Article Sidebar

Submitted
August 7, 2023
Accepted
August 31, 2026
Published
August 31, 2026
Download
PDF
Statistic
Read Counter : 0 Download : 0

Main Article Content

Abstract

The important role of banks in supporting sustainable development which includes economic, social and environmental aspects through social and environmental responsibility. One way to make this happen is through the application of the concept of green banking, which places environmental sustainability as a top priority in the banking sector. From this, this study analyzes the impact of profitability, company size, and leverage on green banking practices in the Indonesian Islamic banking sector by considering the role of good corporate governance (GCG) as a moderating factor. Using multiple regression and moderate regression analysis (MRA) shows that profitability has a significant positive effect on green banking disclosures, while firm size and leverage have a negative relationship with green banking practices. The results confirm the role of GCG as an important moderating factor, strengthening the positive relationship between profitability and green banking and reducing the negative impact of firm size and leverage. The implication is the need to focus on improving GCG to encourage broader and more effective green banking practices among banks, while taking into account the complexity of the interactions between these factors.

Keywords

Profitability Company Size Leverage Green banking Good corporate governance

Article Details

License

Copyright (c) 2026 Muh. Afdhal Mubarak AS, Muyassarah Hamid

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
Mubarak AS, M. A., & Hamid, M. (2026). Green banking, financial performance, and corporate governance in bank syariah Indonesia. Jurnal Ekonomi Indonesia, 15(2). https://doi.org/10.52813/jei.v18i2.500
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. [1] Andhari, D.S., Muflih, M. and Burhany, D.I. (2022) ‘Examining the Model of Islamic Bank Profitability: The Roles Islamic Social Responsibility, Firm Size, Leverage, and Board Size’, Review of Islamic Economics and Finance, 5(2), pp. 147–160. Available at: https://doi.org/10.17509/rief.v5i2.46949.
  2. [2] Ayuningrum, A.P. (2021) ‘The Effect Risk of Credit, Efficiency, and GCG of Bank Profitability (Study in Conventional Commercial Banks Registered on the Indonesia Stock Exchange Period 2012 - 2019)’, Management Analysis Journal, 10(2), pp. 139–145.
  3. [3] Carrington, D. (2023) Big banks’ trillion-dollar finance for fossil fuels ‘shocking’, says report, Guardian News & Media Limited. Available at: https://www.theguardian.com/environment/2021/mar/24/big-banks-trillion-dollar-finance-for-fossil-fuels-shocking-says-report (Accessed: 7 August 2023).
  4. [4] Coulon, Y. (2020) ‘Profitability and Performance Ratios BT - Rational Investing with Ratios: Implementing Ratios with Enterprise Value and Behavioral Finance’, in Y. Coulon (ed.). Cham: Springer International Publishing, pp. 85–104. Available at: https://doi.org/10.1007/978-3-030-34265-4_5.
  5. [5] Gunawan, J., Permatasari, P. and Sharma, U. (2022) ‘Exploring sustainability and green banking disclosures: a study of banking sector’, Environment, Development and Sustainability, 24(9), pp. 11153–11194. Available at: https://doi.org/10.1007/s10668-021-01901-3.
  6. [6] Hanif, Ningsih, N.W. and Iqbal, F. (2021) ‘Green Banking terhadap Profitabilitas Bank Umum Syariah di Indonesia’, Jurnal lmiah Keuangan dan Perbankan, 3(2). Available at: https://123dok.com/document/qv9gk3ly-green-banking-profitabilitas-syariah-indonesia-raden-intan-lampung.html.
  7. [7] International Finance Corporation (2014) The Indonesia Corporate Governance Manual - First Edition, Otoritas Jasa Keuangan. Jakarta. Available at: http://www.ojk.go.id/Files/box/THE-INDONESIA-CORPORATE-GOVERNANCE-MANUAL-First-Edition.pdf#search=governance.
  8. [8] Jannah, M.A. and Sa’diyah, M. (2022) ‘Comparative analysis of financial performance at Bank Syariah Mandiri and Bank BCA Syariah during the covid-19 pandemic’, NUsantara Islamic Economic Journal, 1(2), pp. 209–225. Available at: https://doi.org/10.34001/nuiej.v1i2.248.
