Dataset and Tables of Results for the research article "ESG Initiatives and Financial Stability in the Korean Financial Industry: The Moderating Role of Ownership Concentration"

Dataset and Tables of Results for the research article "ESG Initiatives and Financial Stability in the Korean Financial Industry: The Moderating Role of Ownership Concentration" Abstract: Financial firms are emerging as key drivers of responsible and sustainable business practices, shaping sustainable development through the entities they choose to finance. The ownership structures and governance mechanisms of these entities can influence sustainability initiatives, with potential implications for financial stability due to the costs and risks of implementation. This study aims to examine the impact of ESG initiatives on the financial stability of Korean financial firms and understand how ownership concentration moderates this relationship. Utilizing fixed effects regression model, this study investigates 537 firm-year observations across 53 firms in the financial sector in Korea, encompassing banks, insurance companies, securities firms, and diversified financial services firms covering the years 2012 to 2023. The analysis reveals that for banks, environmental sustainability initiatives are positively associated with financial stability (coefficient = 0.0017; t = 1.84), while social responsibility initiatives have a negative association (coefficient = -0.0018; t = -2.00). In the case of insurance firms, overall sustainability efforts show a negative relationship with financial stability (coefficient = -0.0061; t = -1.72), driven mainly by the governance dimension (coefficient = -0.0074; t = -2.06). Additionally, in the case of banks, higher ownership concentration diminishes the positive impact of environmental sustainability on financial stability (coefficient = -0.0056; t = -1.90). Moreover, ownership concentration functions as a double-edged sword where its moderating impact varies depending on whether the financial firm is a high or low ESG performer. These findings highlight the importance of firm-specific dynamics in aligning with the institutional and societal expectations of ESG while navigating the complexities of ownership concentration as a pathway for financial firms to maintain financial stability.