scholarly journals Impact of Environmental Performance on Financial Performance: Empirical Evidence from Indian Banking Sector

2021 ◽  
Vol 12 (1) ◽  
pp. 13-24
Author(s):  
Parul Munjal ◽  
P. Malarvizhi
Keyword(s):  
Financial Performance ◽  
Empirical Evidence ◽  
Significant Relationship ◽  
Environmental Performance ◽  
Banking Sector ◽  
Secondary Data ◽  
Capital Intensity ◽  
Environmental Disclosure ◽  
Policy Makers ◽  
Environmental Practices

There has been long-standing debate over whether or not firms gain economic competiveness from reducing their impact on the environment. Although ample literature is available on association between environmental performance and financial performance across various sectors, little empirical evidence is available in context of Indian banking sector. This research aims to analyze whether there is any significant relationship between environmental performance and financial performance of banks operating in India for a period 2013-14 to 2017-18. Secondary data has been collected for a sample of 83 banks operating in India. Content analysis was applied to extract information about environmental performance disclosed by sample banks followedby construction of environmental disclosure score index. Hierarchical multiple regression was applied to analyze relationship between environmental performance and financial performance after controlling for effects of size, financial leverage and capital intensity. Results exhibit no significant relationship between environmental performance and financial performance of banks operating in India. Findings of this research are expected to provide insight to users and readers of financial statements to have better understanding about the environmental practices carried out by banks. It would also contribute significantly towards decision making for policy makers in Indian banking sector to establish mandatory environmental legislations for reporting on environmental practices in order to improve non financial disclosure and financial performance in Indian banking sector.

scholarly journals “Environmental Performance Reporting in Commercial Banks of India: Exploring Association with Financial Performance”

2019 ◽  
Vol 8 (12) ◽  
pp. 4390-4395
Keyword(s):  
Private Sector ◽  
Financial Performance ◽  
Environmental Performance ◽  
Commercial Banks ◽  
Banking Sector ◽  
Secondary Data ◽  
Annual Reports ◽  
Extensive Literature ◽  
Environmental Practices ◽  
Performance Reporting

Environmental issues such as global warming and subsequent climate changes have stimulated the need for environmental performance reporting by organizations. Extant literature highlights that adoption of environmental practices is expected to influence financial performance of organizations. Despite extensive literature available on relationship between environmental performance and financial performance, results still remain indecisive. This research attempts to investigate environmental performance reporting in the context of commercial banks operating in India and compare the relationship between environmental performance and financial performance on a sample of 21 public and 20 private sector banks for a period of five years (2013-14 to 2017-18) using content analysis and linear regression. Secondary data was collected from annual reports, corporate social responsibility reports, business responsibility reports and sustainability reports of respective banks. Results obtained evince no considerable association amid environmental performance and financial performance of public sector banks functioning in India. Correspondingly, no considerable association was found amid environmental performance and return on equity of private sector banks. Conversely, positive significant relationship was observed between environmental performance and return on assets of private sector banks. Research provides an insight to banking sector to incorporate environmental practices in core business operations to improve profitability.

scholarly journals The Effects of Financial and Environmental Performances on Firm Value with Environmental Disclosure as an Intervening Variable

2020 ◽  
Vol 12 (2) ◽  
pp. 90-99
Author(s):  
Theresia Coline Sari Rinsman ◽  
Andrian Budi Prasetyo
Keyword(s):  
Financial Performance ◽  
Environmental Performance ◽  
Firm Value ◽  
Stock Price ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Corporate Sustainability ◽  
Secondary Data ◽  
Environmental Disclosure

