Citation
Ma, Anmiao and Shamsudin, Mad Nasir and Habibullah, Muzafar Shah
(2026)
Effects of environmental, social, and governance adoption on Chinese listed commercial banks performance with the roles of green innovation and ownership structure.
International Review of Financial Analysis, 110.
art. no. 104810.
pp. 1-12.
ISSN 1057-5219
Abstract
This study addresses the problem of how ESG adoption influences bank performance in China's financial market, where institutional heterogeneity and green transition pressures coexist. Using panel data from 42 A-share listed banks (2009–2023), we examine the implementation of multidimensional ESG practices and the mediating role of green innovation, with ownership structure as a key moderator. Results show that governance and social dimensions contribute most strongly to performance, with green innovation serving as a significant mediator. State-owned banks exhibit superior outcomes due to policy alignment, while non-state banks face structural constraints. The study concludes that tailored governance incentives and green finance innovation are essential to enhance sustainable banking resilience.
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