The Impact of Environmental Strategy, Digital Transformation, and Shareholder Pressure on Green Banking Disclosure: A Moderating Effect of Top Management Commitment

Abstract

This study aims to examine how shareholder pressure, digital transformation, and environmental strategy affect green banking disclosure, and how top management commitment moderates these effects. In this quantitative study, 44 banks that were listed between 2020 and 2023 on the Indonesia Stock Exchange were examined using panel data. The tests were carried out using a random effect model. The findings indicated that green banking disclosure is positively impacted by environmental strategy, while shareholder pressure and digital transformation have a negative effect. The relationship between digital transformation and green banking disclosure can be significantly strengthened with strong senior leadership support, which can also lessen the impact of the business's environmental plan. The addition of new dimensions to the green banking disclosure indicators increases the study model's validity. The research's practical consequences include the necessity of more stringent regulations to promote the adoption of environmental strategies and digital transformation combined with green disclosures, as well as a greater role for senior management in environmental sustainability. This research contributes by expanding the green banking disclosure indicators for the financial sector in Indonesia.