ESG engagement, country-level political risk and bank liquidity creation

Chien Chiang Lee, Meiting Lu, Chih Wei Wang, Chia Yu Cheng

研究成果: 雜誌貢獻期刊論文同行評審

7 引文 斯高帕斯(Scopus)


This study explores the influence of banks' environmental, social, and governance (ESG) performance and country-level risk factors on liquidity creation. Utilizing a distinctive sample of 2103 bank-year observations from 2000 to 2020 in Asia, the study finds that banks' ESG performance exerts a positive impact on bank liquidity creation. Furthermore, this relationship is more prominent in countries with high geopolitical risk and corruption risk and low levels of democratization. To address endogeneity concerns, a two-stage least squares regression is employed using two instrumental variables, and the findings remain robust. These findings have practical implications for banks and policymakers to consider a country's political risk when promoting ESG activities and facilitating liquidity creation.

期刊Pacific Basin Finance Journal
出版狀態已出版 - 2月 2024


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