Main Article Content
Abstract
Purpose – We examine the effects of environmental, social, and governance (ESG) disclosure and green building policies on the stock returns of Islamic and conventional banks.
Methodology – Data were obtained from 17 Islamic banks and 17 conventional banks from eight countries (Arab Saudi Arabia, UAE, Qatar, Kuwait, Malaysia, Indonesia, Pakistan, and Bahrain) over seven years from 2017 to 2023. We conducted panel least squares with fixed effects (dummy variables) for cross-sections using EViews to process the data.
Findings – The estimated results show that the green building policy variable is statistically significant to the stock return of Islamic banks, while the environmental, social, and governance variables are not. Meanwhile, the social dimension is statistically significant for the stock returns of conventional banks, but environmental, governance, and green buildings are not.
Implications – Investors and policymakers should consider the implementation of ESG and green building policies to contribute on sustainability issues and gain financial return.
Originality – This study tests non-financial performance, such as ESG disclosure and green building policy, on the stock returns of Islamic and conventional banks, which has not been extensively studied by the existing literature.
Keywords
Article Details
Copyright (c) 2025 Mega Ayu Widayanti, Sulistya Rusgianto, Hesti Eka Setianingsih, Zurina Kefeli
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
References
- Abdelaziz, F. Ben, Chibane, M., & Kuhanathan, A. (2024). Can corporate social performance mitigate the risk of extreme stock returns? The Quarterly Review of Economics and Finance, 98, 101917. https://doi.org/10.1016/j.qref.2024.101917
- Abdo, A., & Fisher, G. (2007). The impact of reported corporate governance disclosure on the financial performance of companies listed on the JSE. Investment Analysts Journal, 36(66), 43–56. https://doi.org/10.1080/10293523.2007.11082492
- Ahmed, S. U., Abdullah, M., & Ahmed, S. P. (2017). Linkage between corporate social performance and stock return: an evidence from financial sector of Bangladesh. The Journal of Developing Areas, 51(2), 287–299. https://www.jstor.org/stable/26415739
- Albaity, M., Noman, A. H. M., & Mallek, R. S. (2021). Trustworthiness, good governance and risk taking in MENA countries. Borsa Istanbul Review, 21(4), 359–374. https://doi.org/10.1016/j.bir.2020.12.002
- Alessi, L., Ossola, E., & Panzica, R. (2020). The greenium matters: greenhouse gas emissions, environmental disclosures, and stock prices. Publications Office of the European Union, Luxembourg, April. http://repec.dems.unimib.it/repec/pdf/mibwpaper418.pdf
- Allison, P. D. (1999). Multiple regression: A primer. Pine Forge Press.
- Almonifi, Y. S. A., & Bhosle, V. K. (2023). Impact of banking performance indicators on share price of Islamic banks listed on GCC stock exchanges. Jurnal Ekonomi & Keuangan Islam. https://doi.org/10.20885/JEKI.vol9.iss2.art8
- Andersson, M., Gärling, T., Hedesström, M., & Biel, A. (2012). Effects on stock investments of information about short versus long price series. Review of Behavioural Finance, 4(2), 81–97. https://doi.org/10.1108/19405971211284871
- Aribi, Z. A., & Gao, S. (2010). Corporate social responsibility disclosure: A comparison between Islamic and conventional financial institutions. Journal of Financial Reporting and Accounting, 8(2), 72–91. https://doi.org/10.1108/19852511011088352
