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The impact of environmental disclosure and controversies on bank value

Author

Listed:
  • Galletta, Simona
  • Goodell, John W.
  • Mazzù, Sebastiano
  • Paltrinieri, Andrea

Abstract

We investigate the effect of green investment communication on the relationship between environmental controversies and bank value. Using a dataset of listed banks from 45 countries for 2012–2021, the main results show a positive moderating effect of green disclosure on banks’ controversial value relationship. The moderating effect is greater for banks with the highest number of environmental controversies. These results are also confirmed when addressing endogeneity bias with the generalised method of moments. Our evidence provides new insights for regulators to check the actual green behaviour of banks that are most exposed to environmental controversies. The results highlight the need for policymakers to take proactive measures to develop and strengthen governance that can enhance bank value by taking into account the needs and interests of different stakeholders and local communities.

Suggested Citation

  • Galletta, Simona & Goodell, John W. & Mazzù, Sebastiano & Paltrinieri, Andrea, 2025. "The impact of environmental disclosure and controversies on bank value," Journal of Economics and Business, Elsevier, vol. 134.
    • Handle: RePEc:eee:jebusi:v:134-135:y:2025:i::s0148619524000638
    DOI: 10.1016/j.jeconbus.2024.106221
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    More about this item

    Keywords

    Banks; Environmental investments; Performance; Disclosure;
    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
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment

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