Original title:
Analýza vlivu ESG ratingu v bankovnictví: Studie evropských bank
Translated title:
Exploring the Impact of ESG Ratings in Banking: A Study of European Banks
Authors:
Bošňáková, Gabriela ; Teplý, Petr (advisor) ; Sivá, Soňa (referee) Document type: Bachelor's theses
Year:
2024
Language:
eng Abstract:
[eng][cze] This thesis examines the impact of Environmental, Social, Governance (ESG) factors on the financial performance of European banks, focusing on the Weighted average cost of capital and abnormal (WACC) returns during regulatory changes and the COVID-19 pandemic. Using data from 2014 to 2022, the study employs fixed e ects models and event study methodologies to analyze the relation- ship between ESG scores and financial metrics. The findings reveal a complex nonlinear relationship between ESG scores and WACC, suggesting an optimal ESG threshold that minimizes WACC. The study also finds weak correlations between ESG scores and ROE, indicating limited direct e ects on financial outcomes. The results of periods of regulatory change and the COVID-19 cri- sis show inconsistent patterns in abnormal returns without clear evidence that higher ESG scores provide financial resilience. These insights challenge the assumption that higher ESG scores consistently correlate with better financial performance, highlighting the need for more research in di erent conditions and longer periods of time. Keywords Profitability, ESG, Sustainability, Bank Title Exploring the Impact of ESG Ratings in Bank- ing: A Study of European Banks Author's e-mail gabriela.bosnakova@fsv.cuni.cz Supervisor's e-mail petr.teply@vse.czTato práce zkoumá dopad faktor ESG na finan ní v˝konnost evropsk˝ch bank se zam ením na WACC a abnormální v˝nosy b hem regulatorních zm n a pan- demie COVID-19. Vyuûívá data z let 2014 aû 2022. Studie pouûívá modely s pevn˝mi efekty a metodologii studie událostí k anal˝ze vztahu mezi ESG skóre a finan ními ukazateli. Zjiöt ní odhalují komplexní, nelineární vztah mezi ESG skóre a WACC, nazna ující optimální úrove ESG skóru minimalizující WACC. Studie také nalézá slabé korelace mezi ESG skóre a ROE, coû ukazuje na lim- itované p ímé efekty na finan ní v˝sledky. V˝sledky období regula ních zm n a krize COVID-19 ukazují nekonzistentní v˝sledky v abnormálních v˝nosech, bez jasn˝ch d kaz , ûe vyööí ESG skóre poskytují finan ní odolnost. Tyto poz- natky zpochyb ují p edpoklad, ûe vyööí ESG skóre konzistentn korelují s lep- öím finan ním v˝konem, coû zd raz uje pot ebu dalöího v˝zkumu za r zn˝ch okolností a v delöích asov˝ch obdobích. Klí ová slova Profitabilita, ESG, Udrûitelnost, Bankovnictví Název práce Exploring the Impact of ESG Ratings in Banking: A Study of European Banks E-mail autora gabriela.bosnakova@fsv.cuni.cz E-mail vedoucího práce petr.teply@vse.cz
Keywords:
Bank performance; ESG; Sustainability; Sustainable finance
Institution: Charles University Faculties (theses)
(web)
Document availability information: Available in the Charles University Digital Repository. Original record: http://hdl.handle.net/20.500.11956/190726