- Aspiranti, T., Ali, Q., Sudrajad, O. Y., & Rusgianto, S. (2023). Shariah governance reporting of Islamic banks: An insight from Malaysia. Cogent Business & Management, 10(2), 2247220. https://doi.org/10.1080/23311975.2023.2247220
- Azhgaliyeva, D., & Rahut, D. B. (2022). Promoting green buildings: barriers, solutions, and policies. ADBI Working Papers. https://doi.org/10.56506/CVYC4388
- Berger, A. N., & Bouwman, C. H. S. (2013). How does capital affect bank performance during financial crises? Journal of Financial Economics, 109(1), 146–176. https://doi.org/10.1016/j.jfineco.2013.02.008
- Bessec, M., & Fouquau, J. (2020). Green sentiment in financial markets: A global warning. Proceedings of Paris December 2020 Finance Meeting EUROFIDAI-ESSEC, Université Paris-Dauphine Research Paper, 3710489. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3710489
- Bhat, G. (2013). Impact of disclosure and corporate governance on the association between fair value gains and losses and stock returns in the commercial banking industry. SSRN Electronic Journal. https://dx.doi.org/10.2139/ssrn.1013926
- Bottazzi, L., Da Rin, M., & Hellmann, T. (2016). The importance of trust for investment: Evidence from venture capital. The Review of Financial Studies, 29(9), 2283–2318. https://doi.org/10.1093/rfs/hhw023
- Boujelbène Abbes, M. (2012). Risk and return of Islamic and conventional indices. International Journal of Euro-Mediterranean Studies, 5, 1–23. https://doi.org/10.1007/s40321-012-0001-9
- Cajias, M., & Piazolo, D. (2013). Green performs better: energy efficiency and financial return on buildings. Journal of Corporate Real Estate, 15(1), 53–72. https://doi.org/10.1108/JCRE-12-2012-0031
- Campbell, D., & Slack, R. (2011). Environmental disclosure and environmental risk: Sceptical attitudes of UK sell-side bank analysts. The British Accounting Review, 43(1), 54–64. https://doi.org/10.1016/j.bar.2010.11.002
- Dobbin, F., & Kalev, A. (2016). Why diversity programs fail. Harvard Business Review, 94(7), 14. https://hbr.org/2016/07/why-diversity-programs-fail
- Dugo, I. (2021). Finance embraces sustainability: An empirical analysis of the financial performances of ETFs investing in sustainable real estate and green building.
- Edwardes-Evans, H. (2021, November 9). COP26: Five developed nations have committed to supporting low-carbon steel and cement sectors. S&P Global. https://www.spglobal.com/commodity-insights/en/news-research/latest-news/energy-transition/110921-cop26-five-developed-nations-commit-to-support-low-carbon-steel-cement-sectors
- Eichholtz, P., Kok, N., & Quigley, J. M. (2010). Doing well by doing good? Green office buildings. American Economic Review, 100(5), 2492–2509. https://doi.org/10.1257/aer.100.5.2492
- Fahlenbrach, R., & Stulz, R. M. (2011). Bank CEO incentives and the credit crisis. Journal of Financial Economics, 99(1), 11–26. https://doi.org/10.1016/j.jfineco.2010.08.010
- Fama, E. F. (1990). Stock returns, expected returns, and real activity. The Journal of Finance, 45(4), 1089–1108. https://doi.org/10.1111/j.1540-6261.1990.tb02428.x
- Fianto, B. A., Nugroho, P. A., Shah, S. A. A., & Busser, R. (2024). Stock market responses to Covid-19: Evidence from Jakarta Islamic Index . Jurnal Ekonomi & Keuangan Islam, 191–199. https://doi.org/10.20885/JEKI.vol10.iss2.art4
- Fintech Global. (2024). Sustainable banking on the rise 73% of banks embrace ESG propositions by 2028. Fintech Global. https://fintech.global/2024/01/03/sustainable-banking-on-the-rise-73-of-banks-embrace-esg-propositions-by-2028/
