Green banking disclosure, firm value and the moderating role of a contextual factor: Evidence from a distinctive regulatory setting

Abstract

The idea that green banking disclosure leads to increased firm value has been rightly considered as over‐simplistic. This paper builds on key prior insights by investigating whether combining green disclosure with other contextual factor, such as non‐performing loans, provides additional insight into the complex green disclosure–firm value relationship in a regulatory setting where green law has recently been enacted for the banking industry. We present an analysis of seven years of data sourced from listed banks in Bangladesh (2008–2014), with data analysed using multiple regression. Our findings indicate that, while green disclosure has a positive effect on the overall firm value of banks, this positive effect is negatively moderated by banks' non‐performing loans. This research contributes to the knowledge by showing that green disclosure alone is insufficient for creating market value for banks. Additional contextual matters need attention to understand the impact of green disclosure in contributing to increased market value for banks.

Organic versus cosmetic efforts of the quality of carbon reporting by top New Zealand firms. Does market reward or penalise?

“…First, similar to prior sustainability studies (Khan, Bose, Mollik, & Harun, 2021; Michelon et al, 2015), the potential endogeneity might weaken the finding of the causal relationship between QCR and market reputation. For example, a company's option regarding whether to engage in QCR activities might not be independent of its reputation, in this scenario, our findings may be subject to reverse causality (Eliwa et al, 2021; Khan, Bose, Mollik, & Harun, 2021; Khan, Bose, Sheehy, & Quazi, 2021).…”

Pengaruh Green Banking Disclosure Terhadap Nilai Perusahaan Pada Bank Umum Syariah Di Indonesia

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Developing an emission risk control model in coal‐fired power plants for investigating CO2 reduction strategies for sustainable business development

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