ARTICLE
TITLE

Does Sustainable Banking Disclosure Affect Bank Efficiency? Evidence from Indonesia 10.18196/jai.v22i2.11349

SUMMARY

Research aims: In Indonesia, there are regulatory developments that require companies to implement a sustainable manner in business activities. Based on Financial Service Authority Regulation no. 51/2017 regarding sustainable finance, Bank BUKU 3 and 4 are the first parties required to run and publish a sustainability report. Therefore it is essential to evaluate the performance of a bank implementing sustainable banking. This study aims to examine sustainable banking disclosure on bank efficiency in Indonesia.Design/Methodology/Approach: We used 70 observations of banks listed on the Indonesian stock exchange from 2015 to 2019. The method for testing bank efficiency uses Data Envelopment Analysis (DEA). In the second stage of the analysis, researchers used a panel data regression method.Research findings: First, the results show that commercial banks BUKU 3, 4 in Indonesia are still inefficient. Second, the article also found that sustainable banking disclosure has a positive effect on bank efficiency.Theoretical contribution/Originality: This study's results constitute empirical evidence related to stakeholder theory and provide empirical evidence regarding the effect of sustainable banking on bank efficiency.Practitioner/Policy implication: This research contributes to bank management to implement sustainable banking because it can increase bank efficiency.

 Articles related

Lilik Handajani, Akram Akram, Ahmad Rifai    

This research aims to examine the impact of sustainable banking practices and bank characteristics on bank performance. Structural equation models were used to analyze 11 banks listed on the Indonesia Stock Exchange that published sustainability reports ... see more


Alexandra ZBUCHEA,Monica BIRA    

Museums are increasingly more connected to the concerns of the present-day society. In order to be actively involved in the development of the society and well-being of their communities, museums are more connected than ever, are active partners for thei... see more


Katarzyna Cheba, Iwona Dorota Bak    

One of the most common errors in research on sustainable development is to analyse a set of features describing this development within one set of diagnostic features. Such an approach does not allow for examining the real changes taking place within eac... see more


????? ?????????? ???????????, ????????? ?????????? ?????????, ??????? ????????    

??????: ????? ?????????? ??????????? ??? ??? iivashkovskaja@hse.ru????????? ?????????? ????????? ??? ?????????? ???????? ??? ???In this research the analysis of the impact of corporate financial architecture on company’s performance is conducted for... see more


Lesya Petkova,?ichael Ryabokon,Yuriy Vdovychenko    

Information and communication theories became a major driver of the economic development of countries in a global world. Information component plays a key role in the building of competitive potential of countries and the development of international rel... see more