- Freeman, R., & Mcvea, J. (2001). A stakeholder approach to strategic management. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.263511
- Hassan, M. K. (2003). Cost, profit and X-efficiency of Islamic banks in Pakistan, Iran and Sudan. Islamic Financial Architecture, 497. https://www.researchgate.net/publication/228536878_The_cost_profit_and_x-efficiency_of_Islamic_banks
- Heal, G. (2005). Corporate social responsibility: An economic and financial framework. The Geneva papers on risk and insurance-Issues and practice, 30, 387-409. https://doi.org/10.1057/palgrave.gpp.2510037
- Hengge, M., Panizza, U., & Varghese, R. (2023). Carbon policy surprises and stock returns: Signals from financial markets. SSRN Electronic Journal. https://dx.doi.org/10.2139/ssrn.4343984
- Herremans, I. M., Akathaporn, P., & McInnes, M. (1993). An investigation of corporate social responsibility reputation and economic performance. Accounting, Organizations and Society, 18(7–8), 587–604. https://doi.org/10.1016/0361-3682(93)90044-7
- Hong, H., & Kacperczy, M. (2009). The price of sin: The effects of social norms on markets. Journal of Financial Economics, 93(1), 15–36. https://doi.org/10.1016/j.jfineco.2008.09.001
- Jizi, M., Nehme, R., & Salama, A. (2016). Do social responsibility disclosures show improvements on stock price? The Journal of Developing Areas, 50(2), 77–95. https://doi.org/10.1353/jda.2016.0075
- Kim, R., & Koo, B. (2023). The impact of ESG rating disagreement on corporate value. Journal of Derivatives and Quantitative Studies: 선물연구, 31(3), 219–241. https://doi.org/10.1108/JDQS-01-2023-0001
- Lee, M. T., Raschke, R. L., & Krishen, A. S. (2023). Understanding ESG scores and firm performance: Are high-performing firms E, S, and G-balanced? Technological Forecasting and Social Change, 195, 122779. https://doi.org/10.1016/j.techfore.2023.122779
- LeRoy, S. F., & Singhania, R. (2020). Deposit insurance and the coexistence of commercial and shadow banks. Annals of Finance, 16(2), 159–194. https://doi.org/10.1007/s10436-020-00359-z
- Levi, M., & Newton, D. (2016). Flash of green: are environmentally driven stock returns sustainable? Managerial Finance, 42, 1091–1109. https://doi.org/10.1108/MF-10-2015-0291
- Lui, T. K., Zainuldin, M. H., Wahidudin, A. N., & Foo, C. C. (2021). Corporate social responsibility disclosures (CSRDs) in the banking industry: A study of conventional banks and Islamic banks in Malaysia. International Journal of Bank Marketing, 39(4), 541–570. https://doi.org/10.1108/IJBM-04-2020-0192
- Luo, D. (2022). ESG, liquidity, and stock returns. Journal of International Financial Markets, Institutions and Money, 78, 101526. https://doi.org/10.1016/j.intfin.2022.101526
- Ma, D., Zhai, P., Zhang, D., & Ji, Q. (2024). Excess stock returns and corporate environmental performance in China. Financial Innovation, 10(1), 41. https://doi.org/10.1186/s40854-023-00569-0
- McCammon, A. L. T. (1995). Banking responsibility and liability for the environment: what are banks doing? Environmental Conservation, 22(4), 297–305. https://doi.org/10.1017/S037689290003486X
- McKenzie, G., & Wolfe, S. (2004). The impact of environmental risk on the UK banking sector. Applied Financial Economics, 14(14), 1005–1016. https://doi.org/10.1080/0960310042000261880
- Miah, M. D., & Hasan, R. (2023). Green banking and emission–performance nexus: A comparative study between Islamic and conventional banks in GCC countries. In Environmental Finance and Green Banking (pp. 109–135). Routledge.
