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Impact of economic, environmental, and corporate social responsibility reporting on financial performance of UAE banks

Author

Listed:
  • Nejla Ould Daoud Ellili

    (Abu Dhabi University)

  • Haitham Nobanee

    (Abu Dhabi University)

Abstract

This study investigates the degree of sustainability disclosure of listed banks in the UAE financial markets and analyzes the effect of sustainability disclosure on banking performance. Sustainability disclosure is examined by considering three dimensions–economic, environmental, and corporate social responsibility–and using content analysis. Dynamic panel regression was used to study the impact of sustainability disclosure on banking performance by differentiating between conventional and Islamic banks. The empirical results show that banks’ levels of sustainability disclosure are low. Moreover, dynamic panel data reveal that sustainability disclosure has a positive and significant impact on bank performance. The results of this study assist the Central Bank of the UAE in developing a corporate sustainability disclosure framework to improve bank transparency, reduce information asymmetry, and improve compliance with sustainability standards.

Suggested Citation

  • Nejla Ould Daoud Ellili & Haitham Nobanee, 2023. "Impact of economic, environmental, and corporate social responsibility reporting on financial performance of UAE banks," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(5), pages 3967-3983, May.
    • Handle: RePEc:spr:endesu:v:25:y:2023:i:5:d:10.1007_s10668-022-02225-6
    DOI: 10.1007/s10668-022-02225-6
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    More about this item

    Keywords

    Corporate sustainability disclosure; Economic disclosure; Environmental disclosure; Corporate social responsibility disclosure; Banking performance;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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