Abstract
This study undertakes a critical examination of the influence of sustainability performance on firms’ access to capital and allocation of capital towards green innovation within the banking sector in Bangladesh, integrating resource-based view framework. Using a panel dataset from 2014 to 2021, comprising 7,639 firm-year observations, this research establishes a statistically significant and robust association between firm sustainability performance and both the ease of capital access and the allocation of capital towards green innovation. This association is mediated by factors such as reduced perceived risk, enhanced transparency, and increased investor confidence. Notably, private banks, leveraging their enhanced digital capabilities, outperform state-owned banks in sustainability performance. Further, the firm-level moderating factors, corporate governance, tech proficiency of the board, gender diversity in both firm and board composition, as well as firm size and age, each exhibits a statistically meaningful interactive effect on the dimensional tie. Moreover, the study examines the intersecting influences of Islamic and foreign commercial banks on sustainability performance- capital access tie, emphasizing the heterogeneity within these dynamics. The findings are adjusted for endogeneity through instrumental variable analysis, thereby establishing a causal inference linking sustainability performance to the ease of capital access.
Presenters
Md Yousuf AliPhD Researcher, Accounting and Financial Management, University of Reading, Reading, United Kingdom
Details
Presentation Type
Paper Presentation in a Themed Session
Theme
KEYWORDS
Sustainability Performance, Capital Access, Green Innovation, Resource-Based View, Corporate Governance
