"DOES GREEN ACCOUNTING PRACTICE AFFECT BANK PERFORMANCE? A STUDY ON LISTED BANKS OF DHAKA STOCK EXCHANGE IN BANGLADESH"

Abstract

Green accounting practices have been getting growing attention from academicians, scholars, and practitioners. As one of the fastest-growing developing nations, Bangladesh is also concerned about the ecological challenges and their potential impacts on different sectors' overall performance. This studyintends to examine the effects of green accounting practices on bank performance. The study deploys a panel dataset of 30 (All banks) banks from DSE listed Bangladeshi banksthroughout 2009-2020. This study employed 2SLS (Two-Stage Least Square) to discover the influence of green accounting practices with three green thoughts from Bangladesh Bank's guidelines, including green investment, green initiatives, and green activity management. The results indicate that green investment is highly significant to increase bank performance. The green initiatives and green activity management are also substantial to influence bank performance. The study also reveals that the better the green accounting practices, the higher the banks' performance. We also investigate the robustness of the main findings through alternative estimation methods, pooled OLS (Ordinary Least Square), and Two-step System GMM (Generalized Methods of Moment) estimations and find similar results. This study is novel because of employing different proxies for green accounting practices and methodological contributions. Thus, as complementary to Bangladesh Bank's initiatives on environmental accounting practices, the findings generated from this study have managerial implications for policymakers in corporations and the government.