Figure - available via license: CC BY
Content may be subject to copyright.
Source publication
Researchers in developed countries argue that banks should be free to decide about their sustainability initiatives without the interference from regulators. However, researchers in developing countries tend to think differently. This study aimed to focus on this argument by examining the linkage between sustainability and financial performance (SF...
Context in source publication
Similar publications
Crediting in the banking sector plays an important role in all developed and developing countries. For this reason, it is monitored continuously by public authorities and measures are taken to control credit supply in economic growth periods. On the other hand, in an economic slowdown, when banks are reluctant to increase their credit portfolio, pu...
The bank contributes to ensuring sustainable economic growth in each inch of the country. The banking sector in Bangladesh consists of a diverse array of banks, including state-owned, foreign, and private commercial banks. Private Commercial Banks are privately owned, profit-driven entities catering to various economic segments. This paper is built...
This study examines the impact of the emotional and instrumental
support of coworkers and supervisors with respect to the work-life
balance of banks’ female staffs. Primary data were obtained a
through a questionnaire survey administered to female
commercial bank employees in Bangladesh (N = 558). Drawing on
the Conservation of Resource (COR) theor...
This paper provides rather scares evidence on the nexus between bank competition and economic growth in a unique developing economy; Sri Lanka for the period 1996-2018. The effect of competition in the Sri Lankan banking sector on economic growth, and the mechanisms through which competition affects growth are analyzed in the present paper. The VEC...
In this competitive era, it has become prerequisite for the banking service providing financial firms to understand and meet the customers' needs and demands to remain competitive in today's competitive market environment. Without satisfying the customers, banking business cannot stand alone. To satisfy customers, it is often recommended to provide...
Citations
... Attention to ESG is not only conducted by companies. In recent years, the financial sector has also played a role in reducing socio-environmental and governance problems and promoting robust green financing processes, although the intensity of ESG integration into the financial sector varies between regions and countries (Ahmed et al., 2019). ...
This article presents a study using Leximancer (a text mining tool to visualize themes and concepts in text) to find any themes that still have a great opportunity to be studied further related to ESG. This study used the Scopus database and gathered 159 published articles from 2011 to 2020. The articles were selected based on the analysis of the abstract, the theory used, including the development of hypothesis (if any), and conclusions. Based on the main themes generated by Leximancer software, overall, the ‘social’ theme was the most dominant, while themes such as ‘investor’ and ‘sustainability’ were less dominant. This review reveals that the themes and concepts resulting from Leximancer’s content analysis have not been widely studied in the previous literature. Our study continues the previous literature review with a different scope and method. Leximancer offers a larger list of potentially useful keywords for further analysis and provides a visually appealing display of themes and concepts and their level of importance. The results of this review could be used as a basis for providing academic guidance in future ESG research. Keywords: Leximancer, ESG, ESG themes, ESG concepts.
... Furthermore, the study found that banks in countries with higher economic freedom tended to focus more on ESG, while this tendency was weak among banks in developing countries, particularly during financial crises, which reduced banks' focus on ESG. Ahmed et al. (2019) examined the contribution of the implementation of regulatory policy guidelines related to sustainability initiatives to financial performance. The study used data from 30 private commercial banks in Bangladesh, comparing the period between 2012 and 2018. ...
The purpose of this study is to evaluate the impact of Environmental, Social
and Governance (ESG) risk ratings on the financial performance of selected
banks in the Borsa Istanbul (BIST) Banking Sector Index based on 2023
by using LODECI and CRADIS hybrid Multi-Criteria Decision Making
(MCDM) model. The LODECI method, used for criterion weighting in
the study, is a technique that objectively determines the importance levels of
criteria while integrating the perspectives of two fundamental approaches;
Entropy and MEREC methods. It also creates acceptable and robust weight
vectors. The performance rankings of the companies are determined using
the CRADIS method, which constructs utility functions based on ideal and
anti-ideal values. In determining the financial performance rankings of the
banks included in the analysis, a scoring is first conducted based on financial
ratios and ESG risk ratings, and then the scores are recalculated excluding
ESG risk ratings from the analysis. The scores calculated for both cases are
compared, and it has been determined that including ESG risk ratings in
the analysis causes differences in performance scores and rankings. In the
performance ranking conducted with ESG risk ratings included, GARAN,
AKBNK, and YKBNK are in the top three, while HALKB, VAKBN, and QNBFB are in the bottom three. In the performance ranking conducted
with ESG risk ratings excluded, GARAN, SKBNK, and AKBNK are in the
top three, while HALKB, VAKBN, and ISCTR are in the bottom three.
Considering the scores and rankings of the CRADIS method, it has been
observed that, in general, banks with lower ESG risk ratings have higher
financial performance rankings, while those with higher ESG risk ratings
have lower rankings. These results provide significant evidence regarding the
impact of ESG risks on the Turkish banking system. The motivation behind
this research stems from the very limited studies on the effect of ESG risk on
the performance of banks listed on BIST, and it is believed that this research
makes a valuable contribution to the literature in this field.
