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dc.contributor.authorBose, Sudipta
dc.contributor.authorKhan, Habib Zaman
dc.contributor.authorMonem, Reza M
dc.date.accessioned2021-01-19T03:30:25Z
dc.date.available2021-01-19T03:30:25Z
dc.date.issued2020
dc.identifier.issn0964-8410
dc.identifier.doi10.1111/corg.12349
dc.identifier.urihttp://hdl.handle.net/10072/401259
dc.description.abstractResearch Question/Issue A firm's choice to “go green” largely remains unregulated worldwide. This study uses an institutional setting in Bangladesh experiencing a green banking regulatory reform to examine whether banks' green performance translates into improved financial performance and whether this is moderated by banks' political connections. Research Findings/Insights Results based on a sample of 172 firm‐year observations from 2008 to 2014 suggest that green banking performance is positively associated with a bank's financial performance. Further analysis suggests that cost efficiency mainly drives this relationship. However, banks' political connections negatively affect this relationship by counterbalancing green banking's non‐financial benefits. Our findings are robust to sensitivity tests that examine endogeneity concerns using difference‐in‐differences (DiD) and propensity score matching (PSM) analyses and Heckman's two‐stage analysis. Theoretical/Academic Implications Most prior studies on corporate social responsibility (CSR) were conducted in voluntary settings: however, our study utilizes a unique regulatory setting in Bangladesh. With this exogenous shock to the banking industry, the regulatory setting helped to alleviate endogeneity concerns arising from voluntary motives behind CSR performance. To the best of our knowledge, this is the first study to examine any link between green banking performance in a regulatory setting and banks' financial performance. Practitioner/Policy Implications This study's findings suggest that sustainable business practices promoted through regulatory intervention can improve financial performance. A regulatory green banking initiative can be a win–win for all competing stakeholders. Our findings have significant policy implications for governments and regulatory agencies worldwide in the fight against global warming and climate change.
dc.description.peerreviewedYes
dc.languageEnglish
dc.publisherWiley
dc.relation.ispartofjournalCorporate Governance: An International Review
dc.subject.fieldofresearchAccounting, auditing and accountability
dc.subject.fieldofresearchSustainability accounting and reporting
dc.subject.fieldofresearchcode3501
dc.subject.fieldofresearchcode350107
dc.subject.keywordsSocial Sciences
dc.subject.keywordsBusiness, Finance
dc.subject.keywordsManagement
dc.subject.keywordsBusiness & Economics
dc.titleDoes green banking performance pay off? Evidence from a unique regulatory setting in Bangladesh
dc.typeJournal article
dc.type.descriptionC1 - Articles
dcterms.bibliographicCitationBose, S; Khan, HZ; Monem, RM, Does green banking performance pay off? Evidence from a unique regulatory setting in Bangladesh, Corporate Governance: An International Review, 2020
dc.date.updated2021-01-18T04:31:54Z
dc.description.versionAccepted Manuscript (AM)
gro.description.notepublicThis publication has been entered as an advanced online version in Griffith Research Online.
gro.rights.copyright© 2020 John Wiley & Sons Ltd. This is the peer reviewed version of the following article: Does green banking performance pay off? Evidence from a unique regulatory setting in Bangladesh, Addiction, 2020, which has been published in final form at https://doi.org/10.1111/corg.12349. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving (http://olabout.wiley.com/WileyCDA/Section/id-828039.html)
gro.hasfulltextFull Text
gro.griffith.authorMonem, Reza


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