Research Article
The Effect of COVID-19 Pandemic on Banking Financial Performance through Credit Risk with ESG Performance as Moderating Variable: Study in ASEAN
@INPROCEEDINGS{10.4108/eai.17-12-2022.2333275, author={Novita Rilia Sari and Ratna Wardhani}, title={The Effect of COVID-19 Pandemic on Banking Financial Performance through Credit Risk with ESG Performance as Moderating Variable: Study in ASEAN}, proceedings={Proceedings of the International Conference on Economic, Management, Business and Accounting, ICEMBA 2022, 17 December 2022, Tanjungpinang, Riau Islands, Indonesia}, publisher={EAI}, proceedings_a={ICEMBA}, year={2023}, month={6}, keywords={covid-19 pandemic; credit risk; financial performance; esg performance}, doi={10.4108/eai.17-12-2022.2333275} }- Novita Rilia Sari
Ratna Wardhani
Year: 2023
The Effect of COVID-19 Pandemic on Banking Financial Performance through Credit Risk with ESG Performance as Moderating Variable: Study in ASEAN
ICEMBA
EAI
DOI: 10.4108/eai.17-12-2022.2333275
Abstract
This study aims to analyze the effect of COVID-19 pandemic on banking financial performance through credit risk with ESG performance as moderating variable. This study examines 115 firm-year observations for 23 banking companies in ASEAN countries: Indonesia, Philippines, Malaysia, Singapore, and Thailand during 2017 to 2021. This study uses the Structural Equation Modelling (SEM) methodology. The results showed that (1) COVID-19 pandemic had a significant positive effection credit risk, (2) credit risk had a significant negative effect on the financial performance of banks, (3) COVID-19 pandemic had a significant negative effect on financial performance through credit risk, (4) banks with high ESG performance can reduce or lessen the positive impact of the COVID-19 pandemic on credit risk than banks with low ESG performance, (5) The negative impact of credit risk on the financial performance of banks with high ESG performance will be greater than that of banks with low ESG performance.
