Kirjan tai muun kokoomateoksen osa (B2)

The Effect of Board Diversity and ESG Engagement on Banks’ Profitability and Risk

Julkaisun tekijätAureli Selena, Brighi Paola, Malik Muddassar, Schadewitz Hannu

ToimittajaCarbó-Valverde, S., Cuadros-Solas, P.J.

PaikkaSpringer Nature Switzerland AG


Kirjan nimi *Challenges for the Banking Industry

Sarjan nimiPalgrave Macmillan Studies in Banking and Financial Institutions

Numero sarjassa2


Lopetussivun numero78

Sivujen määrä12







Companies, including banks, shall adapt to socio-economic risks and new trends like climate change. The mechanism to grasp stakeholders’ different social and environmental demands and include them in company’s strategies, is to have a diverse board (i.e., board members with different gender, age, and nationality). However, this diversity might create frictions and worsen decision making. Therefore, this research investigates the impact of board diversity (BD) on bank performance (measured in terms of profitability and risk) assuming that BD shapes environmental, social, and governance (ESG) engagement, which is also linked to performance. The analysis focuses on public commercial OECD banks from 2008 to 2019. Results on BD´s impact on bank performance are useful for policy makers, supervisory authorities, banks and managers in achieving more sustainable and stable banking.

Last updated on 2023-10-08 at 12:25