Green Banking Disclosure, Financial Performance, and Profitability: Evidence from Indonesian Bank

Sugeng Riadi, Erika Anggrayni

2023

Abstract

This research is aimed at determining the impact of various factors-namely, green banking disclosure (as indicated by the green coin rating indicator), net interest margin, non-performing loans, operating costs, and operational income the profitability of state-owned banks in Indonesia over an eight-year period (2014–2021), as gauged by the return on assets. Secondary data, derived from annual reports and sustainability reports available on the official websites of state-owned banks (Mandiri Bank, BNI Bank, BRI Bank, and BTN Bank), constitute the basis of this study. The analytical process involves testing the data with classical assumptions to ensure its suitability for statistical testing. The data is then subjected to multiple linear regression analysis, followed by hypothesis testing, which involves partial and coefficient determination tests. The statistical evidence shows that green banking disclosure does not have any noticeable impact on profitability. Profitability is positively impacted by net interest margin and non-performing loans, while operating costs and operational income show a negative correlation.

Paper Citation

in Harvard Style

Riadi S. and Anggrayni E. (2023). Green Banking Disclosure, Financial Performance, and Profitability: Evidence from Indonesian Bank. In Proceedings of the 2nd Maritime, Economics and Business International Conference - Volume 1: MEBIC; ISBN 978-989-758-704-7, SciTePress, pages 128-135. DOI: 10.5220/0012646700003798

in Bibtex Style

@conference{mebic23,
author={Sugeng Riadi and Erika Anggrayni},
title={Green Banking Disclosure, Financial Performance, and Profitability: Evidence from Indonesian Bank},
booktitle={Proceedings of the 2nd Maritime, Economics and Business International Conference - Volume 1: MEBIC},
year={2023},
pages={128-135},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0012646700003798},
isbn={978-989-758-704-7},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd Maritime, Economics and Business International Conference - Volume 1: MEBIC
TI - Green Banking Disclosure, Financial Performance, and Profitability: Evidence from Indonesian Bank
SN - 978-989-758-704-7
AU - Riadi S.
AU - Anggrayni E.
PY - 2023
SP - 128
EP - 135
DO - 10.5220/0012646700003798
PB - SciTePress