Are Sustainable Banks Efficient and Productive? A Data Envelopment Analysis and the Malmquist Productivity Index Analysis

Akber Aman Shah, Desheng Wu and Vladmir Korotkov
Additional contact information
Akber Aman Shah: School of Economics and Management, University of Chinese Academy of Science, Beijing 100049, China
Vladmir Korotkov: School of Economics and Management, University of Chinese Academy of Science, Beijing 100049, China

Sustainability, 2019, vol. 11, issue 8, 1-19

Abstract: Corporate sustainability is the integration of environmental protection, financial benefit, and social responsibility into management and business operations. There is insufficient evidence for its relationship with operating performance and productivity. Furthermore, it becomes doubtful when investors standardize corporate sustainable strategies. This study evaluates the performance and productivity of sustainable banks, exploring practical issues by providing supporting evidence. A two-stage performance evaluation is employed with the integration of data envelopment analysis (DEA) and Malmquist productivity index (MPI) to evaluate sustainable bank performance and productivity for 9 years (2010–2018) in comparison with non-sustainable banks. DEA is used to define dynamic benchmarking, and MPI builds on time-series analysis. The results of our study reveal that sustainable banks are more efficient and productive. The productivity of sustainable banks and non-sustainable banks was influenced by external and internal factors, respectively.

Keywords: corporate sustainability; sustainable banks; performance evaluation; data envelopment analysis; malmquist productivity index (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
https://www.mdpi.com/2071-1050/11/8/2398/pdf (application/pdf)
https://www.mdpi.com/2071-1050/11/8/2398/ (text/html)

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: https://EconPapers.repec.org/RePEc:gam:jsusta:v:11:y:2019:i:8:p:2398-:d:225088

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().