Examining the impact of sustainable practices on bank’s financial performance
*Raveena GabaCorresponding authorgabaraveena@gmail.comDepartment of Management and CommerceThe North Cap UniversityGurugram, Haryana, 122017, IndiaView full profile → , Deergha Sharmadeerghasharma@ncuindia.eduDepartment of Management and CommerceThe North Cap UniversityGurugram, Haryana, 122017, IndiaView full profile →
* Corresponding author · click or hover a name for details
- Received:
- 13 Feb 2024
- Published Online:
- 18 Dec 2024
- Article type:
- Research Article
- Language:
- EN
- Article no.:
- JIOS-1986
- Pages:
- 2443–2457
Abstract
Keywords
Subject Classifications
References
[1] R. S. Alimi, “Financial deepening and economic growth: A System GMM Panel Analysis with application to 7 SSA countries,” J. of Economic Studies, vol. 15, no. 3, pp. 100-110 (2015).
[2] P. G. Amidjaya and A. K. Widagdo, “Sustainability reporting in Indonesian listed banks: Do corporate governance, ownership structure and digital banking matter?,” J. Appl. Account. Res., vol. 21, no. 2, pp. 231-247 (2020).
[3] M. Azzam, A. AlQudah, A. Abu Haija, and M. Shakhatreh, “The association between sustainability disclosures and the financial performance of Jordanian firms,” Cogent Bus. Manag., vol. 7, no. 1, p. 1859437 (2020).
[4] O. M. Batae, V. D. Dragomir, and L. Feleagă, “The relationship between environmental, social, and financial performance in the banking sector: A European study,” J. Clean. Prod., vol. 290, p. 125791 (2021).
[5] A. Buallay, “Sustainability reporting and firm’s performance: Comparative study between manufacturing and banking sectors,” Int. J. Product. Perform. Manag., vol. 69, no. 3, pp. 431-445 (2020).
[6] A. Buallay, S. M. Fadel, J. Alajmi, and S. Saudagaran, “Sustainability reporting and bank performance after financial crisis: Evidence from developed and developing countries,” Competitiveness Rev.: Int. Bus. J., vol. 31, no. 4, pp. 747-770 (2021).
[7] J. L. Campbell, “Why would corporations behave in socially responsible ways? An institutional theory of corporate social responsibility,” Acad. Manag. Rev., vol. 32, no. 3, pp. 946–967 (2007).
[8] K. K. Dalal and N. Thaker, “ESG and corporate financial performance: A panel study of Indian companies,” IUP J. Corp. Gov., vol. 18, no. 1, pp. 44-59 (2019).
[9] R. Gaba and D. Sharma, “Benchmarking the sustainable banking performance of Indian commercial banks,” Int. J. Process Manag. Benchmarking, vol. 16, no. 1 (2024).
[10] P. Garg, “Impact of sustainability reporting on firm performance of companies in India,” Int. J. Mark. Bus. Commun., vol. 4, no. 3, pp. 38-45 (2015).
[11] W. Ghardallou, “Corporate sustainability and firm performance: The moderating role of CEO education and tenure,” Sustainability, vol. 14, no. 6, p. 3513 (2022).
[12] H. Haninun, L. Lindrianasari, and A. Denziana, “The effect of environmental performance and disclosure on financial performance,” Int. J. Trade Global Markets, vol. 11, no. 1/2, pp. 138-148 (2018).
[13] M. Hou, H. Liu, P. Fan, and Z. Wei, “Does CSR practice pay off in East Asian firms? A meta-analytic investigation,” Asia Pac. J. Manag., vol. 33, no. 1, pp. 195-228 (2016).
[14] P. Jain, V. Vyas, and D. P. S. Chalasani, “Corporate social responsibility and financial performance in SMEs: A structural equation modelling approach,” Global Bus. Rev., vol. 17, no. 3, pp. 630-653 (2016). [Online]. Available: https://doi.org/10.1177/0972150916630827.
[15] A. Jan, M. Marimuthu, R. Hassan, and Mehreen, “Sustainable business practices and firm’s financial performance in Islamic banking: Under the moderating role of Islamic corporate governance,” Sustainability, vol. 11, no. 23, p. 6606 (2019).
