scholarly journals Environmental disclosure practice in the Serbian banking sector

2021 ◽  
Vol 26 (2) ◽  
pp. 115-144
Author(s):  
Aida Hanić ◽  
Olivera Jovanović ◽  
Slavica Stevanović
Keyword(s):  
Financial Performance ◽  
Financial Reporting ◽  
Positive Relationship ◽  
Banking Sector ◽  
Local Community ◽  
Banking Industry ◽  
Utilization Efficiency ◽  
Environmental Disclosure ◽  
Disclosure Practice ◽  
Systemically Important Banks

This paper aims to: a) analyse the environmental disclosure practice in the Serbian banking sector, b) determine whether the degree of disclosure is higher in the case of big, i.e. systemically important banks, and c) examine if there is a positive relationship between the banks' CSR practice and their financial performance. The environmental disclosure index (EDI) based on 15 variables was employed to measure environmental disclosure performance for the Serbian banking industry. The data were generated through content analysis of the annual and sustainability reports of a total of 10 banks, five of which were classified as systemically important banks for the period 2015-2019. The sample was determined by the availability of reports for the analysed period and the bank establishment year. The results show that the majority of Serbian banks discloses their environmental policy (74%), the undertaken environmental activities with the local community (51%), and the utilization efficiency of water, energy, and paper (48%). Although the findings indicate that the environmental disclosure practice among all banks in Serbia is growing, the reports are not standardized. In addition, the systemically important banks in Serbia do not have a better disclosure practice. The econometric analysis implies that the bank's status does not influence the level of environmental disclosure and that there is no positive relationship between financial performance (ROA and ROE) and EDI. This study has implications for policymakers and accounting bodies in Serbia in standardizing non-financial reporting and creating certain green and sustainable banking guidelines.

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.

Intellectual capital and performance of Islamic and conventional banking

2019 ◽  
Vol 38 (7) ◽  
pp. 518-537 ◽  
Author(s):  
Amina Buallay
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Positive Relationship ◽  
Banking Sector ◽  
Market Performance ◽  
Value Added ◽  
High Tech ◽  
Islamic Banks ◽  
Content Type ◽  
Conventional Banks

Purpose Intellectual capital (IC) is considered as a lifeblood of the high-tech and knowledge-based sectors. Therefore, there is a great need to highlight the importance of IC in the banking sector. Since the banking sector in the gulf countries is mainly based on Islamic and conventional banking, the purpose of this paper is to provide a comparative empirical analysis between IC efficiency in Islamic and conventional banks, and its impacts on a bank’s operational, financial and market performance. Design/methodology/approach This study examined 59 banks for five years to end up with 295 observations. The independent variable is the modified value added IC components; the dependent variables are performance indicators (return on assets, return on equity and Tobin’s Q). Two control variables are utilized in this study: bank-specific and macroeconomic. Findings The findings deduced from the empirical results demonstrate that there is a positive relationship between IC efficiency and financial performance (ROE) and market performance (TQ) in Islamic banks. However, in conventional banks, there is a positive relationship between IC and operational performance (ROE) and financial performance (ROE). Originality/value The results of this study can be used to present a successful model for the Islamic and conventional banks to concentrate more on the role of IC in enhancing the bank’s performance. In addition, the results of this study may provide a wake-up call for Islamic banks to examine the reasons for the imperfect relationship between the IC and asset efficiency (ROA), as well as for conventional banks to examine the reasons for an imperfect relationship between the IC and market value (TQ).

scholarly journals Relationship between competition and efficiency in the Czech banking industry

2013 ◽  
Vol 61 (7) ◽  
pp. 2701-2707 ◽  
Author(s):  
Iveta Řepková ◽  
Daniel Stavárek
Keyword(s):  
Positive Relationship ◽  
Banking Sector ◽  
Monopolistic Competition ◽  
Banking Industry ◽  
Empirical Literature ◽  
Data Envelopment ◽  
Reverse Effect ◽  
Banking Competition ◽  
Johansen Cointegration Test ◽  
The Relationship

The aim of the paper is to estimate the relationship between competition and efficiency in the Czech banking industry in the period 2001–2010. The theoretical definition and literature review of the relationship between banking competition and efficiency is included. Lerner index and Data Envelopment Analysis were used to estimate the degree of competition and efficiency in the Czech banking sector. The market structure of the Czech banking industry was estimated as a monopolistic competition and it was found a slight increase in the competition in the banking sector. The efficiency of the Czech banks increased in the analysed period. Using a Johansen cointegration test, the paper contributes to the empirical literature, testing not only the causality running from competition to efficiency, but also the reverse effect running from efficiency to competition. The positive relationship between competition and efficiency was estimated in the Czech banking sector. These findings are in line with the Quiet Life Hypothesis and the suggestions that the increase of the competition will contribute to efficiency.

scholarly journals ANALISIS KINERJA KEUANGAN BANK PEMBANGUNAN DAERAH DALAM PERSAINGAN PERBANKAN

