Cross-continental analysis: Culture, ESG disclosure, and bank performance nexus

Research in International Business and Finance. 2026. Vol. 88. Article 103426.

Федорова Е. А., Ledyaeva S., Meshkova E., Olga Loktionova, Степанов В. А.

This study explores the intersection of culture, ESG disclosures, and financial performance in the banking sector, drawing on cultural relativism and ethical universalism. Analyzing ESG data from 52 European and 52 Asian banks between 2010 and 2020, we assess how the content of ESG disclosures influences financial performance, accounting for cultural differences. Using a robust methodology that combines textual analysis, thematic modeling, and expert review, we develop an ESG-specific dictionary tailored to the banking industry, enabling analysis across 15 topics. Regression analyses, with Tobin's q and ROA as response variables, reveal distinct patterns: social dimension disclosures, particularly human rights, have a greater impact on European banks, reflecting cultural relativism. Conversely, environmental and governance disclosures more significantly affect Asian banks, pointing to the influence of universal ethical values. Our findings also highlight varied and sometimes conflicting impacts of thematic disclosures on financial performance indicators, emphasizing the non-uniform and context-dependent nature of ESG influences. Overall, this study underscores the complex relationship between ESG disclosures and financial performance, with cultural contexts playing a critical role in shaping these dynamics within the banking industry.

Ключевые слова: ESG disclosure, Cultural relativism, ethical universalism