/
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.source.none.fl_str_mv reponame:Dipòsit Digital de Documents de la UAB
instname:Universitat Autònoma de Barcelona
instname_str Universitat Autònoma de Barcelona
reponame_str Dipòsit Digital de Documents de la UAB
collection Dipòsit Digital de Documents de la UAB
repository.name.fl_str_mv
repository.mail.fl_str_mv
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