Beschreibung:
Using a global sample we reveal that banks benefit from incorporating ESG practices into financial decisions, enjoying lower costs of funds, as well as reduced costs of attracting deposits. All ESG dimensions are responsible for this outcome in the case of total cost of funds, whereas for the cost of deposits the Environmental pillar appears to have an insignificant impact, suggesting that depositors do not value banks' environmental commitments, but rather their social performance and corporate governance quality. The empirical evidence indicates that only large banks and those located in developed countries benefit in terms of reduced financing costs