How Green Credit Policies and Climate Change Practices Drive Banking Financial Performance DOI Creative Commons
Yaser Saleh Al Frijat, Jebreel Mohammad Al‐Msiedeen, Ahmed A. Elamer

et al.

Business Strategy & Development, Journal Year: 2025, Volume and Issue: 8(1)

Published: March 1, 2025

ABSTRACT This study examines the influence of green credit policies (GCP) on banking financial performance (FP), emphasizing moderating role climate change practices (CCP). Using a stakeholder theory and legitimacy framework, we explore how initiatives impact key metrics such as return equity (ROE), earnings per share (EPS), Tobin's Q. The utilizes dataset covering 14 Jordanian banks from 2016 to 2023, applying regression models test proposed relationships. Our findings reveal positive significant relationship between GCP FP, indicating that with stronger tend experience enhanced outcomes. Additionally, CCP reinforces this effect, demonstrating environmental transparency fosters resilience long‐term sustainability. Robustness checks confirm validity our results, mitigating concerns regarding reverse causality endogeneity bias. contributes finance literature by providing empirical evidence benefits GCP, particularly in context developing economies. research underscores strategic importance integrating sustainability‐driven into operations achieve both objectives. hold substantial policy implications, advocating for regulatory frameworks promote transparency. For institutions, highlights competitive advantage embedding sustainability corporate strategies, ultimately enhancing market valuation profitability.

Language: Английский

How Green Credit Policies and Climate Change Practices Drive Banking Financial Performance DOI Creative Commons
Yaser Saleh Al Frijat, Jebreel Mohammad Al‐Msiedeen, Ahmed A. Elamer

et al.

Business Strategy & Development, Journal Year: 2025, Volume and Issue: 8(1)

Published: March 1, 2025

ABSTRACT This study examines the influence of green credit policies (GCP) on banking financial performance (FP), emphasizing moderating role climate change practices (CCP). Using a stakeholder theory and legitimacy framework, we explore how initiatives impact key metrics such as return equity (ROE), earnings per share (EPS), Tobin's Q. The utilizes dataset covering 14 Jordanian banks from 2016 to 2023, applying regression models test proposed relationships. Our findings reveal positive significant relationship between GCP FP, indicating that with stronger tend experience enhanced outcomes. Additionally, CCP reinforces this effect, demonstrating environmental transparency fosters resilience long‐term sustainability. Robustness checks confirm validity our results, mitigating concerns regarding reverse causality endogeneity bias. contributes finance literature by providing empirical evidence benefits GCP, particularly in context developing economies. research underscores strategic importance integrating sustainability‐driven into operations achieve both objectives. hold substantial policy implications, advocating for regulatory frameworks promote transparency. For institutions, highlights competitive advantage embedding sustainability corporate strategies, ultimately enhancing market valuation profitability.

Language: Английский

Citations

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