What drives green banking disclosure? An institutional and corporate governance perspective

Abstract

We examine the influence of regulatory guidance and other factors on the green banking disclosure practices of Bangladeshi commercial banks in the period from 2007 to 2014. We find that the issuance of green banking regulatory guidance by the Central Bank of Bangladesh in 2011 positively influences the level of green banking disclosure. We also report that green banking disclosure practices in the banking sector have converged over time and have become a routine process. In addition, we find that corporate governance mechanisms (e.g., board size and institutional ownership) positively affect the level of green banking disclosure. However, our study finds no relationship between the presence of independent directors on the board and green banking disclosure. These results have important implications for the government and other policy-makers.