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  • SUSTAINABILITY PAPER Sept 6 2019 MGT_AT_clean

    Rights statement: This is the peer reviewed version of the following article:Tan, Y, Tsionas, MG. Modelling sustainability efficiency in banking. Int J Fin Econ. 2022; 27: 3754– 3772. doi: 10.1002/ijfe.2349 which has been published in final form at https://onlinelibrary.wiley.com/doi/10.1002/ijfe.2349 This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.

    Accepted author manuscript, 857 KB, PDF document

    Embargo ends: 30/11/22

    Available under license: CC BY-NC-ND: Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License

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Modelling sustainability efficiency in banking

Research output: Contribution to Journal/MagazineJournal articlepeer-review

Published
<mark>Journal publication date</mark>31/07/2022
<mark>Journal</mark>International Journal of Finance and Economics
Issue number3
Volume27
Number of pages19
Pages (from-to)3754-3772
Publication StatusPublished
Early online date30/11/20
<mark>Original language</mark>English

Abstract

We significantly contribute to the empirical literature by investigating sustainability efficiency in the banking industry and decompose it into internal sustainability and external sustainability in an explicit manner. We fill in the gap of the literature by considering internal sustainability from two perspectives which are banking stability and economic performance. We also extend the current studies by including both banks' social contributions (contributions to the society and the company development) and environmental responsibility to the estimation of external sustainability. Finally, we fill in the gap of the literature by estimating the determinants of bank sustainability efficiency. The findings from the output distance function and the panel vector autoregressive model show that the sustainability efficiency level in the Chinese banking industry (2007–2017) ranges from 0.45 to 0.75 (maximum sustainability efficiency score is 1 and minimum sustainability efficiency score is 0). There is a larger difference in terms of external sustainability efficiency in the sample, while stability is still one of the most serious issues, as reflected by the low stability efficiency score compared to other efficiency concepts. The results also show that internal sustainability efficiency is significantly affected by the firm specific determinants, business environment determinants and economic environment determinants.

Bibliographic note

This is the peer reviewed version of the following article:Tan, Y, Tsionas, MG. Modelling sustainability efficiency in banking. Int J Fin Econ. 2022; 27: 3754– 3772. doi: 10.1002/ijfe.2349 which has been published in final form at https://onlinelibrary.wiley.com/doi/10.1002/ijfe.2349 This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.