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Is ESG beneficial to banking potential gains? Evidence from Chinese banks

Author

Listed:
  • Zhu, Ning
  • Ma, Biyin
  • Liu, Huan
  • Wang, Bing
  • Yu, Zhiqian

Abstract

This paper incorporates ESG into the operational processes of commercial banks, and measures the impact of ESG on banking potential gains. The results confirm that ESG has a nonlinear positive impact on banking potential gains. Considering different types of banks, the impact of ESG on potential gains of small and medium-sized banks is more sensitive than that of large state-owned banks. In terms of sub-dimensions, the governance has the strongest effect.

Suggested Citation

  • Zhu, Ning & Ma, Biyin & Liu, Huan & Wang, Bing & Yu, Zhiqian, 2025. "Is ESG beneficial to banking potential gains? Evidence from Chinese banks," Finance Research Letters, Elsevier, vol. 85(PE).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pe:s1544612325015442
    DOI: 10.1016/j.frl.2025.108290
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    Keywords

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    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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