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Study On The Function Mechanism Of ESG On The Value Of Commercial Banks

Posted on:2024-08-30Degree:MasterType:Thesis
Country:ChinaCandidate:J N WangFull Text:PDF
GTID:2531307100464644Subject:Finance
Abstract/Summary:PDF Full Text Request
In recent years,our economy has developed rapidly and the material life has been greatly enriched,but at the same time,the people are also facing major problems such as energy resources shortage,fragile ecological environment and prominent social problems.In 1992,UNEP FI proposed that financial institutions should incorporate environmental,social and corporate governance(ESG)factors into their decision-making processes.Since then,ESG has gradually become the most important indicator for the international community to measure the sustainable development ability of economic entities.Commercial banks occupy a dominant position in Chinese financial system.Due to the important role of financial intermediary,the poor management of commercial banks may cause systemic risks.Therefore,commercial banks should give consideration to environmental,social and corporate governance responsibilities as well as efficient development.Commercial banks practice the concept of ESG,pay attention to the relationship between ESG and the value of commercial banks,and conform to the trend of development of The Times,which can not only stimulate the internal power of sustainable development of banks,but also contribute to the smooth realization of the "double carbon" goal,so as to make the financial system run stably.This paper takes A-share listed commercial banks as the research object,and based on sustainable development theory,stakeholder theory and principal-agent theory,conducts theoretical research on the relevance and mechanism of ESG and commercial bank value.Furthermore,the data of 36 A-share listed banks from 2016 to 2021 is selected to build A model for empirical analysis.The empirical results show that there is a significant positive correlation between ESG performance and the value of commercial banks,and ESG exerts an impact on the value of commercial banks by improving the efficiency of bank operation and management and reducing the cost of bank capital and risk.On the basis of empirical research,this paper takes Industrial Bank as an example to further analyze the mechanism of ESG affecting the value of commercial banks.Finally,this paper puts forward relevant countermeasures and suggestions from the perspective of commercial banks and government regulators.This paper makes up for the deficiency of the existing literature on the mechanism of ESG’s influence on the value of commercial banks,and enriches the theoretical framework of ESG research.Making ESG related research more concrete is conducive to commercial banks’ correct understanding of the relationship between ESG and enterprise value,improving the performance of ESG governance,and thus increasing enterprise value.The research is of practical significance to promote the green and sustainable development of the financial system and help the country achieve the double carbon goal.
Keywords/Search Tags:ESG, Commercial banks, Bank value, Operating efficiency, Cost of capital
PDF Full Text Request
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