  9. [9] Khairunnessa, F., Vazquez-Brust, D.A. and Yakovleva, N. (2021) ‘Corporate Social Responsibility and Sustainable Development: A Study of Commercial Banks in’, Sustainability, 13(4), p. 1904. Available at: http://dx.doi.org/10.3390/SU13041904.
  10. [10] Kim, J. (2018) ‘Leverage the Financing Role of Banks for Low-Carbon Energy Transition BT - Financing for Low-carbon Energy Transition: Unlocking the Potential of Private Capital’, in V. Anbumozhi, K. Kalirajan, and F. Kimura (eds). Singapore: Springer Singapore, pp. 189–210. Available at: https://doi.org/10.1007/978-981-10-8582-6_8.
  11. [11] Kobor, A., Drake, P.P. and Madison, J. (2010) Measures of Leverage, CFA Institute. Available at: https://www.cfainstitute.org/en/membership/professional-development/refresher -readings/measures-leverage (Accessed: 7 August 2023).
  12. [12] Kuncoro, M. (2013) Metode Riset untuk Bisnis dan Ekonomi. 4th edn. Edited by W. Hardani. Jakarta: Penerbit Erlangga.
  13. [13] Kurniyati, K. and Khairiyani, K. (2020) ‘Bagaimana Good Corporate Governance (GCG) dalam Keberlanjutan Perusahaan?’, AKTSAR: Jurnal Akuntansi Syariah, 3(2), p. 225. Available at: https://doi.org/10.21043/aktsar.v3i2.7093.
  14. [14] Mir, A.A. and Bhat, A.A. (2022) ‘Green banking and sustainability – a review’, Arab Gulf Journal of Scientific Research, 40(3), pp. 247–263. Available at: https://doi.org/10.1108/AGJSR-04-2022-0017.
  15. [15] Nissim, D. and Penman, S.H. (2003) ‘Financial statement analysis of leverage and how it informs about profitability and price-to-book ratios’, Review of Accounting Studies, 8(4), pp. 531–560. Available at: https://doi.org/10.1023/A:1027324317663.
  16. [16] O’Connell, M. and Ward, A.M. (2020) ‘Corporate Governance, Measurement of BT - Encyclopedia of Sustainable Management’, in S. Idowu et al. (eds). Cham: Springer International Publishing, pp. 1–6. Available at: https://doi.org/10.1007/978-3-030-02006-4_55-1.
  17. [17] Park, H. and Kim, J.D. (2020) ‘Transition towards green banking: role of financial regulators and financial institutions’, Asian Journal of Sustainability and Social Responsibility, 5(1). Available at: https://doi.org/10.1186/s41180-020-00034-3.
  18. [18] Putri, P.I. et al. (2022) ‘The Effect of Green Banking and Financial Performance on Banking Profitability’, Quality - Access to Success, 23(191), pp. 38–45. Available at: https://doi.org/10.47750/QAS/23.191.05.
  19. [19] Ratnasari, T., Surwanti, A. and Pribadi, F. (2021) ‘Implementation of Green Banking and Financial Performance on Commercial Banks in Indonesia’, in W.A. Barnett and B.S. Sergi (eds) Recent Developments in Asian Economics International Symposia in Economic Theory and Econometrics. Emerald Publishing Limited (International Symposia in Economic Theory and Econometrics), pp. 323–336. Available at: https://doi.org/10.1108/S1571-038620210000028018.
  20. [20] Salsabila, A. et al. (2022) ‘Trends in Green Banking as Productive Financing in Realizing Sustainable Development’, Az-Zarqa’: Jurnal Hukum Bisnis Islam, 14(2), p. 151. Available at: https://doi.org/10.14421/azzarqa.v14i2.2562.
  21. [21] Sekaran, U. and Bougie, R. (2013) Research Methods for Business: A Skill-Building Approach. Seventh ed, Leadership & Organization Development Journal. Seventh ed. Chichester: John Wiley & Sons Ltd. Available at: https://doi.org/10.1108/LODJ-06-2013-0079.
  22. [22] Susila, A.A. (2019) ‘Good Corporate Governance Bank Syariah di Indonesia’, Iqtishodiyah : Jurnal Ekonomi dan Bisnis Islam, 5(2), pp. 1–17. Available at: https://doi.org/10.36835/iqtishodiyah.v5i2.94.
  23. [23] Widyaningsih, D., Susilowati, H. and Andriana, M. (2022) ‘Pengaruh Profitabilitas, Leverage, Firm Size Terhadap Nilai Perusahaan Dengan Pengungkapan Csr Dan Gcg Sebagai Variabel Moderating’, Among Makarti, 15(3), pp. 289–303. Available at: https://doi.org/10.52353/ama.v15i3.303.

Similar Articles

1 2 > >> 

You may also start an advanced similarity search for this article.