The ESG-insurance
Unraveling the interlinkage among policy uncertainty, ESG practices, and bank efficiency
Bibliographic Data
| ID | 6455822 |
|---|---|
| Authors | Ahmed W Alam (0000-0002-9888-0936, corresponding author), Ashupta Farjana (0009-0007-9910-0237), Benito Sanchez (0000-0002-4980-2691), Hasanul Banna (0000-0002-6902-8525) |
| Year | 2025 |
| Volume | 10 |
| Pages | 101544-101544 |
| Publication date | 2025-11-29 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Sustainable Futures (JOURNAL) |
| Journal identifiers | ISSN: 2666-1888 |
| Publisher | Elsevier BV (PUBLISHER) |
| DOI | 10.1016/j.sftr.2025.101544 |
| OpenAlex | W7107948858 |
| Language | EN |
| References cited | 124 |
We document a significant decline in the efficiency of US banks in response to rising economic policy uncertainty (EPU) and its components. We further demonstrate that this outcome is independent of bank size but more pronounced for banks experiencing low funding liquidity and inferior asset quality. Banks that adopt better environmental, social, and governance (ESG) policies tend to remain more efficient during policy crises, supporting the stakeholder theory of ESG practices. ESG-insurance is valid for all three dimensions of ESG and is more prominent for the government spending, inflation, and tax components of EPU. Our results remain robust through different estimation techniques, including a two-stage efficiency analysis, instrumental variables-based Tobit regression, and a propensity score matching estimation. Our study underscores the strategic imperative of adopting sustainable banking practices to enhance bank resilience and performance in an increasingly uncertain economic landscape
Asset (computer security · Corporate governance · Government (linguistics · Market liquidity · Outcome (game theory · Propensity score matching · Psychological resilience · Tobit model · Banking stability, regulation, efficiency · FinTech, Crowdfunding, Digital Finance · Sustainable Finance and Green Bonds
Efficiency of financial institutions
Irreversibility, Uncertainty, and Cyclical Investment
The Stakeholder Theory of the Corporation
Estimation and inference in two-stage, semi-parametric models of production processes
The relationship between corporate social responsibility and shareholder value
Testing the efficacy of the economic policy uncertainty index on tourism demand in USMCA
The Relationship Between Corporate Philanthropy And Shareholder Wealth
The World Uncertainty Index
The role of ESG performance during times of financial crisis
Measuring Economic Policy Uncertainty
A Theoretical Framework for Monetary Analysis
| Highly cited | No |
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