Impact of corporate sustainability on financial performance: insights from Malaysian green banks

Ying, Rachel Yeow Tze and Ahammed, Shakil and Hosen, Mosharrof and Mohd Thas Thaker, Hassanudin and Taghizadeh- Hesary, Farhad (2025) Impact of corporate sustainability on financial performance: insights from Malaysian green banks. In: Islamic Finance and Sustainability: A Research Companion. Routledge Research Companions in Business and Economics . Routledge, UK, pp. 231-264. ISBN 9781032855431

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Abstract

This chapter investigates the relationship between Corporate Sustainability Practices (CSP) and financial performance in Malaysia’s banking sector. Analyzing data from 14 banks listed on Bursa Malaysia (2017– 2021), they examine the impact of ESG scores and Sustainability Investment (SI) disclosures on financial metrics like ROA, ROE, and Tobin’s Q. Findings reveal a predominantly negative or neutral effect on short- term financial performance, contrary to expectations. However, the study suggests that CSP offers long- term strategic and reputational benefits. The research contributes to understanding CSP’s sector- specific impacts, advocating for its strategic integration to boost resilience and growth in the banking sector.

Item Type:	Book Chapter
Uncontrolled Keywords:	green banking; corporate social responsibility, sustainability
Subjects:	H Social Sciences > HF Commerce H Social Sciences > HG Finance H Social Sciences > HG Finance > HG1501 Banking H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Economics Kulliyyah of Economics and Management Sciences
Depositing User:	Dr Hassanudin Mohd Thas Thaker
Date Deposited:	04 Aug 2025 14:43
Last Modified:	04 Aug 2025 14:43
URI:	http://irep.iium.edu.my/id/eprint/122442

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