| dc.description.abstract | This study explores the decision-making of US financial industry managers on ESG and the market reactions to ESG performance. The study used the KLD database to collect ESG scores. The sample period of the US financial industry is selected from 2013 to 2018. First, we discuss the impact of the environment, society, and corporate governance on the accounting (ROA, ROE) and market (Tobin′s Q) financial performance of the US financial industry. The ESG activities implemented by the financial industry can provide non-financial information for companies and help reduce information asymmetry between companies and stakeholders. This increased transparency may increase the value of the financial industry. Empirical results show that the increase in ESG scores is positively related to financial performance. Furthermore, due to the global warming issues, COVID-19 and continuous outbreak of corporate scandals in recent years, for enterprises, a good corporate governance
can effectively improve the company′s profits, but in the current situation, environmental and social responsibilities cannot be ignored. Therefore, we want to explore whether financial managers and investors will make the same choices about ESG. The empirical results of this study show that the financial industrial put more effort into the governance orientation (G). Compared with managers, the market reaction to the social orientation (S) is more significant. | en_US |