Abstract
The study intended to explore the effect of environmental accounting reporting (EAR) practices on the financial performance of the banking industry of Bangladesh. Panel data consisting of 25 listed banks in Dhaka Stock Exchange (DSE) over the period 2012 to 2016 has been employed in this study. An environmental accounting reporting score (EARS) index has been developed by analyzing the content of banks' annual reports. Using Pooled OLS, the analysis revealed that EAR reporting had been increased after publishing the Bangladesh bank guideline. The empirical analysis showed that a significant positive correlation between EAR and profit margin (PM). However, EAR has an insignificant relationship with ROAE (return on average equity), EPS (earnings per share), and ROAA (return on average assets). Among control variables, size, capital ratio, overhead expense, and loan ratio have a significant impact on financial performance.
Highlights
Global warming gets international consideration as it has been steered by rapid use of natural resources and brutal industrial competition due to globalization
This study has been performed to figure out the effect of environmental accounting reporting (EAR) practices on the financial performance of the banking industries of Bangladesh
The results of this analysis indicate that there is a significant correlation between profit margin and environmental accounting reporting practices on the annual report
Summary
Global warming gets international consideration as it has been steered by rapid use of natural resources and brutal industrial competition due to globalization (see UNEPFI, 2007; Guillen, 2001). Greenhouse gas (GHG) is the main culprit for changing the balance of the natural environment (World Bank, 2013). Manufacturing institutions are blamed primarily for environmental change, greenhouse gas, service organizations, such as banks and other financial institutions, contribute as they fund the major industry of any country (Hossain et al 2016). Be affected by accounting measures rather than sustainable development. This issue is still on the debate as researchers found different results (Dobre et al, 2015)
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