This study aims to analyze the effects of financial performance and environmental performance to firm value with environmental disclosure as an intervening variable. Financial performance which measured by Ratio On Sales (ROS) and environmental performance which measured by PROPER ranking act as independent variables and firm value which measured by stock price acts as dependent variable also environmental disclosure which measured by GRI Standards as an intervening variable. This study uses secondary data and selects the sample used purposive sampling method. The samples consist of non financial companies listed in the Indonesia Stock Exchange (IDX), participated in the PROPER (Program Penilaian Peringkat Kinerja Perusahaan / Performance Rating Assestment Program on Environment Management) and published both annual report and sustainability report for 2017-2018. Partial Least Squares technique is chosen for the study statistic analysis. Results from this research show that financial performance has a negative impact on environmental disclosure, environmental performance has a significant positive impact on environmental disclosure and environmental disclosure does not affect the firm value. Next, the environmental disclosure is not able to intervene the effects of financial performance and environmental performance on firm value. The implications of this research are prove that the environmental aspects of information disclosed by the company have not been an important assessment for investors in viewing the performance of a company and also suggest investors to consider the company's environmental disclosure in making investment decisions because it contain an important aspect of corporate sustainability.

scholarly journals Financial Performance in Indonesian Companies: The Role of Environmental Performance and Environmental Disclosure

2020 ◽  
Vol 12 (2(J)) ◽  
pp. 27-33
Author(s):  
Noegrahini Lastiningsih ◽  
Khoirul Aswar ◽  
Ermawati .
Keyword(s):  
Financial Performance ◽  
Environmental Performance ◽  
Sampling Method ◽  
Stock Exchange ◽  
Secondary Data ◽  
Positive Influence ◽  
Analysis Method ◽  
Data Types ◽  
Environmental Disclosure

The aim of this study is to acquire empirical evidence that environmental performance and environmental disclosure has an influence on financial performance. The key differentiation between this study and previous studies is the use of different variables and measurement methods. The hypothesis of this study is based on stakeholder theory and legitimation theory. The purposive sampling method was used to collect data from manufacture companies listed in the Indonesian Stock Exchange and the PROPER 2016-2018 program. Instruments for classic assumptions have been tested. Afterwards, multiple linear regression is used as the analysis method, and secondary data types with the use of documentation methods. The outcome of this study shows that environmental performance and environmental disclosure has a significantly positive influence towards financial performance.

scholarly journals THE EFFECT OF MANAGERIAL OWNERSHIP AND ENVIRONMENTAL PERFORMANCE ON CORPORATE ENVIRONMENTAL DISCLOSURE AND FINANCIAL PERFORMANCE

2019 ◽  
Vol 2 (1) ◽  
pp. 37-49
Author(s):  
Sigit Hermawan ◽  
Evie Oktaviani ◽  
Sarwenda Biduri
Keyword(s):  
Financial Performance ◽  
Environmental Performance ◽  
Listed Company ◽  
Secondary Data ◽  
Annual Reports ◽  
Linear Regression Method ◽  
Managerial Ownership ◽  
Corporate Environmental Performance ◽  
Environmental Disclosure ◽  
Independent Variable

This research is aimed to examine empirically the effect of managerial ownership, and environmental performance on corporate environmental disclosure, and financial performance. The research used an independent  variable of managerial ownership, and environmental performance. The dependent variable is corporate environmental disclosure, and financial performance. The research uses secondary data from annual report of listed company manufactures in PROPER and IDX in 2012-2016. The total study sample was 80 company manufactures whose annual reports are selected by purposive sampling. The research method used is the classical assumption testing and hypothesis testing with multiple linear regression method. The results of this research showed that the variables of managerial ownership, and environmental performance have not significantly effect on the corporate environmental performance. The managerial ownership and environmental performance have a significant effect on the financial performance. The managerial ownership and environmental performance have a simultaneous effect on the corporate environmental performance and financial performance

scholarly journals R&D Investment, Financial and Environmental Performance Nexuses via Bootstrap Fourier Quantiles Granger Causality Test

