An empirical study of the effects of green Sukuk spur on economic growth, social development, and financial performance in Indonesia

Qaisar Ali (), Sulistya Rusgianto, Shazia Parveen, Hakimah Yaacob and Razali Mat Zin
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Qaisar Ali: Universiti Islam Sultan Sharif Ali
Sulistya Rusgianto: Universitas Airlangga
Shazia Parveen: National College of Business Administration and Economics
Hakimah Yaacob: Universiti Islam Sultan Sharif Ali
Razali Mat Zin: Universiti Islam Sultan Sharif Ali

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2024, vol. 26, issue 8, No 79, 21097-21123

Abstract: Abstract Although green Sukuk (GS) as a sustainability enabler has started to emerge globally, a limited amount of research has focused on understanding its perspectives and potential. Accordingly, this research aims to explore the economic, social, and financial perspectives of GS by conceptualizing the effects of the issuance of green Sukuk (IGS) on economic growth (EG), social development (SD), and financial performance (FP). The fundamentals of the resource-based view (RBV) theory and institutional theory are employed to develop the theoretical underpinnings of this research. The panel data for IGS, EG, SD, and FP indicators between 2018 and 2021 were collected from Indonesia and were analyzed using the generalized method of movements regression technique. The results indicate that IGS positively interacts with all three indicators (EG, SD, and FP). Further analysis reveals that IGS has a moderate positive effect on EG, a weak positive effect on SD, and a significant positive effect on FP. Our research findings contribute to developing an integrated business landscape covering major domains of environmental sustainability, socioeconomic development, and financial performance under the GS theme.

Keywords: Green Sukuk; Green bonds; Green investments; Socially responsible investments; Sustainability; Financial performance (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s10668-023-03520-6

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