- Miralles‐Quirós, M. M., Miralles‐Quirós, J. L., & Redondo‐Hernández, J. (2019). The impact of environmental, social, and governance performance on stock prices: Evidence from the banking industry. Corporate Social Responsibility and Environmental Management, 26(6), 1446–1456. https://doi.org/10.1002/csr.1759
- Muhammad, R., Mangawing, M. A., & Salsabilla, S. (2021). The influence of intellectual capital and corporate governance on financial performance of Islamic banks. Jurnal Ekonomi & Keuangan Islam, 77–91. https://doi.org/10.20885/jeki.vol7.iss1.art6
- Murdiono, A. (2018). The influence of corporate social responsibility (CSR) disclosure towards company stock return moderated by profit. KnE Social Sciences, 3, 457–466. https://doi.org/10.18502/kss.v3i3.1903
- Nasser, M. M., Guo, Y., & Zhu X. (2023). ESG trade-off with risk and return in Chinese energy companies. International Journal of Energy Sector Management. 18 (5), 1109-1126. https://doi.org/10.1108/IJESM-07-2023-002
- Nguyen, M. (2014). Green Buildings, Corporate Social Responsibility, and Stock Market Performance. University Honors Theses. Paper 30. https://doi.org/10.15760/honors.29
- Nobanee, H., & Ellili, N. (2016). Corporate sustainability disclosure in annual reports: Evidence from UAE banks: Islamic versus conventional. Renewable and Sustainable Energy Reviews, 55, 1336–1341. https://doi.org/10.1016/j.rser.2015.07.084
- Panchasara, Dr. B. M., & Bharadia, Ms. H. S. (2013). Corporate governance disclosure practices and firm performance: Evidence from Indian Banks. Paradigm, 17(1–2), 88–98. https://doi.org/10.1177/0971890720130110
- Pedersen, L. H., Fitzgibbons, S., & Pomorski, L. (2021). Responsible investing: The ESG-efficient frontier. Journal of Financial Economics, 142(2), 572–597. https://doi.org/https://doi.org/10.1016/j.jfineco.2020.11.001
- Plantinga, A., Galema, R., & Scholtens, B. (2008). The stocks at stake: Return and risk in socially responsible investment. Journal of Banking & Finance, 32, 2646–2654. https://doi.org/10.1016/j.jbankfin.2008.06.002
- Porter, M., & Van der Linde, C. (1995). Green and competitive: ending the stalemate. Harvard Business Review. https://hbr.org/1995/09/green-and-competitive-ending-the-stalemate
- Qiu, B., Yu, J., & Zhang, K. (2020). Trust and stock price synchronicity: Evidence from China. Journal of Business Ethics, 167, 97–109. https://doi.org/10.1007/s10551-019-04156-1
- Qoyum, A., Sakti, M. R. P., Thaker, H. M. T., & AlHashfi, R. U. (2022). Does the Islamic label indicate good environmental, social, and governance (ESG) performance? Evidence from sharia-compliant firms in Indonesia and Malaysia. Borsa Istanbul Review, 22(2), 306–320. https://doi.org/10.1016/j.bir.2021.06.001
- Reuters, T. (2021). ESG: Fast-emerging challenges for financial institutions-A 2021 special report by Thomson Reuters Regulatory Intelligence. Thomson Reuters https://www.thomsonreuters.com/en-us/posts/wp-content/uploads/sites/20/2021/09/ESG-2021_A4_Final_web.pdf
- Robinson, J., Glean, A., & Moore, W. (2018). How does news impact on the stock prices of green firms in emerging markets? Research in International Business and Finance, 45, 446–453. https://doi.org/10.1016/j.ribaf.2017.07.176
- Shah, S. F., & Albaity, M. (2022). The role of trust, investor sentiment, and uncertainty on bank stock return performance: Evidence from the MENA region. The Journal of Economic Asymmetries, 26, e00260. https://doi.org/10.1016/j.jeca.2022.e00260
- Sunarsih, S. (2020). The effects of Fama-French five factor and momentum factor on Islamic stock portfolio excess return listed in ISSI. Jurnal Ekonomi & Keuangan Islam, 6(2), 119–133. https://doi.org/10.20885/jeki.vol6.iss2.art4
