Sustainable supply chain management operations: does sustainable environmental disclosure matter for banks’ financial performance in Nigeria?

Ding Chen, Umar Muhammad Gummi (), Mustapha Ibrahim and Fatima Alfa Tahir
Additional contact information
Ding Chen: Xi’an Shiyou University
Umar Muhammad Gummi: Sokoto State University
Mustapha Ibrahim: University of Maiduguri
Fatima Alfa Tahir: University of Maiduguri

Palgrave Communications, 2024, vol. 11, issue 1, 1-13

Abstract: Abstract In recent years, banks have incorporated sustainable development strategies to achieve competitiveness in the financial market. However, the primary concern for banks is the financial pressure to implement sustainable environmental practices. In addition, banks are obliged by different regulators to maintain standards in conducting their business and allocating funds. Previous studies examined the relationship between sustainability reporting, corporate social responsibility (CSR), and firms’ financial performance. Few empirical studies examined the impact of sustainable supply chain management (SSCM) operations on firm financial outcomes, yet the banking sector has been ignored in the analyses. To bridge this gap, we examine the dynamic effect of SSCM operations on deposit money banks’ (DMBs) financial performance. We selected seven banks in Nigeria with national, regional and international authorization and data spanning from 2005 to 2023. Based on the panel co-integration test and the Cross-sectional Dependence Autoregressive Distributed Lag model (CS-ARDL) model, we found that SSCM operations have a significant influence on the financial performance (market value and profitability) of the banks. Impliedly, banks’ SSCM operations and environmental consideration in the allocation of funds drive their corporate image and value. Integration of SSCM strategies for a sustainable environment can help enterprises/companies bridge information asymmetry among diverse stakeholders. We offer some policy suggestions in line with the empirical findings.

Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1057/s41599-024-04008-y Abstract (text/html)
Access to full text is restricted to subscribers.

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:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-024-04008-y

Ordering information: This journal article can be ordered from
https://www.nature.com/palcomms/about

DOI: 10.1057/s41599-024-04008-y

Access Statistics for this article

More articles in Palgrave Communications from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().