Environmental reputation and bank liquidity: Evidence from climate transition

Choi, Daewoung; Gam, Yong Kyu; Shin, Hojong

doi:10.1111/jbfa.12669

Cited by 7 publications

(4 citation statements)

References 99 publications

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“…In a recent paper, Choi et al (2023) affirm that a bank's reputation concerning environmental, social and governance (ESG) practices significantly influences bank liquidity in regions sensitive to climate change by demonstrating not also the strong relationship that exists between reputation and performance but also the growing role of sustainability considerations. Similarly, and Galletta and Mazzu' (2023) present evidence showcasing the significance of adopting risk management strategies and banking policies aligned with ESG principles and sustainability frameworks.…”

Section: Cluster 2 (Green Network): Reputational Risk In Financial In...mentioning

confidence: 99%

“…In a recent paper, Choi et al . (2023) affirm that a bank’s reputation concerning environmental, social and governance (ESG) practices significantly influences bank liquidity in regions sensitive to climate change by demonstrating not also the strong relationship that exists between reputation and performance but also the growing role of sustainability considerations.…”

Section: Cluster Analysismentioning

confidence: 99%

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Assessing the evolution of banking reputation literature: a bibliometric analysis

Carè,

Fatima,

Lèvy

2024

IJBM

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PurposeThe concept of banking reputation has gained significant attention due to its relevance in the banking industry. A strong reputation has become crucial for a bank’s success, as it affects trust, credibility and stakeholders' perceptions. However, understanding and managing reputation in the banking sector involves several challenges. This study aims to analyze the field of banking reputation research through bibliometric analysis.Design/methodology/approachIt explores the evolution of research in this area, identifies key journals, articles and authors, examines the main research streams, and identifies research fronts and opportunities for future advancement.FindingsThe findings reveal that banking reputation research has evolved over time, with multiple perspectives and viewpoints. Key journals and authors in the field are identified, and leading research streams are highlighted. The study also uncovers the conceptual and intellectual structure of the research domain, providing insights into the complex and multidimensional nature of banking reputation. Furthermore, the study emphasizes the importance of corporate social responsibility, sustainability practices and gender diversity in shaping a bank’s reputation. These factors play a significant role in attracting and retaining customers, accessing financial markets and securing funding.Research limitations/implicationsThe results contribute to the existing body of knowledge and provide researchers and practitioners with valuable insights for further exploration.Originality/valueThe paper concludes by outlining potential avenues for future research in the field of banking reputation.

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Section: Cluster 2 (Green Network): Reputational Risk In Financial In...mentioning

confidence: 99%

Section: Cluster Analysismentioning

confidence: 99%

Assessing the evolution of banking reputation literature: a bibliometric analysis

Carè,

Fatima,

Lèvy

2024

IJBM

View full text Add to dashboard Cite

show abstract

“…Companies with high liquidity have more resources to improve their environmental performance than those with weak liquidity. Based on the research conducted by (Choi et al, 2023;Farhan, Almaqtari, Hazaea & Al-ahdal, 2023;Farlinno & Bernawati, 2020), it has been determined that there exists a favorable correlation between a company's liquidity and its ability to invest more resources towards sustainability endeavors regarding environmental concerns, social issues, and employee compensation. Therefore, this study postulates the following hypothesis:…”

Section: Liquidity and Environmental Performancementioning

confidence: 99%

“…However, research (Salama, 2005) found profitability does not have a significant effect on environmental performance. Other studies indicate environmental performance is also affected by liquidity (Choi, Gam & Shin, 2023;Earnhart & Lizal, 2006). According to (Acero & Alcalde, 2020), a high degree of liquidity demonstrates how well businesses use their working capital.…”

Section: Introductionmentioning

confidence: 99%

Environmental disclosure analysis of manufacturing companies to realize sustainable green economy

Sunani,

Widodo,

Wijaya

et al. 2024

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Purpose: Environmental sustainability is a critical issue for many countries, including Indonesia, whose economy is heavily reliant on natural resource extraction. Profitability, liquidity, capital structure, and environmental performance are investigated as potential factors of environmental disclosure in the Indonesian context.Design/methodology/approach: Data from a final sample of 235 observations of manufacturing industries were collected and analyzed using a partial least square-structural equation modeling (PLS-SEM).Findings: The findings reveal that profitability, liquidity, capital structure, and environmental performance all have a role in motivating corporations to disclose their environmental responsibilities. This is because environmental disclosure can be utilized to attract new potential investors. As a result, the higher the score for environmental performance, the greater the voluntary effect of environmental disclosure.Research limitations/implications: This research is not devoid of limitations. First, this study is limited to manufacturing firms in Indonesia. Second, this research only uses a single proxy of measurement. Thus, further research might utilize more sample firms from multiple countries or provide a comparative study between firms that adopt sustainability reporting. Hence, the implication might apply to sustainability reporting-adopted countries, and it might apply not only to emerging countries but also to developed countries. Further research is expected to use more measurements of environmental performance and environmental disclosure so that the result is more robust and has more impact. Moreover, utilizing alternative statistical methods can help validate the results of this study and reinforce the relevant theories.Practical implications: This research recommends that businesses should view environmental sustainability as a chance to make a positive impact on a more sustainable world for the "well-being of humans as well as the planet" while also improving their financial performance. Businesses that adopt socially and sustainably responsible business practices are likely to see improvements in their financial performance as well as increased credibility and confidence from important stakeholders.Social Implications: Eco-friendly products desired by consumers can be achieved through the combined influence of financial and environmental performance.Originality/value: The incorporation of an unbiased evaluation carried out by an external organization, together with the transparent distribution of outcomes utilizing a five-color rating scheme (PROPER), provides significant contributions to the current corpus of knowledge.

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Does environmental credit affect bank loans? Evidence from Chinese A‐share listed firms

Yin,

Lin,

et al. 2024

Int. J Fin Econ

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We investigate the effect of government‐initiated enterprise environmental credit ratings on firms' bank loans. While prior research indicates that companies with superior environmental performance tend to secure more bank loans, it is crucial to acknowledge that these performance metrics predominantly rely on voluntary corporate social responsibility or environmental, social, and governance disclosures made by the firms themselves or evaluated by third‐party agencies. Consequently, the evaluation results could be biased due to incomplete information disclosure, methodologies, or systems, raising concerns among scholars about potential “greenwashing” or symbolic environmental actions. In contrast, we employ a dataset comprising 27,388 observations from 2009 to 2021, applying propensity score matching and a time‐varying difference‐in‐difference model to better discern the relationship between firms' environmental credit ratings and their ability to obtain bank loans. Our findings highlight that firms participating in environmental credit evaluation can secure more bank loans compared to non‐participating firms. This effect is especially pronounced in regions with advanced green finance development. Further analysis shows that non‐state‐owned enterprises with excellent or good environmental credit ratings receive more loans, thus mitigating ownership bias in loan distribution. Overall, our results demonstrate that mandatory government environmental credit ratings mitigate information asymmetry by enabling lenders to better understand firms' environmental information.

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Environmental reputation and bank liquidity: Evidence from climate transition

Cited by 7 publications

References 99 publications

Assessing the evolution of banking reputation literature: a bibliometric analysis

Assessing the evolution of banking reputation literature: a bibliometric analysis

Environmental disclosure analysis of manufacturing companies to realize sustainable green economy

Does environmental credit affect bank loans? Evidence from Chinese A‐share listed firms

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