Main Article Content



The effects of environmental, social and governance (ESG) imperatives on the performance of mortgage banks were empirically investigated using 2015 – 2020 data from audited annual reports of three listed Nigerian mortgage banks. Value added, profitability, earnings per share, productivity, and size measured performance. Social cost and stakeholder theories underpinned the research. Purposeful sampling technique was adopted based on data availability on all the studied variables within 2015 - 2020. Multivariate analysis of covariance (MANCOVA) was used in testing the three key hypotheses formulated with the aid of statistical package for social sciences (SPSS). The study established that:(i) environmental imperative did not have significant effect on the performance of sampled banks within the period under study while social and governance imperatives did; (ii) when environmental, social and governance imperatives are held constant; the sampled banks witnessed significant decrease in their value added, profitability, and earnings per share while the effects on productivity and size were divergent among the three banks. All the multivariate tests show that ESG aggregate performance has significant positive effect on the performance of listed mortgage banks in Nigeria within the period under study. The study quantitatively established the relevance of social cost and stakeholder theories in ESG framework; and recommends that further research be carried out on the effects of environmental, social and governance imperatives on the productivity and size of listed mortgage banks in Nigeria since the results are mixed. Practically and policy wise, the study calls on business decision makers to optimize environmental costs for the sustainability of businesses.

Earnings per share, ESG imperatives, bank size, mortgage banks, performance, productivity, profitability, value added

Article Details

How to Cite
WAHUA, L., & EZEILO, F. I. (2021). EFFECTS OF ENVIRONMENTAL, SOCIAL AND GOVERNANCE IMPERATIVES ON THE PERFORMANCE OF SELECTED LISTED MORTGAGE BANKS IN NIGERIA. Journal of Global Economics, Management and Business Research, 13(4), 34-48. Retrieved from https://www.ikprress.org/index.php/JGEMBR/article/view/7123
Original Research Article


Venkataramani S. The ESG imperative: 7 factors for finance leaders to consider; 2021.

Retrieved on September 23, 2021. Available:https://www.gartner.com/smarterwithgartner/the-esg-imperative-7 factors-for-finance-leaders-to-consider

Corporate Finance Institute. ESG (environmental, social and governance): The framework for assessing the impact of the sustainability and ethical practices of a company; 2021. Retrieved 25 September. Available:https://corporatefinanceinstitute.com/resources/knowledge/other/esg-environmental-social-governance/

CFA Institute. What Is ESG investing? 2021. Retrieved September 14, 2021. Available: https://www.cfainstitute.org/en/research/esg-investing

Moore E.B. Addressing housing deficit in Nigeria: Issues, challenges and prospects. Economic and Financial Review (Central Bank of Nigeria). 2019; 57(4):201-222.

Wahua L. The role of institutional structures and corporate governance on banks’ capital adequacy in se selected D-8 countries with the moderating effect of legal system. Being a dissertation presented to Al Madinah International University Malaysia in partial fulfillment of the requirements for the award of Doctor of Philosophy (PhD) in Accounting; 2018.

Wahua L, Ahlijah Y. Business intelligence costs and firm performance: Evidence from top selected ECOWAS’ banks. Journal of Economics and Trade. 2020; 5(1):1-17.

Yakubu G. Appraisal of the performance of Nigerian banks using value added: Evidence from United Bank for Africa Plc. Being a Thesis submitted to Dorben Polytechnic Abuja for the award of HND in Accountancy; 2020.

Ankomah ET. Moderating role of profitability on the impact of CSR on Ghanaian commercial banks’ size and shareholder value. Being a Thesis submitted to Australian Institute of Business Accra for the award of Postgraduate Diploma in Management; 2017.

Bray J, Maxwell S. Multivariate analysis of variance (Quantitative applications in the social sciences; (54). Newbury Park, (Calif.); London: SAGE; 1985.

Heidel E. Statistics: MANCOVA; 2021. Retrieved September 22, 2021. Available: https://www.scalestatistics.com/mancova.html

Babalola YA. The impact of corporate social responsibility on firms’ profitability in Nigeria. European Journal of Economics, Finance and Administrative Sciences. 2012; 45(2012): 39-50.

Ajide F.M, Aderemi AA. The effects of corporate social responsibility activity disclosure on corporate profitability: Empirical evidence from Nigerian commercial banks. Journal of Economics and Finance (IOSR-JEF). 2014; 2(6):17-25.

Wahua L, Tsekpo S, Anyamele J. Governance and employee productivity of selected Nigerian banks: Does gender diversity matter? Asian Journal of Arts, Humanities and Social Studies. 2018; 1(1):19-39.

Yusoff WFW, Alhaji IA. Insight of corporate governance theories. Journal of Business and Management. 2012; 1(1):52-63.