- Tasnia, M., Syed Jafaar Alhabshi, S. M., & Rosman, R. (2023). Corporate social responsibility and Islamic and conventional banks performance: A systematic review and future research agenda. Journal of Sustainable Finance & Investment, 13(4), 1711–1731. https://doi.org/10.1080/20430795.2021.1922063
- Taufiqurrahman, T. (2023). Does board diversity in Islamic banks matter? Jurnal Ekonomi & Keuangan Islam, 9(2), 210–227. https://doi.org/10.20885/JEKI.vol9.iss2.art5
- Taylor, L., & Neff, J. (2022). Sustainable investing and green returns. In Global Climate Finance Workshop Report j Fall 2022. https://global.upenn.edu/sites/default/files/perry-world-house/sustainable-investing-and-green-returns_0.pdf
- Umar, U. A., & Khamidi, M. F. (2012). Green and sustainable development in an islamic perspective. Conference: World Conference on Islamic Thought & Civilization Contemporary Challenges and Realities. https://www.researchgate.net/publication/233996739_GREEN_AND_SUSTAINABLE_DEVELOPMENT_IN_AN_ISLAMIC_PERSPECTIVE
- Wong, J. B., & Zhang, Q. (2022). Stock market reactions to adverse ESG disclosure via media channels. The British Accounting Review, 54(1), 101045. https://doi.org/10.1016/j.bar.2021.101045
References
Abdelaziz, F. Ben, Chibane, M., & Kuhanathan, A. (2024). Can corporate social performance mitigate the risk of extreme stock returns? The Quarterly Review of Economics and Finance, 98, 101917. https://doi.org/10.1016/j.qref.2024.101917
Abdo, A., & Fisher, G. (2007). The impact of reported corporate governance disclosure on the financial performance of companies listed on the JSE. Investment Analysts Journal, 36(66), 43–56. https://doi.org/10.1080/10293523.2007.11082492
Ahmed, S. U., Abdullah, M., & Ahmed, S. P. (2017). Linkage between corporate social performance and stock return: an evidence from financial sector of Bangladesh. The Journal of Developing Areas, 51(2), 287–299. https://www.jstor.org/stable/26415739
Albaity, M., Noman, A. H. M., & Mallek, R. S. (2021). Trustworthiness, good governance and risk taking in MENA countries. Borsa Istanbul Review, 21(4), 359–374. https://doi.org/10.1016/j.bir.2020.12.002
Alessi, L., Ossola, E., & Panzica, R. (2020). The greenium matters: greenhouse gas emissions, environmental disclosures, and stock prices. Publications Office of the European Union, Luxembourg, April. http://repec.dems.unimib.it/repec/pdf/mibwpaper418.pdf
Allison, P. D. (1999). Multiple regression: A primer. Pine Forge Press.
Almonifi, Y. S. A., & Bhosle, V. K. (2023). Impact of banking performance indicators on share price of Islamic banks listed on GCC stock exchanges. Jurnal Ekonomi & Keuangan Islam. https://doi.org/10.20885/JEKI.vol9.iss2.art8
Andersson, M., Gärling, T., Hedesström, M., & Biel, A. (2012). Effects on stock investments of information about short versus long price series. Review of Behavioural Finance, 4(2), 81–97. https://doi.org/10.1108/19405971211284871
Aribi, Z. A., & Gao, S. (2010). Corporate social responsibility disclosure: A comparison between Islamic and conventional financial institutions. Journal of Financial Reporting and Accounting, 8(2), 72–91. https://doi.org/10.1108/19852511011088352
Aspiranti, T., Ali, Q., Sudrajad, O. Y., & Rusgianto, S. (2023). Shariah governance reporting of Islamic banks: An insight from Malaysia. Cogent Business & Management, 10(2), 2247220. https://doi.org/10.1080/23311975.2023.2247220
Azhgaliyeva, D., & Rahut, D. B. (2022). Promoting green buildings: barriers, solutions, and policies. ADBI Working Papers. https://doi.org/10.56506/CVYC4388
Berger, A. N., & Bouwman, C. H. S. (2013). How does capital affect bank performance during financial crises? Journal of Financial Economics, 109(1), 146–176. https://doi.org/10.1016/j.jfineco.2013.02.008
