Exploring the association of green banking disclosure and corporate sustainable growth: the moderating role of firm size and firm age

Abstract

AbstractThis study examines the impact of green banking disclosure on firms’ sustainable growth. The methodology used is panel data analysis with a sample of 45 banks in Indonesia, a total of 578 observations from 2004 to 2021, listed on the Indonesia Stock Exchange. Data are taken from annual reports, financial reports, corporate sustainability reports, and government publications. The results show that GBDI has a negative effect on SGR, suggesting that green banking disclosures, although necessary, require resource allocation that could potentially reduce the firm’s growth capacity. This study also analyzed the moderating variables of firm size (FSIZE) and firm age (FAGE) to determine their effect on the relationship between GBDI and SGR. However, the results show that neither FSIZE nor FAGE significantly strengthen this relationship. However, FAGE strengthens the relationship between GBDI and SGR for state-owned banks. This study adds novelty to the research by highlighting the importance of understanding how sustainability disclosure affects firm growth, especially in green banking.

Keywords

• Green banking disclosure
• corporate sustainable growth
• firm size
• firm age
• G21
• M41