Green Banking : One Effort To Achieve The Principle Of Good Corporate Governance (GCG)
25 May 2015-pp 128-132
TL;DR: The term green, eco has been used in various fields with the term green and eco-friendly as discussed by the authors and one of them is environmental damage that occurs in most of the Earth causing environmental movement nowadays.
Abstract: Environmental damage that occurs in most of the Earth causing environmental movement nowadays in various fields with the term green, eco. One of them is in
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24 Oct 2020
TL;DR: In this article, the implementation of green banking and financial performance to profitability of banks in Indonesia period 2016-2019 were analyzed using multiple regression analysis, and the results indicated that green banking policy had a significant positive effect on profitability, capital adequacy had no significant negative effect on the profitability, non-performing loans did not have a significant negative impact on profitability and the level of bank liquidity had not significant positive influence on profitability.
Abstract: Green banking adalah aktivitas operasional perbankan yang ramah lingkungan. Penelitian ini menganalisis penerapan green banking, dan kinerja keuangan terhadap profitabilitas bank di Indonesia periode 2016-2019. Sampel penelitian menggunakan metode purposive sampling dan di peroleh 9 bank yang sesuai kriteria. Pengujian data menggunakan analisis regresi berganda. Hasil penelitian menunjukkan bahwa kebijakan green banking berpengaruh positif signifikan terhadap profitabilitas, kecukupan modal tidak berpengaruh negatif signifikan terhadap profitabilitas, kredit bermasalah tidak berpengaruh negatif signifikan terhadap profitabilitas, efisiensi bank berpengaruh negatif signifikan terhadap profitabilitas, tingkat likuiditas bank tidak berpengaruh positif signifikan terhadap profitabilitas.
Green banking is an environmentally friendly banking operational activity. This study analyzes the implementation of green banking and financial performance to profitability of banks in Indonesia period 2016-2019. The research sample used purposive sampling method and obtained 9 banks that match the criteria. Testing data using multiple regression analysis. The results of this study indicate that green banking policy had a significant positive effect on profitability, capital adequacy had no significant negative effect on profitability, non-performing loans had no significant negative effect on profitability, bank efficiency had a significant negative effect on profitability, the level of bank liquidity had no significant positive effect on profitability.
3 citations
TL;DR: In this article , the authors examined the determinants of the bankers' green banking usage behavior during COVID-19 and found that the mediating role of management support, environmental sustainability, cognitive efforts and subjective norms on green-banking usage behavior through attitudes was significant.
Abstract: Purpose Green banking, an ethical banking concept, concentrates on environmental protection and encourages social and environmental sustainability, perceived cognitive efforts, and subjective norms ensuring ecologically responsive banking services. Consequently, although there have been considerable green banking attempts in Bangladesh, it is yet unknown how environmental sustainability, perceived cognitive effort, and subjective norms affect usage behavior. The present research aims to uncover this gap, extending the Theory of Reasoned Action (TRA) to examine the determinants of the bankers’ green banking usage behavior during COVID-19. Methods Data were collected from 366 bankers in Bangladesh using a purposive sampling technique and analyzed with structural equation modeling (SEM) using SMART PLS 3 software. Findings The study found management support (0.291, t-statistics = 1.978, p 0.000), environmental sustainability (β = 0.278, t-statistics = 2.752, p < 0.001), perceived cognitive efforts (β = 0.401, t-statistics = 3.549, p < 0.000), and subjective norms (β = 0.309, t-statistics = 4.352, p < 0.000) influence bankers’ attitudes. Whereas environmental sustainability (β = 0.503, t-statistics = 3.726, p < 0.001), perceived cognitive efforts (β = 0.103, t-statistics = 2.020, p < 0.002), subjective norms (β = 0.281, t-statistics = 4.607, p < 0.000), and attitudes (= 0.602, t-statistics = 5.523, p 0.015) influence bankers’ green banking usage behavior. Finally, the mediating role of management supports, environmental sustainability, cognitive efforts and subjective norms on green banking usage behavior through attitudes was significant. Contribution/Conclusion The study contributed to existing literature validating the proposed holistic framework applying TRA and three contemporary dimensions explaining bankers’ behavior toward green banking practice. Finally, the implementers should focus on green banking practices as green banking is one of the key strategies to protect the environment, assure social justice, and create economic success.
3 citations
TL;DR: In this paper , the authors conducted studies that are supported by secondary research data published in many book journals and other website documents, concluding to obtain valid and up-to-date data findings.
Abstract: Indonesia is a country that is very committed to the implementation of good corporate governance in every organization and business. To that end, we have conducted studies that are supported by secondary research data published in many book journals and other website documents. The purpose of this study is to analyze the data critically by involving data evaluation and coding, concluding to obtain valid and up-to-date data findings. This type of research is qualitative. This research approach uses a phenomenological approach. The data collection method uses documentation analysis. The technique used to analyze the data is descriptive qualitative analysis. The results of the research are good corporate governance used in guarantee institutions for each, which is a decision and management of a company that adheres to the principles to be purchased, high transparency, responsibility, high self-management, fairness and sustainability. In this case, the purpose of the application is to create for all parties in business activities so that the business runs well, accountable and profitable in an economic context.