Economies ◽  
2021 ◽  
Vol 9 (2) ◽  
pp. 85
Author(s):  
Feng-Li Lin
Keyword(s):  
Financial Performance ◽  
Granger Causality ◽  
Environmental Performance ◽  
Co2 Emission ◽  
Positive Relationship ◽  
Granger Causality Test ◽  
Causality Test ◽  
Emission Reductions ◽  
Policy Makers ◽  
D Investment

This study investigated the relationship between R&D investments and financial and environmental performance. The direction, size, and significance of various phases of these variables were generated using the bootstrap Fourier quantiles Granger causality test. In our results, a positive relationship between R&D investment and CO2 emission reductions was found at two tails of quantiles. Additionally, we observed a significantly positive relationship between financial performance and CO2 emission reductions at the 0.5 quantile and above. The correlation between R&D investment and financial performance was identified to be positive under the 0.3, 0.4, 0.5 and 0.9 quantiles and negative under the 0.5 and 0.6 quantiles. The changing linkages among R&D investment, environmental performance and financial performance found in this study provide important information for policy makers, aiding in the development of R&D strategies to upgrade financial and environmental performance simultaneously.

scholarly journals IMPACT OF INFORMATION TECHNOLOGY INVESTMENT TO FINANCIAL PERFORMANCE ON BANKING SECTOR

2018 ◽  
Vol 2 (1) ◽  
pp. 41-46
Author(s):  
Hendra Gunawan ◽  
Serlyna Serlyna
Keyword(s):  
Information Technology ◽  
Financial Performance ◽  
Banking Sector ◽  
Stock Exchange ◽  
Secondary Data ◽  
Sample Population ◽  
Manufacturing Companies ◽  
Financial Investment ◽  
Impact Of Technology ◽  
The Impact

This study examines the impact of technology on the performance of financial investment in banking companies listed in Indonesia Stock Exchange to prove its influence on the development of the banking company's financial performance. The data used in this research is secondary data uses financial statements that have been audited. Data analysis technique used is simple regression analysis. Results showed that between investments in information technology affect the company's financial performance. The results of this study illustrate that the company's financial performance would be if the investment in information technology in the company are used effectively and efficiently. This research is important for companies and organizations, in order to better the use or utilization of information technology in the enterprise. The company is only limited to the banking companies listed in Indonesia Stock Exchange, then further research is recommended to add criteria and indicator others that have not been addressed in this study, in addition to subsequent authors can also extend the sample population to another company with a different field such as manufacturing companies.

scholarly journals Do Environmental Performance and Disclosure Contribute to the Economic Performance? The Moderating Role of Corporate Action

2021 ◽  
Vol 4 (1) ◽  
pp. 29-47
Author(s):  
Indra Saputra ◽  
Etty Murwaningsari
Keyword(s):  
Economic Performance ◽  
Environmental Performance ◽  
Stock Exchange ◽  
Secondary Data ◽  
Linear Regression Method ◽  
Company Performance ◽  
Manufacturing Companies ◽  
Environmental Disclosure ◽  
Corporate Action ◽  
Negative Effect

Objective – The purpose of this study is to examine the effect of environmental performance and environmental disclosure on economic performance of the Indonesian listed manufacturing companies by using corporate action as a moderating variable.  Design/methodology – This study used secondary data obtained from the official website of the Indonesia Stock Exchange and the Ministry of Environment and Forestry, Indonesia. The sample consisted of manufacturing companies that are listed and follow the Company Performance Rating Assessment Program (Program Penilaian Peringkat Kinerja Perusahaan/PROPER) issued by the Ministry of Environment and Forestry for the period of 2011-2016. The study employed a purposive sampling approach, which includes 22 companies with 132 observations. The multiple linear regression method was used for data analysis. Results – The results indicated that environmental performance has a significant positive effect while environmental disclosure has a significant negative effect on economic performance. The testing of corporate action as a moderating variable demonstrated that it could not strengthen the effect of environmental performance on economic performance. However, it could enhance the effect of environmental disclosure on economic performance.

