<p>The banking sector plays a critical role in shaping sustainable economic development and upholding ethical responsibility toward future generations, particularly in emerging economies. This study investigates the nexus between green banking initiatives, corporate social responsibility (CSR), and financial performance metrics in influencing sustainable share performance of banks in Bangladesh from 2014 to 2023. Using balanced panel data from 19 commercial banks and employing Panel-Corrected Standard Errors (PCSE), the analysis highlights how sustainability-oriented banking practices translate into both ethical and financial outcomes. The results reveal that green banking positively and significantly enhances sustainable share performance, reflecting growing investor trust in environmentally responsible practices. Financial indicators such as earnings per share (EPS) and price-to-earnings (PE) ratios also positively impact sustainability performance, while sponsor shareholding reinforces institutional stability. In contrast, CSR expenditures show a negative effect, indicating that some philanthropic practices may not yet be strategically aligned with long-term sustainability or intergenerational equity goals. Control variables such as bank size and liquidity were found to be non-significant. This study advances the discourse on sustainable finance by demonstrating how the integration of green banking and CSR practices can embody moral responsibility and intergenerational justice. It offers actionable insights for bank managers, policymakers, and regulators to align financial strategies with ethical sustainability frameworks, fostering resilient banking systems that serve both present and future generations.</p> Graphical abstract <p></p>

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Nexus of green banking and CSR towards sustainability in banking sectors for future generations

  • Mohammad Abul Kalam Azad,
  • Hafizah Abdul Rahim,
  • Abu Abdullah Al Mamun,
  • Wan Nordin Wan-Hussin,
  • Mohammed Mizanur Rahman,
  • Md.Mominur Rahman

摘要

The banking sector plays a critical role in shaping sustainable economic development and upholding ethical responsibility toward future generations, particularly in emerging economies. This study investigates the nexus between green banking initiatives, corporate social responsibility (CSR), and financial performance metrics in influencing sustainable share performance of banks in Bangladesh from 2014 to 2023. Using balanced panel data from 19 commercial banks and employing Panel-Corrected Standard Errors (PCSE), the analysis highlights how sustainability-oriented banking practices translate into both ethical and financial outcomes. The results reveal that green banking positively and significantly enhances sustainable share performance, reflecting growing investor trust in environmentally responsible practices. Financial indicators such as earnings per share (EPS) and price-to-earnings (PE) ratios also positively impact sustainability performance, while sponsor shareholding reinforces institutional stability. In contrast, CSR expenditures show a negative effect, indicating that some philanthropic practices may not yet be strategically aligned with long-term sustainability or intergenerational equity goals. Control variables such as bank size and liquidity were found to be non-significant. This study advances the discourse on sustainable finance by demonstrating how the integration of green banking and CSR practices can embody moral responsibility and intergenerational justice. It offers actionable insights for bank managers, policymakers, and regulators to align financial strategies with ethical sustainability frameworks, fostering resilient banking systems that serve both present and future generations.

Graphical abstract