A TRILOGY OF GREEN BANKING DISCLOSURE, BOARD INDEPENDENCE AND TOBINSQ: THE SAARC REGION PERSPECTIVE.

Abstract

In response to global warming and climate change related issues, central banks all over the world specifically from SAARC countries have been issuing green banking guidelines. Stakeholders have soaring concerns regarding environmental disclosure information. Yet, due to unavailability of data and appropriate methodologies, it is difficult to know that to what extent words have been translated into actions. To fill the existing literary gap, this research investigates that to what extent interactive impact of green banking disclosure and board independence have influence on market based performance of selected banks overall in selected SAARC countries and more specifically in India and Bangladesh. Therefore, data set ranging from year 2010-2019 is tested through dynamic panel data estimation method system GMM step one. Interestingly, findings of the study indicate that green banking information disclosure is low in the mentioned region and number of independent directors are not ample enough to exert significant positive interactive impact on tobinsQ of selected banks. Due to both incomplete, insufficient green banking disclosure and unavailability of fairly recruited independent directors, management remain restrict to perform positively therefore market based performance of selected banks is compromised. It seems that investment in green banking policy implication is considered costly, hence mandatory green banking guidelines are considered voluntary. For policy implications, more market and legitimate pressure is required.