Bessec, M., & Fouquau, J. (2020). Green sentiment in financial markets: A global warning. Proceedings of Paris December 2020 Finance Meeting EUROFIDAI-ESSEC, Université Paris-Dauphine Research Paper, 3710489. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3710489
Bhat, G. (2013). Impact of disclosure and corporate governance on the association between fair value gains and losses and stock returns in the commercial banking industry. SSRN Electronic Journal. https://dx.doi.org/10.2139/ssrn.1013926
Bottazzi, L., Da Rin, M., & Hellmann, T. (2016). The importance of trust for investment: Evidence from venture capital. The Review of Financial Studies, 29(9), 2283–2318. https://doi.org/10.1093/rfs/hhw023
Boujelbène Abbes, M. (2012). Risk and return of Islamic and conventional indices. International Journal of Euro-Mediterranean Studies, 5, 1–23. https://doi.org/10.1007/s40321-012-0001-9
Cajias, M., & Piazolo, D. (2013). Green performs better: energy efficiency and financial return on buildings. Journal of Corporate Real Estate, 15(1), 53–72. https://doi.org/10.1108/JCRE-12-2012-0031
Campbell, D., & Slack, R. (2011). Environmental disclosure and environmental risk: Sceptical attitudes of UK sell-side bank analysts. The British Accounting Review, 43(1), 54–64. https://doi.org/10.1016/j.bar.2010.11.002
Dobbin, F., & Kalev, A. (2016). Why diversity programs fail. Harvard Business Review, 94(7), 14. https://hbr.org/2016/07/why-diversity-programs-fail
Dugo, I. (2021). Finance embraces sustainability: An empirical analysis of the financial performances of ETFs investing in sustainable real estate and green building.
Edwardes-Evans, H. (2021, November 9). COP26: Five developed nations have committed to supporting low-carbon steel and cement sectors. S&P Global. https://www.spglobal.com/commodity-insights/en/news-research/latest-news/energy-transition/110921-cop26-five-developed-nations-commit-to-support-low-carbon-steel-cement-sectors
Eichholtz, P., Kok, N., & Quigley, J. M. (2010). Doing well by doing good? Green office buildings. American Economic Review, 100(5), 2492–2509. https://doi.org/10.1257/aer.100.5.2492
Fahlenbrach, R., & Stulz, R. M. (2011). Bank CEO incentives and the credit crisis. Journal of Financial Economics, 99(1), 11–26. https://doi.org/10.1016/j.jfineco.2010.08.010
Fama, E. F. (1990). Stock returns, expected returns, and real activity. The Journal of Finance, 45(4), 1089–1108. https://doi.org/10.1111/j.1540-6261.1990.tb02428.x
Fianto, B. A., Nugroho, P. A., Shah, S. A. A., & Busser, R. (2024). Stock market responses to Covid-19: Evidence from Jakarta Islamic Index . Jurnal Ekonomi & Keuangan Islam, 191–199. https://doi.org/10.20885/JEKI.vol10.iss2.art4
Fintech Global. (2024). Sustainable banking on the rise 73% of banks embrace ESG propositions by 2028. Fintech Global. https://fintech.global/2024/01/03/sustainable-banking-on-the-rise-73-of-banks-embrace-esg-propositions-by-2028/
Freeman, R., & Mcvea, J. (2001). A stakeholder approach to strategic management. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.263511
Hassan, M. K. (2003). Cost, profit and X-efficiency of Islamic banks in Pakistan, Iran and Sudan. Islamic Financial Architecture, 497. https://www.researchgate.net/publication/228536878_The_cost_profit_and_x-efficiency_of_Islamic_banks
Heal, G. (2005). Corporate social responsibility: An economic and financial framework. The Geneva papers on risk and insurance-Issues and practice, 30, 387-409. https://doi.org/10.1057/palgrave.gpp.2510037
Hengge, M., Panizza, U., & Varghese, R. (2023). Carbon policy surprises and stock returns: Signals from financial markets. SSRN Electronic Journal. https://dx.doi.org/10.2139/ssrn.4343984
