The effect of environmental disclosure on stock return of Islamic and conventional banks
Purpose – We examine the effects of environmental, social, and governance (ESG) disclosure and green building policies on the stock returns of Islamic and conventional banks. Methodology – Data were obtained from 17 Islamic banks and 17 conventional banks from eight countries (Arab Saudi Arabia, U...
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| Format: | Article |
| Language: | English |
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Center for Islamic Economics Studies and Development
2025-01-01
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| Series: | Jurnal Ekonomi dan Keuangan Islam |
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| Online Access: | https://journal.uii.ac.id/JEKI/article/view/36905 |
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| author | Mega Ayu Widayanti Sulistya Rusgianto Hesti Eka Setianingsih Zurina Kefeli |
| author_facet | Mega Ayu Widayanti Sulistya Rusgianto Hesti Eka Setianingsih Zurina Kefeli |
| author_sort | Mega Ayu Widayanti |
| collection | DOAJ |
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Purpose – We examine the effects of environmental, social, and governance (ESG) disclosure and green building policies on the stock returns of Islamic and conventional banks.
Methodology – Data were obtained from 17 Islamic banks and 17 conventional banks from eight countries (Arab Saudi Arabia, UAE, Qatar, Kuwait, Malaysia, Indonesia, Pakistan, and Bahrain) over seven years from 2017 to 2023. We conducted panel least squares with fixed effects (dummy variables) for cross-sections using EViews to process the data.
Findings – The estimated results show that the green building policy variable is statistically significant to the stock return of Islamic banks, while the environmental, social, and governance variables are not. Meanwhile, the social dimension is statistically significant for the stock returns of conventional banks, but environmental, governance, and green buildings are not.
Implications – Investors and policymakers should consider the implementation of ESG and green building policies to contribute on sustainability issues and gain financial return.
Originality – This study tests non-financial performance, such as ESG disclosure and green building policy, on the stock returns of Islamic and conventional banks, which has not been extensively studied by the existing literature.
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| format | Article |
| id | doaj-art-7ef6131b8e6849a18b740fd8e4d50311 |
| institution | Kabale University |
| issn | 2088-9968 2614-6908 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | Center for Islamic Economics Studies and Development |
| record_format | Article |
| series | Jurnal Ekonomi dan Keuangan Islam |
| spelling | doaj-art-7ef6131b8e6849a18b740fd8e4d503112025-01-24T08:56:26ZengCenter for Islamic Economics Studies and DevelopmentJurnal Ekonomi dan Keuangan Islam2088-99682614-69082025-01-0111110.20885/JEKI.vol11.iss1.art4The effect of environmental disclosure on stock return of Islamic and conventional banksMega Ayu Widayanti0Sulistya Rusgianto1Hesti Eka Setianingsih2Zurina Kefeli3Department of Islamic Economics, Faculty of Economics and Business, Universitas Airlangga, Surabaya, IndonesiaDepartment of Islamic Economics, Faculty of Economics and Business, Universitas Airlangga, Surabaya, IndonesiaDepartment of Islamic Economics, Faculty of Economics and Business, Universitas Airlangga, Surabaya, IndonesiaFaculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Nilai, Negeri Sembilan, Malaysia Purpose – We examine the effects of environmental, social, and governance (ESG) disclosure and green building policies on the stock returns of Islamic and conventional banks. Methodology – Data were obtained from 17 Islamic banks and 17 conventional banks from eight countries (Arab Saudi Arabia, UAE, Qatar, Kuwait, Malaysia, Indonesia, Pakistan, and Bahrain) over seven years from 2017 to 2023. We conducted panel least squares with fixed effects (dummy variables) for cross-sections using EViews to process the data. Findings – The estimated results show that the green building policy variable is statistically significant to the stock return of Islamic banks, while the environmental, social, and governance variables are not. Meanwhile, the social dimension is statistically significant for the stock returns of conventional banks, but environmental, governance, and green buildings are not. Implications – Investors and policymakers should consider the implementation of ESG and green building policies to contribute on sustainability issues and gain financial return. Originality – This study tests non-financial performance, such as ESG disclosure and green building policy, on the stock returns of Islamic and conventional banks, which has not been extensively studied by the existing literature. https://journal.uii.ac.id/JEKI/article/view/36905ESG disclosuregreen building policystock returnIslamic banksconventional banks |
| spellingShingle | Mega Ayu Widayanti Sulistya Rusgianto Hesti Eka Setianingsih Zurina Kefeli The effect of environmental disclosure on stock return of Islamic and conventional banks Jurnal Ekonomi dan Keuangan Islam ESG disclosure green building policy stock return Islamic banks conventional banks |
| title | The effect of environmental disclosure on stock return of Islamic and conventional banks |
| title_full | The effect of environmental disclosure on stock return of Islamic and conventional banks |
| title_fullStr | The effect of environmental disclosure on stock return of Islamic and conventional banks |
| title_full_unstemmed | The effect of environmental disclosure on stock return of Islamic and conventional banks |
| title_short | The effect of environmental disclosure on stock return of Islamic and conventional banks |
| title_sort | effect of environmental disclosure on stock return of islamic and conventional banks |
| topic | ESG disclosure green building policy stock return Islamic banks conventional banks |
| url | https://journal.uii.ac.id/JEKI/article/view/36905 |
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