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Financial and environmental performances in the banking industry: A non-linear approach

Author

Listed:
  • Issam Laguir

    (Montpellier Business School and Montpellier Research in Management)

  • Rebecca Stekelorum

    (Université de Montpellier)

  • Jamal Elbaz

    (Ecole Supérieure de Technologie (EST) d'Agadir, Ibn Zohr University)

  • Lamia Laguir

    (Université Paris Descartes, Sorbonne Paris Cité)

Abstract

The present paper investigates the impact of corporate financial performance (CFP) on corporate environmental performance (CEP) in the banking industry. Based on the data of French banks from 2008 to 2011, our study reveals that the relationship between CFP and CEP is non-monotonic, thus suggesting that bank CEP increases significantly only after a certain threshold of financial resources is reached. Our study provides unique insights into the CFP-CEP relationship in the banking industry and reveals that adequate financial resources needs to be available in order to foster environmental investment and meet the expectations of a range of stakeholders.

Suggested Citation

  • Issam Laguir & Rebecca Stekelorum & Jamal Elbaz & Lamia Laguir, 2017. "Financial and environmental performances in the banking industry: A non-linear approach," Economics Bulletin, AccessEcon, vol. 37(4), pages 2616-2624.
    • Handle: RePEc:ebl:ecbull:eb-17-00402
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Environmental corporate social responsibility; corporate financial performance; curvilinear CFP–CEP relationship; banks;
    All these keywords.

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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