Herremans, I. M., Akathaporn, P., & McInnes, M. (1993). An investigation of corporate social responsibility reputation and economic performance. Accounting, Organizations and Society, 18(7–8), 587–604. https://doi.org/10.1016/0361-3682(93)90044-7
Hong, H., & Kacperczy, M. (2009). The price of sin: The effects of social norms on markets. Journal of Financial Economics, 93(1), 15–36. https://doi.org/10.1016/j.jfineco.2008.09.001
Jizi, M., Nehme, R., & Salama, A. (2016). Do social responsibility disclosures show improvements on stock price? The Journal of Developing Areas, 50(2), 77–95. https://doi.org/10.1353/jda.2016.0075
Kim, R., & Koo, B. (2023). The impact of ESG rating disagreement on corporate value. Journal of Derivatives and Quantitative Studies: 선물연구, 31(3), 219–241. https://doi.org/10.1108/JDQS-01-2023-0001
Lee, M. T., Raschke, R. L., & Krishen, A. S. (2023). Understanding ESG scores and firm performance: Are high-performing firms E, S, and G-balanced? Technological Forecasting and Social Change, 195, 122779. https://doi.org/10.1016/j.techfore.2023.122779
LeRoy, S. F., & Singhania, R. (2020). Deposit insurance and the coexistence of commercial and shadow banks. Annals of Finance, 16(2), 159–194. https://doi.org/10.1007/s10436-020-00359-z
Levi, M., & Newton, D. (2016). Flash of green: are environmentally driven stock returns sustainable? Managerial Finance, 42, 1091–1109. https://doi.org/10.1108/MF-10-2015-0291
Lui, T. K., Zainuldin, M. H., Wahidudin, A. N., & Foo, C. C. (2021). Corporate social responsibility disclosures (CSRDs) in the banking industry: A study of conventional banks and Islamic banks in Malaysia. International Journal of Bank Marketing, 39(4), 541–570. https://doi.org/10.1108/IJBM-04-2020-0192
Luo, D. (2022). ESG, liquidity, and stock returns. Journal of International Financial Markets, Institutions and Money, 78, 101526. https://doi.org/10.1016/j.intfin.2022.101526
Ma, D., Zhai, P., Zhang, D., & Ji, Q. (2024). Excess stock returns and corporate environmental performance in China. Financial Innovation, 10(1), 41. https://doi.org/10.1186/s40854-023-00569-0
McCammon, A. L. T. (1995). Banking responsibility and liability for the environment: what are banks doing? Environmental Conservation, 22(4), 297–305. https://doi.org/10.1017/S037689290003486X
McKenzie, G., & Wolfe, S. (2004). The impact of environmental risk on the UK banking sector. Applied Financial Economics, 14(14), 1005–1016. https://doi.org/10.1080/0960310042000261880
Miah, M. D., & Hasan, R. (2023). Green banking and emission–performance nexus: A comparative study between Islamic and conventional banks in GCC countries. In Environmental Finance and Green Banking (pp. 109–135). Routledge.
Miralles‐Quirós, M. M., Miralles‐Quirós, J. L., & Redondo‐Hernández, J. (2019). The impact of environmental, social, and governance performance on stock prices: Evidence from the banking industry. Corporate Social Responsibility and Environmental Management, 26(6), 1446–1456. https://doi.org/10.1002/csr.1759
Muhammad, R., Mangawing, M. A., & Salsabilla, S. (2021). The influence of intellectual capital and corporate governance on financial performance of Islamic banks. Jurnal Ekonomi & Keuangan Islam, 77–91. https://doi.org/10.20885/jeki.vol7.iss1.art6
Murdiono, A. (2018). The influence of corporate social responsibility (CSR) disclosure towards company stock return moderated by profit. KnE Social Sciences, 3, 457–466. https://doi.org/10.18502/kss.v3i3.1903
Nasser, M. M., Guo, Y., & Zhu X. (2023). ESG trade-off with risk and return in Chinese energy companies. International Journal of Energy Sector Management. 18 (5), 1109-1126. https://doi.org/10.1108/IJESM-07-2023-002
Nguyen, M. (2014). Green Buildings, Corporate Social Responsibility, and Stock Market Performance. University Honors Theses. Paper 30. https://doi.org/10.15760/honors.29
