Does environmental reporting of banks affect their financial performance? Evidence from India

Abstract

Purpose The present study aims to investigate the effect of environmental reporting on the financial performance of banks in India. Design/methodology/approach The study is based on the secondary data. The sample includes the banks listed in the NSE Nifty Bank Index from 2016–2017 to 2020–2021. The environmental reporting data was obtained through the content analysis technique. The financial data was collected from the CMIE Prowess database. Panel regression analysis was used to analyse the data. Findings The findings indicate a negative significant influence of environmental reporting on the ROA and ROE of banks. On the other hand, environmental reporting does not significantly influence the EPS of banking institutions. Originality/value To the best of the authors’ knowledge, this study is the first to contribute to the scarce literature on the influence of environmental reporting on financial performance, pertinently in the context of a developing nation's banking sector.