... Ahmed et al. (2019) stated that policy guidelines have a positive impact on bank sustainability, but political interference can affect financial performance. This study is relevant for understanding policy effects in developing countries.Kumar and Prakash (2019) show that banks in India are active in community development and financial literacy programs, but environmental disclosures are still limited.Sholikah and Miranti (2021) highlight the importance of the ratio of return on assets, liquid assets to total assets, and DTA in assessing the financial health of banks in Indonesia. ...
Economic development that only focuses on growth often has negative impacts, encouraging the emergence of the concept of sustainable development that balances economic, environmental, and social aspects. This concept, supported by the United Nations and various parties, is the basis for sustainable development goals until 2030, covering human, social economic, and environmental development. Sustainability, introduced in 1987, integrates environmental, social, and economic aspects or the triple bottom line in business standards and practices. The development of sustainable banking is still in its infancy, with some banks starting to adopt environmental and social policies. This research examines risk policies to support sustainable development in commercial banking through an analysis of 50 articles. The results show that economic and social efficiency, stability, and environmental contribution are important in assessing bank sustainability. Internal factors such as risk management and financial health, as well as external factors such as regulations and macroeconomic conditions are very influential.
... However, this does not necessarily improve financial performance, even over time. The complexity of isolating additional influences makes this difficult to study (Ahmed et al., 2019). A different study finds a positive correlation between ESG reporting and bank profitability. ...
Business stakeholders are becoming more involved in environmental, social, and governance (ESG) aspects. There is an increasing awareness in the financial services industry of the importance of incorporating ESG factors into strategies, processes, and financial tools to generate value over the medium and long run. While a vast body of literature examines the connection between ESG factors and company performance, only a few studies have specifically investigated the financial services industry, often employing linear models. This research specifically examines the ESG performance of the financial services industry. It utilizes a life-cycle framework to analyze the patterns and relationships of European companies in the sector. This analysis is conducted using linear panel regression models. The study's conclusions serve as crucial benchmarks for investment managers and policymakers. The findings illustrate that superior, enhanced ESG performance can bolster the financial success of industry participants.
... Other studies examine the relation between ESG factors and corporate financial performance by relating environmental, social, and governance evaluations to financial performance (Ahmed et al., 2019;Chouaibi et al., 2021). For example, the study by La Torre et al. (2021) considers European banks listed in the STOXX Europe 600 between 2008 and 2019 and verifies the relationship between ESG Performance and CFP considering simultaneously different dimensions of financial performance; the results show a positive and statistically significant relationship between the ESG Performance and Value-Based Measurements and no ties with accounted-based performance. ...
Our paper explores whether social crowdfunding triggers the success of social projects by focusing on the role of the Italian platform Meridonare. By examining 140 projects between 2016 and 2018, our study analyzes how the platform acts in facilitating the interaction between non-profit organizations and private investors willing to participate in the financing of social projects. Our results support the relevant role a social crowdfunding platform has on the success of a campaign. The involvement of the population through actions that leverage the human-touch relationship, and the social nature of the project increases the propensity to achieve the funding objectives.
... At the same time, the govt. has set the target of real GDP growth at 8.2% for FY2021, considering that the pandemic will evade soon and the economy will regain the pace adopting a V-shaped trend (Parvez Ahmed et al., 2019). This provide a quite hopeful insight that post pandemic remittance revenue will surely emancipate the economy from its shackles and contribute effectively in ensuring a stable growth in the succeeding periods. ...
... Rate of Inflationa degrading trend, Bangladesh Bank anticipates the rate to grow as per expectation in the succeeding periods (ParvezAhmed et al., 2019). The rate of inflation is expected to grow as a result of a number of components. ...
Ratanpur Steel Re-rolling Mills Limited (RSRM) is a shining company in steel industry of
Bangladesh, who started their operation from 1984. The mill of this company is situated in Baizid Bostami Industrial area of Chittagong. Over the years, the company is trying to meet huge demand of steel in Bangladesh. The vision of this company to be a trend setter and a power force in steel
industry of Bangladesh. To achieve its vision, the company is taking lots of plans and projects in each year. For this we used Top to Bottom approach for equity valuation. We firstly, analyze the macroeconomic situation of Bangladesh over some years, and then tried to project the economic future condition. Accordingly, we tried to analyze and forecast the industry situation also. After that, we did company analysis with a short overview, ratios and value chain of the company. Then we tried to forecast company’s pro forma income statements and balance sheets of next five years. Then we did the valuation using four different methods (Free Cash Flow to Frim, Dividend Discounting Model, Residual Income Valuation Model, and Market Multiple Based Valuation Model). Besides, we did a sensitivity analysis for each of the valuation. And lastly, we took the investment decision of this company based on our valuations.
