My research interests lie in Empirical Corporate Finance, ESG, Sustainable Finance,  Financial Inclusion, & FinTech.

BANK'S COST OF CAPITAL AND BANK DIVERSIFICATION: ESG INTEGRATION IN DEVELOPED AND EMERGING ECONOMIES (First-year paper)
This study investigates the relationship between Environmental, Social, and Governance (ESG)integration, bank diversification, and cost of capital in commercial banks from developed and emerging economies from 2014-2021. Using the GMM dynamic panel model with data on 247 banks from 38 countries, the results suggest that ESG performance, especially the environmental dimension, is associated with a lower cost of capital for banks in developed economies. However, this relationship does not hold in emerging markets. Furthermore, income diversification is linked to lower capital costs for banks in developed countries but higher costs in emerging economies. The analysis also reveals that ESG integration and diversification strategies interact differently with bank cost of capital across economic settings, reducing capital costs in advanced economies but not having significant cost-lowering effects in emerging markets. These contrasts highlight the pivotal role of institutional environments in shaping ESG-performance interlinkages. The findings underscore the differential impact of ESG factors and diversification strategies on bank risk and performance across economic contexts. They provide insights to guide regulators in promoting sustainable finance practices suited to local environments.