Jan, Amin and Marimuthu, Maran and Pisol, Muhammad and Isa, Mat,(2019), The nexus of sustainability practices and financial performance: From the perspective of Islamic banking. , Journal of Cleaner Production 228 (2019) 703e717, UNSPECIFIED
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Abstract
This paper evaluated the nexus between sustainability practices and financial performance from the
Islamic banking perspective. For the purpose, this study proposed a sustainability measurement
framework for Islamic banking. A decade of sustainability data 2008e2017 was collected from the annual
reports using a weighted content analysis technique. Results of the Generalized Method of Moments
GMM statistical method showed that sustainability practices have a significant positive association with
the financial performance indicators of the Islamic banks indicating management and the shareholders'
perspective. The impact of sustainability practices on the financial performance of the Islamic banks
measured from the market perspective was found insignificant. In-depth analysis revealed that the
market is not interested in banks spending for its environmental and social sustainability except for their
economic sustainability practices. Based on the Islamic financial index created of management, shareholders
and the market financial performance indicators, the results showed that sustainability practices
have a significant positive association with the Islamic financial index as well. The finding generally
implies that improvement in sustainability practices will add financial values to the management,
shareholder and the market financial performance indicators of the Islamic banking industry across the
world. Results of this study are also providing insights to the policymakers of the Islamic banking industry
around the world regarding efficient sustainability management, achieving higher sustainability
ratings, and improving the subsequent financial performance through efficient sustainability practices
Keywords : | Sustainability practices Financial performance Islamic banking Endogeneity, UNSPECIFIED |
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Journal or Publication Title: | Journal of Cleaner Production 228 (2019) 703e717 |
Volume: | 228 |
Number: | UNSPECIFIED |
Item Type: | Article |
Subjects: | Ekonomi Islam |
Depositing User: | Nila Nurjanah |
Date Deposited: | 20 Dec 2019 04:10 |
Last Modified: | 20 Dec 2019 04:10 |
URI: | https://repofeb.undip.ac.id/id/eprint/543 |