2017 ◽  
Vol 10 (2) ◽  
pp. 12
Author(s):  
Juli Panglima Saragih
Keyword(s):  
Financial Performance ◽  
Regional Development ◽  
Business Performance ◽  
Banking Sector ◽  
Banking Industry ◽  
Financial Sector ◽  
Standing Position ◽  
Development Bank ◽  
Playing Field ◽  
Regional Development Bank

Regional Development Bank (RDB) as part of banking industry is still needed to support financing for regional developmet. Due to tighted financial sector competition, Regional Development Bank should achieve market share in their playing field. Meanwhile, rigidity of regulation in banking sector, Regional Development Bank should also increase their business performance to maintain their standing position and increasing profitability, as well. This qualitative research uses analysis method of financial ratios and trend analysis of profit growth, as well. Data used in this research is financial data of banking industry from 2012 to 2016. This research summerizes that generally financial performance of Regional Dvelopment bank is good in 2012 to 2016. But, due to tight competition in financial market, the RDB could not compete with big private bank and state-owned bank where those banks have already been categorized as BUKU 3 and BUKU 4 category. On the other hand, most RDB are still categorized as BUKU 1 and BUKU 2 that have limited covering business, contrast to BUKU 3 and BUKU 4.  Due to this condition, BPD should maintain its business stability and achieve excellent financial performance by obeying all regulations by managing asset and credit productively and profitably, implementing good corporate governance (GCG),  as well as business transformation of RDB. Moreover, RDB should develop their infrastruktures to increase financial service for their debitor and customer in the future. Keywords: Regional Development Bank, bank, financial performance, National Authority for Financial Sector (OJK).

scholarly journals Model and Financial Performance: Panel Data in Causality and Cointegration Test

2018 ◽  
Vol 7 (3.27) ◽  
pp. 391
Author(s):  
Amir Indrabudiman
Keyword(s):  
Panel Data ◽  
Financial Performance ◽  
Causal Relationship ◽  
Financial Reporting ◽  
Banking Industry ◽  
Cointegration Test ◽  
Test Results ◽  
Performance Variables ◽  
The Status ◽  
Size Growth

This paper aims to analyze the interaction between financial performance variables and bankruptcy status of companies in the banking industry in Indonesia. This study used the test of causality and cointegration of panel data for variable bankruptcy status and variable of financial performance among others (variable of NPL, ROA, CAR, NIM, SIZE, GROWTH, LEVERAGE) at 43 banks listed on BEI during 2010-2016 financial reporting period. From the research conducted in the findings that between the status of bankruptcy and variable financial performance of banks in Indonesia are only a few variables that have a two-way relationship, this is seen in the test results of causality lags 1, using lags 5, 10 and 15 this causal relationship is getting smaller . However, cointegration has been confirmed by using lags 1-1 to 1-4 lags interval premises, there are 7 variables that in each cointegrated each other.

Performance of banking industry in Bangladesh: Insights of CAMEL rating

2017 ◽  
Vol 04 (02n03) ◽  
pp. 1750006 ◽  
Author(s):  
Syed Moudud-Ul-Huq
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Banking Sector ◽  
Banking Industry ◽  
Rating System ◽  
Managerial Ability ◽  
Strategic Plans ◽  
Composite Rating ◽  
Asset Quality

This study attempts primarily to measure the financial performance of banking industry of Bangladesh for the periods 2013–2014 and to rate them according to the composite rating system. For this purpose, 10 private commercial banks (PCBs) have been selected from 38 PCBs. CAMEL has critically analyzed the financial performance of these banks. This finds that most of the banks get 2.14 with an average rating of composite range, where only Eastern Bank Ltd. gets “Strong” rating, seven PCBs get “Satisfactory” rating, AB Bank Ltd. and City Bank Ltd. lay middle of the range of composite score. From this ground, it is clearly reflected that most of the PCBs in Bangladesh have performed quite satisfactorily in recent years. The performance of most banks is dependent more on the managerial ability in formulating strategic plans and the efficient implementation of its strategies. Maintenance of asset quality is the major challenge in this year and is feared to remain so in 2014. The banking sector in Bangladesh has passed somewhat an average year regarding governance, profitability and soundness in 2013. Finally, it is recommended that the banks should be more careful to ensure the quality of assets and its uses, and increased their efficiency in managerial grids.

scholarly journals The Qualitative Characteristics of Accounting Information, Earnings Quality, and Islamic Banking Performance: Evidence from the Gulf Banking Sector

2020 ◽  
Vol 8 (2) ◽  
pp. 30
Author(s):  
Ibrahim Elsiddig Ahmed
Keyword(s):  
Financial Reporting ◽  
Positive Relationship ◽  
Banking Sector ◽  
Earnings Quality ◽  
Negative Relationship ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Annual Reports ◽  
Significant Positive Relationship ◽  
Qualitative Characteristics