[16] K. Kumar and A. Prakash, “Developing a framework for assessing sustainable banking performance of the Indian banking sector,” Soc. Responsib. J., vol. 15, no. 5, pp. 689-709 (2019).
[17] R. S. P. Kumar and S. S. M. Kumar, “CSR practices in the Indian banking sector—An exploration,” Afr. J. Bus. Econ. Res., vol. 15, no. 3, p. 9 (2020).
[18] S. Maqbool and S. A. Hurrah, “Exploring the bi-directional relationship between corporate social responsibility and financial performance in Indian context,” Soc. Responsib. J., vol. 17, no. 8, pp. 1062-1078 (2021).
[19] McKinsey, “Banking on a sustainable path,” (2022). [Online]. Available: https://www.mckinsey.com/~/media/mckinsey/industries/financial%20services/our%20insights/global%20banking%20annual%20review%202022%20banking%20on%20a%20sustainable%20path/global%20banking%20annual%20review%202022%20banking%20on%20a%20sustainable%20path.pdf. [Accessed: Oct. 13, 2023].
[20] P. Munjal and D. Sharma, “Environmental performance reporting in commercial banks of India: Exploring association with financial performance,” Int. J. Innov. Technol. Explor. Eng., vol. 8, no. 12, pp. 4390-4395 (2019).
[21] V. Naciti, “Corporate governance and board of directors: The effect of a board composition on firm sustainability performance,” J. Clean. Prod., vol. 237, p. 117727 (2019).
[22] F. Neitzert and M. Petras, “Corporate social responsibility and bank risk,” J. Bus. Econ., vol. 92, no. 3, pp. 397-428 (2022).
[23] H. Nobanee and N. Ellili, “Impact of economic, environmental, and social sustainability reporting on financial performance of UAE banks,” Environmental, and Social Sustainability Reporting on Financial Performance of UAE Banks, May 20, 2017 (2017).
[24] D. Saxena, N. Dhall, and R. Malik, “Sustainable banking: A roadmap to sustainable development,” Corp. Gov. Sustain. Rev., vol. 5, no. 3, pp. 42-56 (2021).
[25] D. Sharma and P. Kumar, “Prioritizing the attributes of sustainable banking performance,” Int. J. Product. Perform. Manag. (2023).
[26] R. P. Singh, K. Nagdev, and N. Kishor, “Do green banking initiatives lead to competitiveness and improved financial performance? An empirical analysis of Indian banks,” Int. J. Public Sector Perform. Manag., vol. 10, no. 1, pp. 22-40 (2022).
[27] S. Sohail, F. Rasul, and U. Fatima, “Is internal and external mechanism of governance enriching the performance of the banking sector of Pakistan?,” Corp. Gov.: Int. J. Bus. Soc., vol. 17, no. 4, pp. 629-642 (2017).
[28] A. Stauropoulou, E. Sardianou, G. Malindretos, K. Evangelinos, and I. Nikolaou, “The effects of economic, environmentally and socially related SDGs strategies of banking institutions on their customers’ behavior,” World Dev. Sustain., vol. 2, p. 100051 (2023).
[29] U. Uwuigbe, T. O. Teddy, O. R. Uwuigbe, E. O. Emmanuel, O. Asiriuwa, G. A. Eyitomi, and O. S. Taiwo, “Sustainability reporting and firm performance: A bi-directional approach,” Acad. Strat. Manag. J., vol. 17, no. 3, pp. 1-16 (2018).
[30] P. Velte, “Does ESG performance have an impact on financial performance? Evidence from Germany,” J. Global Responsib., vol. 8, no. 2, pp. 169-178 (2017).
[31] S. A. Waddock and S. B. Graves, “The corporate social performance-financial performance link,” Strategic Manag. J., vol. 18, no. 4, pp. 303–319 (2017).
[32] M. C. Wang, “The relationship between firm characteristics and the disclosure of sustainability reporting,” Sustainability, vol. 9, no. 4, p. 624 (2017).
[33] G. Zhou, Y. Sun, S. Luo, and J. Liao, “Corporate social responsibility and bank financial performance in China: The moderating role of green credit,” Energy Econ., vol. 97, p. 105190 (2021).
