Title: Environmental commitment for green finance and sustainable performance in commercial banks of ASEAN countries - whether stakeholder pressure has a moderating role

Authors: Hien Vo Van; Malik Abu Afifa

Addresses: Tien Giang University, 119 Ap Bac Street, My Tho City, Tien Giang 84000, Vietnam ' Department of Accounting, Faculty of Business, Al-Zaytoonah University of Jordan, Amman 11733, Jordan

Abstract: The purpose of this study is to investigate the relationships between environmental commitment, green finance implementation, and sustainable performance in ASEAN commercial banks. Simultaneously, stakeholder pressure is examined as a moderating factor on these relationships. The data from the cross-country survey of 101 senior managers were analysed using partial least squares-structural equation modelling (PLS-SEM). The study's findings demonstrated that environmental commitment positively influenced both green finance implementation and sustainable performance. Furthermore, green finance implementation had a positive and significant impact on sustainable performance. It was also intriguing to see that none of these relationships were moderated by stakeholder pressure. These findings are essential evidence for ASEAN governments, central banks, and commercial banks in establishing the motivation for green finance and sustainable performance. Finally, the study proposes recommendations for strengthening the application of green financing in ASEAN commercial banks.

Keywords: ASEAN; commercial bank; environmental commitment; green finance; stakeholder pressure; sustainable performance; SDGs; legitimacy theory; resource-based view; RBV; stakeholder theory.

DOI: 10.1504/IJSE.2024.139502

International Journal of Sustainable Economy, 2024 Vol.16 No.3, pp.304 - 331

Received: 11 Sep 2022
Accepted: 21 Nov 2022
Published online: 03 Jul 2024 *

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