Sustainability Performance of State-owned and Private Banks Amid the COVID-19 Pandemic
Abstract
The COVID-19 pandemic has compelled companies worldwide to explore their corporate responsibility toward the environment and society and achieve the global sustainability goals. Some are pessimistic, while others predict that companies will increase their sustainability disclosures amid the pandemic. Using panel data regression of nine banks listed on the Indonesia Stock Exchange, the authors found a significant increase in sustainability disclosure during the pandemic. The increase occurred in total and in every dimension of sustainability (economic, environmental, and social). In addition, they found that state-owned banks disclosed more than private banks during the research period.
Keywords: disclosure, sustainability, pandemic, state-owned banks
References
[1] Uyar A, Kuzey C, Kilic M. Testing the spillover effects of sustainability reporting: Evidence from the public sector. International Journal of Public Administration; 2021;44(3):231–240. https://doi.org/10.1080/01900692.2019.1677711
[2] S. Imperatives. Report of the world commission on environment and development: Our common future. United Nations (UN); 1987;10:1-300.
[3] Matuszak L, Różańska E, Macuda M. The impact of corporate governance characteristics on banks’ corporate social responsibility disclosure. Journal of Accounting in Emerging Economies. 2019;9(1):75-102.
[4] Bae SM, Masud M, Kaium A, Kim JD. A cross-country investigation of corporate governance and corporate sustainability disclosure: A signaling theory perspective. Sustainability. 2018;10(8):1-16
[5] Goodell JW. COVID-19 and finance: Agendas for future research. Finance Research Letters. 2020;35;1-5
[6] Kirk CP, Rifkin LS. I’ll trade you diamonds for toilet paper: Consumer reacting, coping and adapting behaviors in the COVID-19 pandemic. Journal of Business Research. 2020;117:124–131.
[7] Crovini C, Schaper S, Simoni L. Dynamic accountability and the role of risk reporting during a global pandemic. Accounting, Auditing & Accountability Journal. 2021.
[8] Folger-Laronde Z, Pashang S, Feor L, ElAlfy A. ESG ratings and financial performance of exchange-traded funds during the COVID-19 pandemic. Journal of Sustainable Finance & Investment; 2020:12(2);1-7.
[9] Adams CA, Abhayawansa S. Connecting the COVID-19 pandemic, environmental, social and governance (ESG) investing and calls for ‘harmonisation’ of sustainability reporting. Critical Perspectives on Accounting; 2021:82(1);102309;1-13.
[10] García-Sánchez IM, García-Sánchez A. Corporate social responsibility during COVID19 pandemic. Journal of Open Innovation: Technology, Market, and Complexity. 2020;6(4):126;1-21
[11] Obrenovic B, Du J, Godinic D, Tsoy D, Khan MAS, Jakhongirov I. Sustaining enterprise operations and productivity during the COVID-19 pandemic: “Enterprise Effectiveness and Sustainability Model”. Sustainability. 2020;12(15):5981;1-27;
[12] Nicolo G, Zanellato G, Tiron-Tudor A. Integrated reporting and European stateowned enterprises: A disclosure analysis pre and post 2014/95/EU. Sustainability 2020;12(5):1908;1-17.
[13] Kao EH, Yeh C-C, Wang L-H, Fung HG. The relationship between CSR and performance: Evidence in China. Pacific-Basin Finance Journal; 2019;51:155–170.
[14] Boros A, Fogarassy C. Relationship between corporate sustainability and compliance with state-owned enterprises in Central-Europe: A case study from Hungary. Sustainability. 2019;11(20):5653;1-23.
[15] Hoque N, Mowla M, Uddin MS, Mamun A, Uddin MR. Green banking practices in Bangladesh: A critical investigation. International Journal of Economics and Finance. 2019;11:58-68.
[16] Orazalin N. Corporate governance and corporate social responsibility (CSR) disclosure in an emerging economy: Evidence from commercial banks of Kazakhstan. Corporate Governance. 2019;19(3):490-507.