Understanding Ghanaian Banks' Views On The Influence Of ESG Reporting On Their Financial Performance.

The present study aims to examine the influence of Environmental, Social, and Governance (ESG) performance on the financial performance of banks operating in Ghana. Drawing from the theoretical frameworks of stakeholder and resource-based view theories, this research study adopts a quantitative methodology to examine data collected from a sample of eight banks in Ghana and includes a total of 180 respondents. This study employs the partial least squares structural equation modelling (PLS-SEM) technique to assess the correlation between environmental, social, and governance (ESG) performance and financial performance. Based on the analysis, the findings suggest that while Social and Governance performances significantly influence the financial performance of banks, Environmental performance does not present a significant relationship. This highlights the crucial role of social responsibility and robust governance in promoting financial success within Ghana's banking sector, while the non-significant impact of environmental performance warrants further investigation. These insights offer valuable direction for policy-making and strategic decisions in the banking sector, underscoring the importance of effective ESG practices for financial performance.