Publications in IJPSC

2025

1. Research Article

   ESG Risks in the Activities of International Banking Groups: Evidence from Ukraine

   Yurii Havryliuk, Liliia Zherdetska

   doi:10.61030/MHLU2636 PDF

   Abstract

   The relevance of this research is driven by the growing significance of environmental, social, and governance (ESG) factors in the financial sector, particularly in the context of globalization and climate change. The Ukrainian banking sector faces new challenges and opportunities associated with ESG risks, which can substantially affect investment attractiveness and long-term development. Analyzing these risks is crucial for Ukrainian banks to adapt to global standards and ensure the sustainability of their operations. The main purpose of this article is to study the key features of implementing the social and governance components of ESG risks in the activities of international banking groups, and their impact on the overall current investment climate and long-term economic development. The study examines the impact of ESG risks on the dynamics and pricing of Raiffeisen Bank International shares. As a risk factor, the bank's continued operations in the Russian Federation even after the full-scale invasion have been justified. Using ARMA, GARCH, and Markov-regime switching model (MS-GARCH with 2 regimes), it has been shown that ESG risks affect share prices through changes in profitability and increased volatility.

   Keywords ESG risks; Bank; Banking group; Stock volatility; Raiffeisen Bank; Investment climate

Research areas

• Governance 1
• Psychology 1
• Strategic Communication 1

Article keywords ESG risks; Bank; Banking group; Stock volatility; Raiffeisen Bank; Investment climate

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Affiliations

As stated in the articles at the time of publication; not necessarily the current position.

Co-authors

• Liliia Zherdetska 1