Fondazione GRINS
Growing Resilient,
Inclusive and Sustainable
Galleria Ugo Bassi 1, 40121, Bologna, IT
C.F/P.IVA 91451720378
Finanziato dal Piano Nazionale di Ripresa e Resilienza (PNRR), Missione 4 (Infrastruttura e ricerca), Componente 2 (Dalla Ricerca all’Impresa), Investimento 1.3 (Partnership Estese), Tematica 9 (Sostenibilità economica e finanziaria di sistemi e territori).
Open Access
THEMATIC AREAS
RESOURCES
We investigate the effect of green investment communication on the relationship between environmental controversies and bank value. Using a dataset of listed banks from 45 countries for 2012–2021, the main results show a positive moderating effect of green disclosure on banks’ controversial value relationship. The moderating effect is greater for banks with the highest number of environmental controversies. These results are also confirmed when addressing endogeneity bias with the generalised method of moments.
Our evidence provides new insights for regulators to check the actual green behaviour of banks that are most exposed to environmental controversies. The results highlight the need for policymakers to take proactive measures to develop and strengthen governance that can enhance bank value by taking into account the needs and interests of different stakeholders and local communities.
AKNOWLEDGEMENTS
This study was funded by the European Union - NextGenerationEU, in the framework of the GRINS - Growing Resilient, INclusive and Sustainable project (GRINS PE00000018). The views and opinions expressed are solely those of the authors and do not necessarily reflect those of the European Union, nor can the European Union be held responsible for them.
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