Abstract
This study examines the factors influencing the sustainable reporting practices of commercial banks, focusing on green loan disclosures. Employing balanced panel data from 26 banks over 12 years (2012–2023), the binary logistic regression method is used to analyze sustainability disclosure practices, with validation provided by the system’s generalized method of moments estimation to address potential endogeneity. The findings reveal that a bank's asset size positively influences green lending disclosures, while the market value ratio and non-performing assets exert a negative impact. These results suggest that larger banks with lower market valuations and higher levels of bad loans are more inclined to disclose their green lending activities. The study enriches sustainability reporting literature by identifying key drivers of green lending disclosures in India, offering valuable insights for policymakers and stakeholders. It also provides a novel contribution to the under-explored area of green loan disclosures, particularly in the context of developing countries. By focusing on the Indian banking industry, the study fills a critical gap in the existing body of knowledge and sheds light on the disclosure practices related to green loans.
Published Version
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