Abstract
The present study aims to analyze the existence of a possible significant relationship between social disclosure and financial performance in banking institutions. This phenomenon was analyzed by considering the percentage of female executives on boards, and the implementation of the equal opportunity policy when it was applied. We used a sample of 61 banks from European Union countries (between 2015–2017), and sampling was environmental, social, or governance (ESG)-driven in order to capture the effect of non-financial disclosure provided by Bloomberg. A cross-section econometric model was built in order to examine the relationship between the percentage of female directors on boards and the equal opportunity policy. Both the independent variables of banks and performance indicators were adopted as dependent variables. Our study provides empirical evidence that while there is a lack of efficiency and performance when boards are fragmented, the enactments of equal opportunity policies create a good reputation for the firm and the positive performance of staff. The study aims to contribute to the ongoing debate on social sustainability and on the phenomenon of the glass ceiling, and provides political and entrepreneurial implications.
Highlights
Banking institutions play a crucial role in the accomplishment of the United Nations’ Sustainable Development Goals (SDGs) [1]
As discussed in the literature, enhance the corporate social performance (CSP) of the banking institutions, which has a positive impact on their corporate financial performance (CFP) [5]
Most of the analyses focus on corporate non-financial disclosure, since corporate social responsibility (CSR) reporting has a strong relevance for what regards the company’s reputation and its corporate social performance [74,75,76,77]
Summary
Banking institutions play a crucial role in the accomplishment of the United Nations’ Sustainable Development Goals (SDGs) [1] Their activity goes beyond a mere matter of ecological impact tout-court, being a zero-emission industrial sector—as is considered in several empirical analyses on corporate sustainability [2,3]. Their indirect impact on sustainable activities is, instead, noticeable: for example, they can boost clean energy projects, invest in green bonds, offer green credit funds, and finance virtuous social initiatives [4]. Recent studies have focused on how banks implement their strategies to promote sustainability in an enlarged perspective, while assessing internal operations, too [14]
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
