Publication:
Corporate sustainability and financial performance of banks in OIC and non-OIC countries: the role of competition and institutions
Abstract
Globally, the awareness about sustainability has increased due to the lingering environment, social and governance-related issues. In this perspective, the role of social media and consumer awareness are important since they influence the corporate sector to care for sustainable development. Banks, being very important to the economy, contribute to sustainability through their internal (through governance, data security, etc.) and external (through environment-friendly loans , financial inclusion, etc.) practices. These practices are collectively called as environment, society, and governance (ESG) sustainability. ESG practices by banks are important since they operate on public funds, have interconnections with the businesses and at times bailed out at the expense of taxpayers. An intriguing question, though, is whether these ESG activities impact bank profitability and risk. Further, as identified in the literature, there are certain moderators such as competition and institutions which may impact the ESG-profitability and ESG-risk relationship. We investigate these relationships for Organization for Islamic Countries (OIC) and Non-OIC countries. Specifically, we employ data of 341 banks from 65 countries, further divided into Non-OIC (54 countries, 295 banks) and OIC countries (11 countries, 46 banks). ESG data has been used for the years 2007-2016 while the dynamic panel model has been estimated using the Generalized Methods of Moments technique ...
Keywords
Corporate sustainability , Financial performance , Banks , OIC countries , Non-OIC countries
Citation
Islam, M. U. (2019). Corporate sustainability and financial performance of banks in OIC and non-OIC countries: the role of competition and institutions (Doctoral dissertation). INCEIF, Kuala Lumpur. Retrieved from https://ikr.inceif.org/handle/INCEIF/3151
Publisher
INCEIF
Available in physical copy and downloadable format (Call Number: t HC 79 E5 I82)