THE INFLUENCE OF THE DIMENSIONS OF THE ENVIRONMENTAL CONCEPT, SOCIAL AND MANAGEMENT ASPECTS OF BUSINESSON THE BUSINESS PERFORMANCE OF FINANCIAL INSTITUTIONS IN THE REPUBLIC OF SERBIA

Abstract

The influence of the implementation of the basic principles/dimensions of the ESG concept on the financial performance of financial institutions is the subject of this study. The research was conducted using the example of six banks and four insurance companies operating in the Republic of Serbia. The study covers the period from 2010 to 2024. Panel data analysis was used in the work, applying panel data analysis methods. The parameter estimates of the model were obtained using three panel data evaluators. The findings indicate that only environmental protection as a dimension of ESG has a positive impact on the performance of banks and insurance companies in the Republic of Serbia, while the other two dimensions of the concept do not have a statistically significant effect on financial performance.