TL;DR: In this article , a study was conducted to determine how transparency and accountability affected the Islamic banking sector's long-term viability, and the study was guided by three theories: agency theory, stewardship theory, and stakeholder theory.
Abstract: Corporate governance exists to increase and maintain shareholder value. On this basis, corporate governance is argued to be vital to any company's long-term viability. To determine how transparency and accountability affected the Islamic banking sector's long-term viability. The study was guided by three theories: agency theory, stewardship theory, and stakeholder theory. This study is quantitative. It is used in quantitative research to generate numerical data or data that can be transformed into statistics. Transparency, accountability, justice, and responsibility are all important factors in the study's findings. Transparency and accountability appear to have a significant impact on the banking industry's long-term viability. To achieve sustainability, Islamic banks in Indonesia should strictly enforce transparency in all operations and worker activities.
References
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TL;DR: In this article, a large-scale literature review and use conceptual theory building to introduce the concept of sustainability to the field of supply chain management and demonstrate the relationships among environmental, social, and economic performance within a supply chain context.
Abstract: Purpose – The authors perform a large‐scale literature review and use conceptual theory building to introduce the concept of sustainability to the field of supply chain management and demonstrate the relationships among environmental, social, and economic performance within a supply chain management context.Design/methodology/approach – Conceptual theory building is used to develop a framework and propositions representing a middle theory of sustainable supply chain management (SSCM).Findings – The authors introduce the concept of sustainability – the integration of environmental, social, and economic criteria that allow an organization to achieve long‐term economic viability – to the logistics literature, and position sustainability within the broader rubric of SSCM. They then present a framework of SSCM and develop research propositions based on resource dependence theory, transaction cost economics, population ecology, and the resource‐based view of the firm. The authors conclude by discussing manageri...
3,093 citations
TL;DR: Klapper and Love as discussed by the authors provide a study of firm-level corporate governance practices across emerging markets and a greater understanding of the environments under which corporate governance matters more, showing that better corporate governance is highly correlated with better operating performance and market valuation.
Abstract: Recent research studying the link between law and finance has concentrated on country-level investor protection measures and focused on differences in legal systems across countries and legal families. Klapper and Love extend this literature and provide a study of firm-level corporate governance practices across emerging markets and a greater understanding of the environments under which corporate governance matters more. Their empirical tests show that better corporate governance is highly correlated with better operating performance and market valuation. More important, the authors provide evidence showing that firm-level corporate governance provisions matter more in countries with weak legal environments. These results suggest that firms can partially compensate for ineffective laws and enforcement by establishing good corporate governance and providing credible investor protection. The authors' tests also show that firm-level governance and performance is lower in countries with weak legal environments, suggesting that improving the legal system should remain a priority for policymakers. This paper - a product of Finance, Development Research Group - is part of a larger effort in the group to study corporate governance around the world.
1,130 citations
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TL;DR: In this paper, the authors argue that commercial banks pose unique corporate governance problems for managers and regulators, as well as for claimants on the banks' cash flows, such as investors and depositors.
Abstract: The study argues that commercial banks pose unique corporate governance problems for managers and regulators, as well as for claimants on the banks' cash flows, such as investors and depositors The authors support the general principle that fiduciary duties should be owed exclusively to shareholders However, in the special case of banks, they contend that the scope of the fiduciary duties and obligations of officers and directors should be broadened to include creditors In particular, the authors call on bank directors to take solvency risk explicitly and systematically into account when making decisions or else face personal liability for failure to do so
802 citations
TL;DR: The financial community has a history of placing moral considerations above legal or opportunistic expedients as mentioned in this paper. But we are often exposed to moral dangers and the dangers of contamination are increasing.
Abstract: Companies do have ethical responsibility and are not protected by limited liability from the consequences of their actions. A company's record and the preception of its ethics affect its reputation and ensure long term success or failure. The financial community has a history of placing moral considerations above legal or opportunistic expedients. But we are often exposed to moral dangers and the dangers of contamination are increasing. Deregulation and the technological revolution are sharpening ethical conflicts. Bankers' role is one of stewardship based on trust. We are trusted by those who ask us to look after their money and we have a duty to lend that money responsibly. Banking is about rewards reflecting real risks and ethical considerations form an important part of our risk-taking activities. The welfare of our borrowing customers, in good times and bad, is of major concern in any business proposition. Sometimes commercial considerations can be at odds where ethics and politics combine, for example, on the LDC debt question. We depend on people to run our business and to reflect our ethical standards. We have to let our people know what is expected of them and help them to avoid pressures and temptations. A bank's responsibility extends to Government, customers, shareholders, staff and the community. In the future, as we face increasingly complex and conflicting issues, our resolve and commitment to ethical behaviour will be tested.
95 citations