Nobanee, H., & Ellili, N. (2016). Corporate sustainability disclosure in annual reports: Evidence from UAE banks: Islamic versus conventional. Renewable and Sustainable Energy Reviews, 55, 1336–1341. https://doi.org/10.1016/j.rser.2015.07.084
Panchasara, Dr. B. M., & Bharadia, Ms. H. S. (2013). Corporate governance disclosure practices and firm performance: Evidence from Indian Banks. Paradigm, 17(1–2), 88–98. https://doi.org/10.1177/0971890720130110
Pedersen, L. H., Fitzgibbons, S., & Pomorski, L. (2021). Responsible investing: The ESG-efficient frontier. Journal of Financial Economics, 142(2), 572–597. https://doi.org/https://doi.org/10.1016/j.jfineco.2020.11.001
Plantinga, A., Galema, R., & Scholtens, B. (2008). The stocks at stake: Return and risk in socially responsible investment. Journal of Banking & Finance, 32, 2646–2654. https://doi.org/10.1016/j.jbankfin.2008.06.002
Porter, M., & Van der Linde, C. (1995). Green and competitive: ending the stalemate. Harvard Business Review. https://hbr.org/1995/09/green-and-competitive-ending-the-stalemate
Qiu, B., Yu, J., & Zhang, K. (2020). Trust and stock price synchronicity: Evidence from China. Journal of Business Ethics, 167, 97–109. https://doi.org/10.1007/s10551-019-04156-1
Qoyum, A., Sakti, M. R. P., Thaker, H. M. T., & AlHashfi, R. U. (2022). Does the Islamic label indicate good environmental, social, and governance (ESG) performance? Evidence from sharia-compliant firms in Indonesia and Malaysia. Borsa Istanbul Review, 22(2), 306–320. https://doi.org/10.1016/j.bir.2021.06.001
Reuters, T. (2021). ESG: Fast-emerging challenges for financial institutions-A 2021 special report by Thomson Reuters Regulatory Intelligence. Thomson Reuters https://www.thomsonreuters.com/en-us/posts/wp-content/uploads/sites/20/2021/09/ESG-2021_A4_Final_web.pdf
Robinson, J., Glean, A., & Moore, W. (2018). How does news impact on the stock prices of green firms in emerging markets? Research in International Business and Finance, 45, 446–453. https://doi.org/10.1016/j.ribaf.2017.07.176
Shah, S. F., & Albaity, M. (2022). The role of trust, investor sentiment, and uncertainty on bank stock return performance: Evidence from the MENA region. The Journal of Economic Asymmetries, 26, e00260. https://doi.org/10.1016/j.jeca.2022.e00260
Sunarsih, S. (2020). The effects of Fama-French five factor and momentum factor on Islamic stock portfolio excess return listed in ISSI. Jurnal Ekonomi & Keuangan Islam, 6(2), 119–133. https://doi.org/10.20885/jeki.vol6.iss2.art4
Tasnia, M., Syed Jafaar Alhabshi, S. M., & Rosman, R. (2023). Corporate social responsibility and Islamic and conventional banks performance: A systematic review and future research agenda. Journal of Sustainable Finance & Investment, 13(4), 1711–1731. https://doi.org/10.1080/20430795.2021.1922063
Taufiqurrahman, T. (2023). Does board diversity in Islamic banks matter? Jurnal Ekonomi & Keuangan Islam, 9(2), 210–227. https://doi.org/10.20885/JEKI.vol9.iss2.art5
Taylor, L., & Neff, J. (2022). Sustainable investing and green returns. In Global Climate Finance Workshop Report j Fall 2022. https://global.upenn.edu/sites/default/files/perry-world-house/sustainable-investing-and-green-returns_0.pdf
Umar, U. A., & Khamidi, M. F. (2012). Green and sustainable development in an islamic perspective. Conference: World Conference on Islamic Thought & Civilization Contemporary Challenges and Realities. https://www.researchgate.net/publication/233996739_GREEN_AND_SUSTAINABLE_DEVELOPMENT_IN_AN_ISLAMIC_PERSPECTIVE
Wong, J. B., & Zhang, Q. (2022). Stock market reactions to adverse ESG disclosure via media channels. The British Accounting Review, 54(1), 101045. https://doi.org/10.1016/j.bar.2021.101045