Abstract
The paper examines the impact of banks environmental performance on their financial and market performance. We collect data from 56 gulf cooperative council (GCC) banks for the period 2010–2019. We apply ordinary least square (OLS), fixed effect, and generalized method of moments (GMM) estimation techniques and show that GCC banks' environmental performance negatively affects their accounting performance. The results, however, exhibit no significant impact of banks' environmental performance on market performance. Moreover, conventional banks have better environmental performance than their Islamic counterparts. Our results are consistent across different estimation techniques after controlling for endogeneity issues. The findings of the study are novel and offer important policy implications for management, regulatory authority, and environmental activists.
| Original language | English |
|---|---|
| Pages (from-to) | 2882-2907 |
| Number of pages | 26 |
| Journal | Business Strategy and the Environment |
| Volume | 31 |
| Issue number | 7 |
| Early online date | 31 Mar 2022 |
| DOIs | |
| Publication status | Published - 7 Nov 2022 |
Bibliographical note
© 2022 ERP Environment and John Wiley & Sons Ltd.This is the peer reviewed version of the following article: Hasan, R, Miah, MD & Hassan, MK 2022, 'The nexus between environmental and financial performance: Evidence from gulf cooperative council banks', Business Strategy and the Environment, vol. 31, no. 7, pp. 2882-2907., which has been published in final form at https://doi.org/10.1002/bse.3053. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited.
This document is the author’s post-print version, incorporating any revisions agreed during the peer-review process. Some differences between the published version and this version may remain and you are advised to consult the published version if you wish to cite from it.
Keywords
- GCC
- commercial banks
- environmental performance
- financial performance
- green banking
ASJC Scopus subject areas
- Business and International Management
- Geography, Planning and Development
- Strategy and Management
- Management, Monitoring, Policy and Law