Does corporate governance influence ESG indicators? Evidence from the U.S. banking sector

Abstract

This study aims to verify if the environmental, social and governance (ESG) indicators are influenced by the governance structure of the banks. Previous studies have provided conflicting results on this association. The sample analyzed includes all banks listed in the U.S. in the period 2018–2022. The methodology used concerns multiple regression on panel data with fixed effects also considering some control variables to make the model more robust. The first results of the statistical analysis show that some governance variables have a significant influence on ESG factors. The results of this research can help banks and regulators to define the guidelines for improving the bank’s performance in environmental, social and governance terms.