The Mediating Role of Green Disclosures on the Relationship Between Sustainability and Financial Performance in an Emerging Market

Srouji, Anan F.; Hamdallah, Madher E.; Zulkarnain, Lubis

doi:10.1007/978-3-031-42463-2_28

Cited by 1 publication

(2 citation statements)

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“…The results demonstrate a moderating influence of GI on this relationship, in accordance with the conclusion of Mengistu and Panizzolo (2022) the indicators used to evaluate progress toward industrial sustainability goals were selected based on their ability to improve financial benefits, decrease expenses, increase market competitiveness, enhance resource utilization efficacy, and promote stakeholder well-being. However, while stakeholders with noncontractual relationships to businesses have a positive impact on GIs, governmental administrations can have a detrimental effect, hindering businesses' efforts to implement GI (Srouji et al, 2023;Thomas et al, 2021). The findings, nonetheless, indicate that the level of development of the GI can support high-quality economic performance (Alsmadi et al, 2023;Khairunnessa et al, 2021;Xu & Gao, 2022).…”

Section: Discussionmentioning

confidence: 95%

“…GI describes initiatives taken to advance the creation and application of environmentally friendly methods, products, management systems, and procedures (Kemp & Arundel, 1998). Green management innovation, green process innovation, and green product innovation comprise this concept (Chen et al, 2022;Srouji et al, 2023). Financial institutions have identified green finance as a way to minimize environmental risk and promote environmental quality (Xu & Gao, 2022).…”

Section: Green Innovationmentioning

confidence: 99%

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The impact of green innovation on sustainability and financial performance: Evidence from the Jordanian financial sector

Srouji,

Hamdallah,

Al‐Hamadeen

et al. 2023

Bus Strat Dev

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The purpose of this study is to examine the relationship between sustainability performance (SP) and financial performance (FP), based on performance disclosures (reporting) of the Jordanian financial sector for the period of 2017–2020. The study employs green innovation (GI) indicators as moderating and mediating variables; by using hierarchical regression; as means of unlocking and examining the relationship between SP and FP; through the lens of the stakeholder theory. The hierarchical regression findings suggest that GI indicators partially mediate the relationship between SP and FP, but do not demonstrate a moderating effect. As a main result, it is indicated that Jordanian financial institutions may use SP transparency indicators as an incentive variable, which could influence their overall FP. The research also contributes to the existing literature by adding insight into the use of GI indicators in a developing country and the potential impact on financial institutions markets. These findings lend empirical credence to the generally held belief that increase disclosure benefits for both internal and external users.

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