The Impacts of Banks Financial Performance on Environmental Social Governance Disclosures: The Case of Asean Banks

Abstract

This document's goal is to investigate the bank's kinerja keuangan dampak in the ESG. This study compares 47 banks in ASEAN between 2018 and 2022. There are eight banks in ASEAN that have implemented ESG, including those in Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. The independent variables are the liquidity, capital ratio, and quality asset. The variable depends on the ESG score. We are using Total Assets and ROA as control variables. In this study, we used a panel regression model to analyze the impact of bank lending practices on ESG in ASEAN bank-to-bank lending. There are two types of control variables used in this study: ROA and Total Aset. Aset quality does not negatively impact ESG; on the other hand, modalities have a negative impact on ESG and a positive impact on ESG. The use of ROA as a control variable indicates that aset quality has no effect on ESG, modal ratio has a negative effect on ESG, likuiditas has a positive effect on ESG, and ROA has no effect on ESG. Conversely, Total Assets is the control variable. Asset quality does not have an ESG dampening effect, modalitas has a negative ESG effect, likuiditas has a positive ESG effect, and the overall aset does not have an ESG dampening effect. This study uses the ESG score to focus only on ASEAN banks who implement ESG.