The study aims to operationalize financial reporting quality in terms of the qualitative characteristics (QCs) as stated by the Accounting and Auditing Organization of Islamic Financial Institutions (AAOIFI) standards, as well as to investigate their association with earnings quality (EQ) and banking performance. The study uses secondary data extracted from DataStream to operationalize and measure the financial reporting quality in the annual reports of 25 out of the 27 Islamic banks in the Gulf Council Countries (GCC) for a 5-year period (2014–2018), meaning 125 annual reports were used. The study applies a manual content analysis to the annual reports to score all the items of QCs and operationalizes 25 measurement items that represent the six QCs. All items use 5-point Likert-type scales to compute the sub-score and the overall index through the Neural Network System. The findings of the model paths show a significant positive relationship between EQ and most of the QCs. The first hypothesis is partially accepted as there is a positive relationship between EQ and relevancy, reliability, prudence and general quality; however, there is no significant relationship between EQ and understandability and there is a significant negative relationship between EQ and comparability. Moreover, the study finds a significant positive relationship between EQ and ROA on one hand and EQ and ROE on the other hand (p-value = 0.00), meaning the second hypothesis is supported.

scholarly journals Digital banking impact on Turkish deposit banks performance

2018 ◽  
Vol 13 (3) ◽  
pp. 48-57 ◽  
Author(s):  
Eyup Kahveci ◽  
Bert Wolfs
Keyword(s):  
Financial Performance ◽  
Banking Sector ◽  
Banking Industry ◽  
Negative Impact ◽  
Or Efficiency ◽  
Second Stage ◽  
Technological Developments ◽  
Physical Assets ◽  
Retail Banks ◽  
Service Channels

The technological developments in the banking sector have significant implications for banks and are dramatically changing the way retail banks conduct their business. Banks can invest in digital banking (DB) services either to acquire a strategic advantage or because doing so has become a strategic necessity. This study is organized to examine if DB service channels have any positive or negative impact on Turkish deposit banks’ performance. With this aim in mind, in the first stage of the proposed DEA model, physical assets are used. Then, in the second stage, DB service channels are added to see if they have any impact on banks’ performance. The results show that the banks are investing in DB services just to keep the competition as it is. In other words, they invest in DB services as a strategic necessity. DB services do not provide any strategic advantage to any banks in terms of financial performance or efficiency since the banks are already efficient. Investing in DB only helped to preserve their strategic positions. The Turkish deposit banking industry is very competitive and very profitable, and it is necessary to invest in DB services just to keep the competition as it is.

Comparative Profitability Analysis of Islamic Banks and Conventional Banking in Oman-A Case study of Bank Nizwa and Bank Dhofar

2019 ◽  
Vol 118 (11) ◽  
pp. 244-254
Author(s):  
Mohammad Noor Alam ◽  
Md Shabbir Alam ◽  
Naushad Alam
Keyword(s):  
Financial Performance ◽  
Interest Rates ◽  
Banking Sector ◽  
Research Study ◽  
Banking Industry ◽  
Islamic Banks ◽  
Profitability Analysis ◽  
Net Profit ◽  
Profitability Ratios

The banking industry of Oman is a highly enhancing industry with 17 licensed banks. The Central Bank of Oman is the primary regulator of the banking industry of Oman and all the essential factors like fixing interest rates, issuing bonds and more are the responsibilities of this bank. This study was conducted to determine the financial performance of two renowned banks of Oman. Bank Nizwa and Bank Dhofar are the key banks in Oman. The present study is important because it will focus strictly on the banking sector of Oman. In order to conduct the present research study, the performance of four profitability ratios namely net profit margin, ROA, ROE and ROCE will be estimated for the last five years i.e. 2013 to 2018 for both the banks.

scholarly journals Corporate social responsibility and financial performance: Fact or fiction? A look at Ghanaian banks

2014 ◽  
Vol 14 (1) ◽  
Author(s):  
Daniel F. Ofori ◽  
Richard B. Nyuur ◽  
Mildred D. S-Darko
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Positive Relationship ◽  
Banking Sector ◽  
Primary Data ◽  
Debt Ratio ◽  
Corporate Social ◽  
The Impact ◽  
Structured Questionnaire

Orientation: With banks faced with fulfilling the increasing demands of diverse stakeholders, this study sought to explore the views and motives for corporate social responsibility practices in the Ghanaian banking sector and also to investigate any possible relationship between these practices and financial performance.Research purpose: This article examined the impact of corporate social responsibility on financial performance using empirical evidence from the Ghanaian banking sector.Motivation for the study: Although corporate social responsibility is a hot topic in Ghana and banks do practise it, no detailed study has been conducted to ascertain whether banks derive any benefits therefrom.Research design, approach and method: A sample size of 22 banks was involved. A structured questionnaire was used to obtain primary data whilst archival records were used to gather the secondary data.Main findings: The findings revealed that banks in Ghana view corporate social responsibility practices to be a strategic tool; banks are motivated to practise corporate social responsibility by legitimate reasons as much as they are motivated by profitability and sustainability reasons. Also, although there is a positive relationship between corporate social responsibility practices and financial performance, the financial performance of banks in Ghana does not depend significantly on their corporate social responsibility practices but rather on other control variables, such as growth, origin, debt ratio, and size.Practical implications: Properly adopted and implemented, corporate social responsibility can pay its way by contributing toward firm performance.Contribution: There is a positive but currently insignificant relationship between corporate social responsibility and financial performance amongst Ghanaian banks. However, given the numerous benefits of corporate social responsibility, it is recommended that firms continue to give priority to this practice.

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