Abstract
This study explores the relationship between financial firms' environmental, social, and governance (ESG) activities and their financial stability measured by Altman's Z-score. Based on a dataset of listed financial institutions in Korea, our results indicate a positive association between stability and ESG activities. Overall ESG scores and those for the individual environmental, social, and governance pillars potentially enhance financial stability. The environmental pillar plays the most significant role in improving the stability of financial firms. The positive association between ESG activities and financial firms' stability is also seen in nonbanking sectors.
| Original language | English |
|---|---|
| Pages (from-to) | 945-951 |
| Number of pages | 7 |
| Journal | Borsa Istanbul Review |
| Volume | 24 |
| Issue number | 5 |
| DOIs | |
| State | Published - Sep 2024 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 10 Reduced Inequalities
Keywords
- ESG
- Financial institution
- Financial stability
- Korean market
- Z-score
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