Sustainability committee, external assurance, and ESG performance: empirical evidence from banking industry in emerging economies
Sustainability committee, external assurance, and ESG performance: empirical evidence from banking industry in emerging economies
Driven by the escalating interests on environmental, social, and governance (ESG) issues, we investigate the impact of internal and external governance mechanisms, specifically board sustainability committee (SC) and external assurance (EA), on banks' ESG performance. This study utilized panel dataset of 643 bank-year observations from 34 Islamic banks (IBs) and 77 conventional banks (CBs) across 12 emerging countries between 2013 and 2023. Sensitivity analyses and GMM regression are also conducted for robustness checks against the baseline model. This study reveals that firms with SC on their boards exhibit significantly higher ESG performance. Furthermore, the results show a positive relationship between EA and enhanced ESG performance. Interestingly, the effects of SC and EA on ESG performance is more pronounced in IBs than in CBs.
conventional banks, developing countries, ESG performance, external assurance, Islamic banks, sustainability committee
2728-2745
Tumewang, Yunice Karina
b0268d85-83f6-401b-8262-fd066abf5c2e
Almarayeh, Taha
57c4af6e-6194-4bc3-8fc3-b660f21d76d8
Alharasis, Esraa
a6629e54-c6bd-4acc-a406-7208a96f0567
5 March 2025
Tumewang, Yunice Karina
b0268d85-83f6-401b-8262-fd066abf5c2e
Almarayeh, Taha
57c4af6e-6194-4bc3-8fc3-b660f21d76d8
Alharasis, Esraa
a6629e54-c6bd-4acc-a406-7208a96f0567
Tumewang, Yunice Karina, Almarayeh, Taha and Alharasis, Esraa
(2025)
Sustainability committee, external assurance, and ESG performance: empirical evidence from banking industry in emerging economies.
Corporate Social Responsibility and Environmental Management, 32 (2), .
(doi:10.1002/csr.3095).
Abstract
Driven by the escalating interests on environmental, social, and governance (ESG) issues, we investigate the impact of internal and external governance mechanisms, specifically board sustainability committee (SC) and external assurance (EA), on banks' ESG performance. This study utilized panel dataset of 643 bank-year observations from 34 Islamic banks (IBs) and 77 conventional banks (CBs) across 12 emerging countries between 2013 and 2023. Sensitivity analyses and GMM regression are also conducted for robustness checks against the baseline model. This study reveals that firms with SC on their boards exhibit significantly higher ESG performance. Furthermore, the results show a positive relationship between EA and enhanced ESG performance. Interestingly, the effects of SC and EA on ESG performance is more pronounced in IBs than in CBs.
Text
Corp Soc Responsibility Env - 2025 - Tumewang - Sustainability Committee External Assurance and ESG Performance
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Accepted/In Press date: 19 December 2024
e-pub ahead of print date: 5 January 2025
Published date: 5 March 2025
Keywords:
conventional banks, developing countries, ESG performance, external assurance, Islamic banks, sustainability committee
Identifiers
Local EPrints ID: 499950
URI: http://eprints.soton.ac.uk/id/eprint/499950
ISSN: 1535-3958
PURE UUID: dff6a07f-da1d-4f99-a8be-c4aa4bd51228
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Date deposited: 09 Apr 2025 18:07
Last modified: 21 Aug 2025 04:04
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Contributors
Author:
Yunice Karina Tumewang
Author:
Taha Almarayeh
Author:
Esraa Alharasis
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