Preprint Article Version 1 Preserved in Portico This version is not peer-reviewed

Research on the Impact of ESG Factors on Bank Liquidity Risk

Version 1 : Received: 14 April 2024 / Approved: 15 April 2024 / Online: 15 April 2024 (13:54:15 CEST)

A peer-reviewed article of this Preprint also exists.

Liu, J.; Xie, J. The Effect of ESG Performance on Bank Liquidity Risk. Sustainability 2024, 16, 4927. Liu, J.; Xie, J. The Effect of ESG Performance on Bank Liquidity Risk. Sustainability 2024, 16, 4927.

Abstract

In recent years, with the increasing prominence of environmental and social issues, investors have been paying more attention to the ESG performance of enterprises, highlighting the importance of ESG factors in the financial field. This study is based on the theories of banking business models, stakeholder theory, risk management theory, and ESG investment theory. It uses the financial data and ESG scores of Chinese listed banks to deeply analyze the ESG factors and explore their impact on the liquidity risk of commercial banks. The research found that (1) good ESG performance can reduce the liquidity risk commercial banks face by improving bank value and financial performance. (2) ESG factors can also enhance the liquidity management level of commercial banks through standardization and sustainable business principles, thereby reducing the occurrence and impact of liquidity risk. Therefore, it is necessary to reduce the liquidity risk of banks and promote the sustainable development of commercial banks from four aspects: ESG performance and management, bank value, financial performance, and policy regulation.

Keywords

ESG Performance; Liquidity Risk; Bank Value; Financial Performance

Subject

Business, Economics and Management, Finance

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