Tarmuji I, Maelah R, Tarmuji NH. The impact of environmental, social and governance practices (ESG) on economic performance: Evidence from ESG score. International Journal of Trade, Economics and Finance. 2016; 7(3):67-74. DOI: 10.18178/ijtef.2016.7.3.501

Turunen T. ESG and firm performance: Variations between industry sectors in the Eurozone. Being a Thesis submitted to University of Vaasa for the award of MSc in Finance; 2021.

Deng X, Cheng X. Can ESG indices improve the enterprises’ stock market performance?—an empirical study from China. Sustainability. 2019; 11(4765):1-13.

Henisz W, Koller T, Nuttall R. Five ways that ESG creates value. McKinsey Quarterly; 2019.

Maftuchah I, Ismalina P, Junarsin E. Evaluating ESG Profile on Firm Performance: Evidence from the Indonesian Insurance Industry. Otoritas Jasa Keuangan (OJK) Indonesia, WP/18/07; 2018.

El Ghoul S, Guedhami O., Kwok C, Mishra D. Does corporate social responsibility affect the cost of capital? Journal of Banking and Finance. 2011; 35 (9):2388-2406.

Gregory A, Tharyan R, Whittaker J. Corporate social responsibility and firm value: Disaggregating the effects on cash flow, risk and growth. Journal of Business Ethics. 2014; 124(4):633-657.

Mugwang’a FA. Determinants of capital adequacy of commercial banks in Kenya. A thesis submitted to University of Nairobi Business School for the award of MBA; 2014.

Grove SK, Burns N, Gray JR. The practice of nursing research: appraisal, synthesis, and generation of evidence. St. Louis, MO: Elsevier Saunders; 2013.

Babbie ER. The Practice of Social Research.12th ed. Belmont, CA: Wadsworth Cengage, Brians; 2010.

Wahua L. Corporate governance, financial soundness and economic development: Empirical evidence from Malaysia, Indonesia, and Turkey. Text of paper presented at the 2nd Annual International Conference on Accounting and Finance, ICAF 2015, At Colombo, Sri Lanka; 2015.

Daniel K. The effect of corporate social responsibility on financial performance of commercial banks in Kenya. A Thesis submitted to University of Nairobi Business School for the award of MSc in Finance; 2014.

Tiwari S, Dangwal RC. The influence of women directors on business performance: A study of Indian commercial banks. Proceedings of International Conference on Strategies in Volatile and Uncertain Environment for Emerging Markets held at Indian Institute of Technology Delhi, New Delhi; 2017. Retrieved on July 14-15, 2017.

Agalega E. Public sector accounting and finance. Ziphin Business World, 2nd Edition, Koforidua; 2014.

Garson GD. GLM univariate, ANOVA, and ANCOVA. Statistical Associates Publishing. California: Unites States; 2012.

University of Miami. MANOVA and MANCOVA. Being an online tutorial by the School of Education and Human Development; 2020.

Retrieved October 14, 2021. Available:https://sites.education.miami.edu/statsu/2020/10/16/manova-and-mancova/

Odutola A. Why NGX placed resort savings & Loans, 2 others on restructuring status; 2021. Retrieved 21/8/21. Available:http:/nairametrics.com/2021/04/29/why-nse-placed-resort-savings-loans-2-others-on-restructuring-status/

Laerd Dissertation. Purposive sampling; 2012. Retrieved on September 5, 2021. Available:http://dissertation.laerd.com/purposive-sampling.php#homogenous

Wahua L. Banks’ governance, country institutions, and capital adequacy in Nigeria. Asian Journal of Art, Humanities and Social Studies. 2020; 3(1):1-14.

Fabaca R, Calopaa MK, Sestanj-Peric T. Relationship between CSR and financial performance Companies within ZSE CROBEX10® Index. Journal of Corporate Governance, Insurance, and Risk Management (JCGIRM). 2016; 3(1):167-177.

Mahoney L, Roberts W. Corporate social and environmental performance and their relation to financial performance and institutional ownership: Empirical evidence on Canadian firms. Accounting Forum. 1997; 31(2007): 233–253.

Makni R, Francoeur C, Bellavance F. Causality between corporate social performance and financial performance: Evidence from Canadian firms. Journal of Business Ethics. 2009; 89(3):409-422.

Rapti E, Medda F. Corporate social responsibility and financial performance in the airport industry; 2012. Available:https://www.ucl.ac.uk/qaser/pdf/publications/csr_airports.pdf [Retrieved 12 October 2021].

Hirigoyen G, Poulain-Rehm T. Relationships between corporate social responsibility and financial performance: What is the causality? Journal of Business & Management. 2015; 4(1):18-43.