<p>This study explores how corporate governance mechanisms affect environmental, social and governance (ESG) performance in Jordanian banks with respect to ESG performance as a proxy for financial sustainability. The study is conducted on 13 banks in Jordan over years ranging from 2016 to 2023 (7-year period sample). The study highlights board configuration and ownership concentration as governance essential dimensions, by using fixed-effects models of panel regressions. Performance-related risk procedures are applied to appropriate account for sustainable long-term results instead of short-term financial achievements. The empirical findings show a positive relationship between board structures, ownership structures, and ESG performance, indicating that high governance quality facilitates the orientation toward sustainability compared to purely bailiwick incentives. The main novelty of this study is being the first empirical explore to associate governance mechanisms, as an important ESG dimension—with firm-level muti year financial sustainability in banks across Jordan. These findings elucidate the importance of integrating ESG into firm governance and provide practical insights for bank managers and regulators working to enhance longstanding stability, resilience, and risk control in the banking industry.</p>

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ESG performance as a mediating factor in ownership, board structures, and sustainable financial performance among Jordanian banks

  • Hanan Ahmad Qudah,
  • Mohammad Zakaria Alqudah

摘要

This study explores how corporate governance mechanisms affect environmental, social and governance (ESG) performance in Jordanian banks with respect to ESG performance as a proxy for financial sustainability. The study is conducted on 13 banks in Jordan over years ranging from 2016 to 2023 (7-year period sample). The study highlights board configuration and ownership concentration as governance essential dimensions, by using fixed-effects models of panel regressions. Performance-related risk procedures are applied to appropriate account for sustainable long-term results instead of short-term financial achievements. The empirical findings show a positive relationship between board structures, ownership structures, and ESG performance, indicating that high governance quality facilitates the orientation toward sustainability compared to purely bailiwick incentives. The main novelty of this study is being the first empirical explore to associate governance mechanisms, as an important ESG dimension—with firm-level muti year financial sustainability in banks across Jordan. These findings elucidate the importance of integrating ESG into firm governance and provide practical insights for bank managers and regulators working to enhance longstanding stability, resilience, and risk control in the banking industry.