Assessing the Interconnection of Environmental, Social, and Governance (ESG) Scores with the Financial Performance of Banks in Pakistan: Examining the Potential Mediating Influence of Innovation

Authors

  • Tanveer Taj Assistant professor Department of Business Studies, Bahria University
  • Ammara Mujtaba Assistant Professor, Department of Business Studies, Bahria University
  • Khalid Hussain Senior Assistant Professor, Department of Business Studies, Bahria University

Abstract

The study investigates the impact of ESG on the corporate financial performance of banks and the impact of ESG on innovation in banks. It also examines the mediation impact of innovation in the relationship between ESG and corporate financial performance of banks. The research focuses on a sample of 15 commercial banks in Pakistan over a period of 7 years. The hypotheses proposed in the study are that ESG has a positive impact on financial performance and innovation. Overall, the results suggest that ESG scores have a positive impact on financial performance and innovation in the banking sector in Pakistan, with innovation playing a mediating role in enhancing financial performance. It provides practical implications for regulators, policy makers, shareholders, and other government bodies, emphasizing the significant relationship of ESG in the relationship between innovation and financial performance.

Keywords- Environmental, Social, Governance (ESG) Scores, Financial Performance of Banks, Innovation

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Published

2023-12-22

Issue

Vol. 2 No. 2 (2023): Journal of Business and Management Research

Section

Articles

How to Cite

Assessing the Interconnection of Environmental, Social, and Governance (ESG) Scores with the Financial Performance of Banks in Pakistan: Examining the Potential Mediating Influence of Innovation. (2023). Journal of Business and Management Research, 2(2), 1042-1052. https://jbmr.com.pk/index.php/Journal/article/view/92