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The different dimensions of sustainability and bank performance: Evidence from the EU and the USA

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  • Moufty, Souad
  • Clark, Ephraim
  • Al-Najjar, Basil

Abstract

This paper looks at four different dimensions of sustainability and examines their effects on bank performance in the United States of America and the European Union. Content analysis is applied to a sample of 483 reports to construct a consistent index that reflects the multi-dimensionality of sustainability. Using structural equation modelling path analysis to test the sustainability model, the results reveal a significant positive relationship between the internal social dimensions of sustainability and bank performance while no evidence was found for the relationship between the environmental dimensions of sustainability and bank performance.

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  • Moufty, Souad & Clark, Ephraim & Al-Najjar, Basil, 2021. "The different dimensions of sustainability and bank performance: Evidence from the EU and the USA," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 43(C).
    • Handle: RePEc:eee:jiaata:v:43:y:2021:i:c:s1061951821000069
    DOI: 10.1016/j.intaccaudtax.2021.100381
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    3. Md. Abu Issa Gazi & Md. Nahiduzzaman & Iman Harymawan & Abdullah Al Masud & Bablu Kumar Dhar, 2022. "Impact of COVID-19 on Financial Performance and Profitability of Banking Sector in Special Reference to Private Commercial Banks: Empirical Evidence from Bangladesh," Sustainability, MDPI, vol. 14(10), pages 1-23, May.

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    More about this item

    Keywords

    Banking sector; Corporate social responsibility (CSR); Environmental and social practices; Financial performance; Stakeholders theory; Sustainability; Structural equation modelling path analysis;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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