3d8d135818d1675848a5b22 20240530043839015 chitu:chitu chitkarauniversitypublications@chitkara.edu.in WEB-FORM Journal of Technology Management for Growing Economies JTMGE 0976545X 24563226 10.15415/jtmge https://tmg.chitkara.edu.in/ 04 28 2021 04 28 2021 12 1 10.15415/jtmge/2021.121 https://tmg.chitkara.edu.in/2021/vol-12-no-1/ Impact of Environmental Performance on Financial Performance: Empirical Evidence from Indian Banking Sector School of Management, The North Cap University, Sector 23A, Gurugram, Haryana–122017, India Parul Munjal https://orcid.org/0000-0002-8065-0139 P. Malarvizhi IILM University, Sector 53, Gurugram, Haryana–122003, India There has been long-standing debate over whether or not firms gain economic competiveness from reducing their impact on the environment. Although ample literature is available on association between environmental performance and financial performance across various sectors, little empirical evidence is available in context of Indian banking sector. This research aims to analyze whether there is any significant relationship between environmental performance and financial performance of banks operating in India for a period 2013-14 to 2017-18. Secondary data has been collected for a sample of 83 banks operating in India. Content analysis was applied to extract information about environmental performance disclosed by sample banks followed by construction of environmental disclosure score index. Hierarchical multiple regression was applied to analyze relationship between environmental performance and financial performance after controlling for effects of size, financial leverage and capital intensity. Results exhibit no significant relationship between environmental performance and financial performance of banks operating in India. Findings of this research are expected to provide insight to users and readers of financial statements to have better understanding about the environmental practices carried out by banks. It would also contribute significantly towards decision making for policy makers in Indian banking sector to establish mandatory environmental legislations for reporting on environmental practices in order to improve non financial disclosure and financial performance in Indian banking sector. 04 28 2021 04 28 2021 13 24 10.15415/jtmge.2021.121002 https://tmg.chitkara.edu.in/2021/impact-of-environmental-performance-on-financial-performance-empirical-evidence-from-indian-banking-sector/