Women on boards and corporate social irresponsibility: evidence from a Granger style reverse causality minimisation procedure

Godfrey, Christopher; Hoepner, Andreas G. F.; Lin, Ming-Tsung; Poon, Ser‐Huang

doi:10.1080/1351847x.2020.1841664

Cited by 24 publications

(11 citation statements)

References 126 publications

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“…Regression specification (1) may not address the reverse causality from bank's credit risk performance onto the green loan rate. Following (Godfrey et al, 2020), we employ a Granger‐style reverse causality minimization technique.…”

Section: Methodsmentioning

confidence: 99%

“…Using a sample of 41 Chinese banks from 2007 to 2018, we examine how Chinese banks' green lending actually affects credit risk, as measured by the rate of impaired loans, in the wake of the introduction of the Green Credit Policy in 2007. We use a Granger‐style reverse causality minimization procedure following (Godfrey et al, 2020), with robust standard errors clustered at the bank level. We find that, in general, the lagged 1‐year effect of the green loan rate on credit risk is insignificant during the sample period for all sample banks.…”

Section: Introductionmentioning

confidence: 99%

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Bank green lending and credit risk: an empirical analysis of China's Green Credit Policy

et al. 2022

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This study empirically investigates the relationship between banks' green lending and their credit risk, and how Chinese green finance regulations contribute to the solvency of individual banks and the resilience of the financial system. Analysing a sample of 41 Chinese banks from 2007 to 2018, we find that the association between a bank's (relative) green lending as a proportion of its overall loan portfolio, and its credit risk, depends critically on the size and structure of state ownership. While the implementation of China's Green Credit Policy reduces credit risk for the major state‐controlled banks, it increases credit risk for the city and regional commercial banks. This performance difference appears largely due to information and expertise asymmetries, with the city and regional commercial banks having less access to information and expertise necessary to evaluate the credit risk of green lending. Understanding this phenomenon can help policymakers tailor green finance policies according to banks' characteristics. It also suggests that mechanisms and platforms for the city/regional commercial banks to learn from the major state‐controlled banks could be beneficial.

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Section: Methodsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Bank green lending and credit risk: an empirical analysis of China's Green Credit Policy

et al. 2022

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“…Many studies analyse the implications of sustainable practices primarily within non-financial corporations (Santis, Albuquerque, and Lizarelli 2016;Godfrey et al 2020). Yet, several works have emphasized that the role played by banks in allocating capital and fostering economic growth should encourage more research (Beck, Demirgüç-Kunt, and Levine 2010;Levine 2005), beyond financial performance.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Do ESG strategies enhance bank stability during financial turmoil? Evidence from Europe

Chiaramonte

Dreassi

Girardone

et al. 2021

The European Journal of Finance

130

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This paper investigates the joint and separate effects of Environmental (E), Social (S), and Governance (G) scores on bank stability. Using a sample of European banks operating in 21 countries over 2005-2017, we find that the total ESG score, as well as its sub-pillars, reduces bank fragility during periods of financial distress. This stabilizing effect holds strongly for banks with higher ESG ratings. These results are confirmed by a differences-in-differences (DID) analysis built around the introduction of the EU 2014 Non-Financial Reporting Directive (NFRD). Our evidence also reveals that, in times of financial turmoil, the longer the duration of ESG disclosures, the greater the benefits on stability. Finally, we show that the ESG-bank stability linkages vary significantly across banks' characteristics and operating environments. Our findings are robust to selection bias and endogeneity concerns. Overall, they support the regulatory effort in requiring an enhanced disclosure of non-financial information.

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“…Nevertheless, CSI has received little attention from researchers and has scantly been examined in the literature. The impact of board gender diversity on CSR and CSI remains unresolved in the extant literature [2,21].…”

Section: Introductionmentioning

confidence: 99%

Impact of Board Gender Diversity on Corporate Social Responsibility and Irresponsibility: Empirical Evidence from France

Boukattaya

Omri

2021

Sustainability

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While prior studies have investigated the impact of corporate governance mechanisms on corporate social responsibility (CSR) commitment, researchers have scantly studied the potentially important relationship between board gender diversity and corporate social responsibility and irresponsibilityseparately. Drawing on the social role theory and feminist ethics, we hypothesizethat board gender diversity is positively associated with CSR and negatively associated with corporate social irresponsibility (CSI).Here, we relied on a sample of French non-financial companies listed on the SBF 120 index between 2011 and 2016. Our results provide evidence on the positive impact of board gender diversity on CSR and the negative one on CSI. We show that women have a stronger impact on reducing CSI than on enhancing CSR. Our findings were robust to the different estimation methods.

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Women on boards and corporate social irresponsibility: evidence from a Granger style reverse causality minimisation procedure

Cited by 24 publications

References 126 publications

Bank green lending and credit risk: an empirical analysis of China's Green Credit Policy

Bank green lending and credit risk: an empirical analysis of China's Green Credit Policy

Do ESG strategies enhance bank stability during financial turmoil? Evidence from Europe

Impact of Board Gender Diversity on Corporate Social Responsibility and Irresponsibility: Empirical Evidence from France

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