The influence of the dimensions of the environmental concept, social and management aspects of business on the business performance of financial institutions in the Republic of Serbia

This study examines the impact of implementing the core principles and dimensions of the ESG concept on the financial performance of financial institutions. The analysis focuses on six banks and four insurance companies operating in the Republic of Serbia over the period 2010-2024. Panel data methods were employed to explore causal relationships, with parameter estimates obtained using three panel data estimators. The results reveal that among the ESG dimensions, only environmental protection exerts a positive and statistically significant influence on the financial performance of banks and insurance companies in Serbia, whereas the social and governance dimensions show no significant effects.