Impact of Economic, Environmental, and Social Sustainability Reporting on Financial Performance of UAE Banks
13 Pages Posted: 25 May 2017 Last revised: 24 Sep 2017
Date Written: May 20, 2017
Abstract
This paper examines the extent of sustainability disclosure in the annual reports and on the websites of listed banks on the UAE financial markets during the period 2003-2013. Moreover, it analyzes the impact of sustainability disclosure on banking performance by differentiating between conventional and Islamic banks. Our sustainability disclosure index includes economic, environmental and social dimensions. In addition, our results based on the dynamic panel data reveal that sustainability disclosures as well as economic, environmental and social disclosures have no significant effects on the banking performance of UAE banks, whether they be conventional or Islamic. The economic implication is that serious reactions by firm stakeholders should be addressed to enhance the effectiveness of the disclosure strategy.
Keywords: Corporate Sustainability Disclosure, Economic Disclosure, Environmental Disclosure, Corporate Social Responsibility, Banking Performance
JEL Classification: C33, G32, G34
Suggested Citation: Suggested Citation