Economics at your fingertips  

Does sustainability make banks more cost efficient?

Lien-Wen Liang, Hai-Yen Chang and Hao-Ling Shao

Global Finance Journal, 2018, vol. 38, issue C, 13-23

Abstract: The Dow Jones Sustainability Index (DJSI) was the world's first index to track corporate sustainability. We compared 36 banks listed on the DJSI with 36 non-DJSI banks in 15 countries from 2006 to 2015, using stochastic frontier analysis (SFA) and the stochastic metafrontier approach (SMF) and measuring the technology gap ratio (TGR) and metafrontier cost efficiency (MCE). Our results indicate that DJSI banks have higher cost efficiency than non-DJSI banks, although DJSI banks experienced greater fluctuation during the 2008 financial crisis. DJSI banks also outperform non-DJSI banks in TGR and MCE.

Keywords: Corporate social responsibility; Banking efficiency; Stochastic metafrontier approach (search for similar items in EconPapers)
JEL-codes: C33 G21 M14 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Global Finance Journal is currently edited by Manuchehr Shahrokhi

More articles in Global Finance Journal from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-04-27
Handle: RePEc:eee:glofin:v:38:y:2018:i:c:p:13-23