scholarly journals The Effect of Branchless Banking Strategy on the Financial Performance of Commercial Banks in Kenya

2017 ◽  
Vol 8 (4) ◽  
pp. 167 ◽  
Author(s):  
Gift Kimonge Dzombo ◽  
James M. Kilika ◽  
James Maingi
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Banking Sector ◽  
Secondary Data ◽  
Exploratory Research ◽  
Electronic Banking ◽  
Economic Activities ◽  
Significance Level ◽  
Negative Effect ◽  
The Individual

The Banking sector acts as the life blood of modern trade and economic development. Commercial banks influence, facilitate and integrate the economic activities like resources mobilization, poverty elimination, production, and distribution of public finance. The financial performance of commercial banks has great implications in the financial sector and in the country at large, and will still remain an important subject of concern by all the stakeholders in the banking industry. In the last two decades, a lot of banking innovation has taken place in order to improve commercial banks financial performance. Branchless banking which involves the use of agency banking and electronic banking channels in the distribution of banking products and services is one such innovation. This study purpose was to evaluate the effect of branchless banking on the financial performance of commercial banks in Kenya. The specific objectives of the study were to analyze the individual effects of agency banking and electronic banking channels on the financial performance of commercial banks in Kenya and the combined effect of both agency and electronic banking on the financial performance of commercial banks in Kenya. The study adopted an exploratory research design. A survey of all the 42 licensed commercial banks in Kenya was done. Both primary and secondary data on branchless banking and financial performance of banks was obtained from the individual commercial banks, Central Bank of Kenya banking annual supervision reports respectively. Return on Assets (ROA) was used as the main indicator of commercial banks financial performance. The amount of investment in agency and electronic banking was used as indicator for agency and electronic banking. Data analysis was done using SPSS and STATA statistical softwares. Descriptive statistics, diagnostic tests and tests of hypothesis were done. Data was presented using tables and charts. Study findings indicated that when used in isolation; both agency and electronic banking had a significant negative effect on the financial performance of commercial banks at 5 percent significance level. However, when agency and electronic banking channels were used together as a multichannel strategy, they had a significant positive effect on bank’s financial performance at 5 percent significance level. The study recommends that for positive returns, commercial banks should invest in both agency and electronic banking as a multichannel strategy since these channels are complimentary to each other.

scholarly journals The Good and Bad News about the New Liquidity Rules of Basel III in Islamic Banking of Malaysia

2019 ◽  
Vol 12 (3) ◽  
pp. 120
Author(s):  
Shazleena Mohamed Zainudin ◽  
Siti Zaleha Abdul Rasid ◽  
Rosmini Omar ◽  
Rohail Hassan
Keyword(s):  
Banking Sector ◽  
Secondary Data ◽  
Islamic Banking ◽  
Present System ◽  
Basel Iii ◽  
Policy Makers ◽  
Coverage Ratio ◽  
New Horizons ◽  
Regulatory Guidelines ◽  
Unique Framework

How has Basel III (Bank for International Settlements), regarding the computation, measurement, and management of the liquidity coverage ratio (LCR), vitalized the Islamic banking sector in emerging economies? Vice versa, what is the Islamic banking sector’s capacity to respond in embracing Basel III? This study aims to review the current issues faced by a bank as it discusses the current regulatory guidelines and operational challenges in implementing the system. Based on the implementation of LCR preliminary secondary data of Malaysian banks between 2010 and 2016, this study finds that the readiness of LCR system implementation in the Islamic banking industry is currently low because LCR is still relatively new for all financial institutions and vendors. There is a huge gap between the present system infrastructure of the banks and the LCR model requirements as defined by BNM (Bank Negara Malaysia) under Basel III. Nevertheless, this finding opens new horizons of understanding and practically offers further investigations for the whole banking sector in Malaysia. Thus, policy makers, regulators, and industry players should utilize a unique framework for Islamic banks when strategizing liquidity risk management.

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