... Though ERM has been introduced in 2011, only a few banks in Bangladesh even adopted green banking guidelines at this time [16]. However, Ahmed and Ahmed [17], for instance, found that the sustainability performance of Bangladeshi banks has increased since then. Nevertheless, they did not find a correlation between their environmental and financial performance. ...
The purpose of this study is to analyze the connection between the sustainability performance and financial performance of Bangladeshi banks to explore the impact of the Bangladesh Environmental Risk Management Guideline. We analyzed all 56 scheduled commercial banks that are currently operating in Bangladesh under the guidelines of the Central Bank of Bangladesh. Data for the sample has been collected from publicly available reports such as annual, sustainability, and corporate social responsibility (CSR) reports, disclosed sustainability and financial information on the banks’ websites, including all bank branches, and data published from the Central Bank. Data has been analyzed using panel regression. Our results indicate that higher sustainability performance creates a higher financial performance, and that bigger banks perform better with regard to sustainability than smaller banks. The analysis did not find, however, that higher financial performance influences the sustainability performance of the banks positively. Consequently, this research contributes to the research on legitimacy-driven behavior of Bangladeshi banks. This behavior rather leads to a reactive adoption of sustainability activities instead of proactive behavior.
A company's economic activities must be organized in such a way as to take into account how they will affect society, the environment and corporate governance (ESG) standards. The paper analyzes the current stage of the implementation of ESG practices within BRD Groupe Société Générale Romania, a company in the financial-banking field. The research was qualitative and consisted in the evaluation of environmental, social and governance factors by calculating a total score regarding ESG performance in fulfilling the SDGs. The findings show that there is an increasing ESG commitment in large Romanian companies, but there are still aspects that require significant improvements. The BRD company obtained a score of 44, and the most significant contribution to the achievement of the SDGs is related to the environmental pillar. The results obtained may be of interest to governments, businesses and civil society, depending on the role within the organization.
ÖZ Finansal sistemin temel aktörlerinden olan bankaların sergilediği performans, banka paydaşlarının alacağı kararlarda kullanılan temel göstergelerdendir. Paydaşlar günümüzde finansal bilgiler kadar çevresel, sosyal ve yönetişim (ESG) gibi konuları kapsayan bilgilerin de kendilerine sunulmasını talep etmektedir. Bu konuda artan talep performans değerlendirmede, finansal kriterlerle birlikte finansal olmayan kriterlerin de dikkate alınması gereğini ortaya çıkarmıştır. Buradan hareketle bu çalışmada çevresel, sosyal ve yönetişim gibi finansal olmayan kriterlerin bankaların performansları üzerindeki etkisini tespit etmek amaçlanmıştır. Bu amaç kapsamında araştırma sorusu “Bankaların performans analizine ESG değerlerinin dahil edilmesi performans sıralamasını etkiler mi?” olarak belirlenmiştir. Çalışmada Türkiye’de faaliyette bulunan ve ESG puanlarına ulaşılabilen altı mevduat bankasının performansı CAMELS yöntemine göre analiz edilmiştir. Yapılan analizde performans kriteri olarak CAMELS bileşenlerinin yanı sıra bankaların ESG puan bileşenleri de kullanılmıştır. Performans kriteri olarak kullanılan bileşenlerin analizdeki ağırlıkları entropi yöntemine göre belirlenmiştir. Analize dahil edilen bankaların performans başarı sırası belirlenirken önce CAMELS bileşen değerlerine göre bir puanlama yapılmış ve ardından ESG bileşen değerleri de analize dahil edilerek puanlar tekrar hesaplanmıştır. Her iki durum için hesaplanan puanlar karşılaştırılmış ve ESG bileşenlerinin analize dahil edilmesinin her ne kadar puanlarda farklılıklar ortaya çıkarsa da performans sırasında fark yaratmadığı tespit edilmiştir.
The heterogeneity of ESG rating outcomes, due to different methodologies adopted by ESG rating providers and an unclear distinction between ratings, scores, and opinions, leads to multidimensionality of information. This study aims to analyse the state of the art of the scientific literature on ESG ratings, scores, and opinions. The analysis was conducted using both bibliometric and systematic reviews of the literature, using data visualisation techniques. Our main research question is: what are the main trends analysed in the literature on ESG ratings, scores, and opinions? Our initial hypothesis is that the existing literature tends to focus on specific issues and leaves other areas of inquiry uncovered, e.g., by not drawing appropriate distinctions in terms of methodologies, definitions, and relationships to ESG risks, while also placing less focus on the specific implications of the ESG topic for banks and financial intermediaries. Our results indicate, first, a lack of clear demarcation between the different methodologies and definitions used to assign ESG ratings and scores; implications relate to disclosure profiles and investors’ use of information. Secondly, our analysis shows that—although ESG issues play an essential and growing role in the financial sector—there are still rather few studies that explicitly focus on the effects of ESG profiles from a purely banking and finance perspective.
