Author(s)

Dianzhuo Tang, Jiaze Liu

Corresponding Author

Dianzhuo Tang

Abstract

In recent years, with the increasing prominence of environmental and social issues, investors have been paying more attention to the ESG performance of enterprises, highlighting the importance of ESG factors in the financial field. This study is based on the theories of banking business models, stakeholder theory, risk management theory, and ESG investment theory. It uses the financial data and ESG scores of Chinese listed banks to deeply analyse the ESG factors and explore their impact on the liquidity risk of commercial banks. The research found that (1) good ESG performance can reduce commercial banks' liquidity risk by improving bank value and financial performance. (2) ESG factors can also enhance the liquidity management level of commercial banks through standardization and sustainable business principles, thereby reducing the occurrence and impact of liquidity risk.

Keywords

ESG Performance, Liquidity Risk, Bank Value, Financial Performance