Green Banking Practices, Social, Health and Environmental Disclosures and Bank Financial Performance: The Role of Innovations and Corporate Governance

Adu, Douglas A, Mangena, Musa, Adegbite, Emmanuel, and Boateng, Frank (2026) Green Banking Practices, Social, Health and Environmental Disclosures and Bank Financial Performance: The Role of Innovations and Corporate Governance. Business Strategy and the Environment, 35 (3). pp. 4035-4056.

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DOI: 10.1002/bse.70328

View at Publisher Website: https://doi.org/10.1002/bse.70328

Abstract

Regulators in the banking industry in the Sub-Saharan Africa (SSA) region are progressively concentrating on corporate innovation and bank social, health and environmental disclosures (BSHED) as crucial corporate governance (CG) structures to improve bank financial performance (BFP). Nonetheless, it is unclear whether corporate innovation and BSHED can lead to an improvement in BFP. Understanding these crucial relationships can help regulators and banking practitioners to design and implement sustainable strategies that can enhance BFP. This paper seeks to bridge this gap by investigating the effects of corporate innovation and BSHED on BFP and examining whether CG mechanisms moderate these relationships. Through the lens of multi-theoretical perspectives, the study conducts fixed effects and dynamic two-step system generalised method of moments models over a dataset of 2785 observations (220 banks) from 16 SSA countries between 2007 and 2022. The findings show that corporate innovation has a positive effect on BSHED and BFP. The study detects that corporate innovation has a positive association with BFP. We find that BSHED is positively related to BFP. The study identifies and tests possible moderators of these associations. We observe that CG mechanisms positively moderate these relationships. Finally, we establish that the predicted associations vary across different operating periods. The findings help stakeholders including corporate boards, executives and regulators to understand how innovation investments and internal governance structures such as CG mechanisms are associated with BSHED and BFP.


Item ID:	91892
Item Type:	Article (Research - C1)
ISSN:	1099-0836
Keywords:	bank financial performance, corporate governance, corporate innovation, green banking, health and environmental initiatives, social
Copyright Information:	© 2025 The Author(s). Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
Date Deposited:	07 Aug 2026 04:18
FoR Codes:	35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3507 Strategy, management and organisational behaviour > 350702 Corporate social responsibility @ 50% 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3507 Strategy, management and organisational behaviour > 350701 Corporate governance @ 25% 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3507 Strategy, management and organisational behaviour > 350705 Innovation management @ 25%
SEO Codes:	19 ENVIRONMENTAL POLICY, CLIMATE CHANGE AND NATURAL HAZARDS > 1902 Environmental policy, legislation and standards > 190205 Environmental protection frameworks (incl. economic incentives) @ 50% 13 CULTURE AND SOCIETY > 1303 Ethics > 130303 Environmental ethics @ 50%
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