How Environmental Accounting Influences the Risk-Adjusted Financial Performance in Commercial Banks Across Emerging Economies -A Review of Existing Literature

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This research paper examines the impact of environmental accounting on the risk-adjusted financial performance of commercial banks in emerging economies. As sustainability concerns grow, financial institutions are increasingly integrating environmental considerations into their accounting practices. This study employs a mixed-methods approach, combining quantitative analysis of financial data and qualitative interviews with banking professionals to assess how environmental accounting practices influence risk management and overall financial performance. Findings indicate that banks implementing robust environmental accounting frameworks experience enhanced risk-adjusted returns, driven by improved stakeholder trust, regulatory compliance, and operational efficiencies. Furthermore, the study highlights the role of environmental disclosures in reducing perceived risks among investors, leading to lower capital costs. The paper concludes that adopting environmental accounting not only aligns banks with global sustainability goals but also serves as a strategic tool for enhancing financial stability and competitiveness in emerging markets. Recommendations for policymakers and banking institutions are provided to foster the integration of sustainable practices within the financial sector.
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How Environmental Accounting Influences the Risk-Adjusted Financial Performance in Commercial Banks Across Emerging Economies -A Review of Existing Literature | Authorea try { document.documentElement.classList.add('js'); } catch (e) { } var _gaq = _gaq || []; _gaq.push(['_setAccount', 'G-8VDV14Y67G']); _gaq.push(['_trackPageview']); (function() { var ga = document.createElement('script'); ga.type = 'text/javascript'; ga.async = true; ga.src = ('https:' == document.location.protocol ? 'https://ssl' : 'http://www') + '.google-analytics.com/ga.js'; var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(ga, s); })(); Skip to main content Preprints Collections Wiley Open Research IET Open Research Ecological Society of Japan All Collections About About Authorea FAQs Contact Us Quick Search anywhere Search for preprint articles, keywords, etc. Search Search ADVANCED SEARCH SCROLL This is a preprint and has not been peer reviewed. Data may be preliminary. 15 May 2025 V1 Latest version Share on How Environmental Accounting Influences the Risk-Adjusted Financial Performance in Commercial Banks Across Emerging Economies -A Review of Existing Literature Author : McKenzie Curtis 0009-0006-8450-4944 [email protected] Authors Info & Affiliations https://doi.org/10.22541/au.174733557.75917118/v1 173 views 94 downloads Contents Abstract Supplementary Material Information & Authors Metrics & Citations View Options References Figures Tables Media Share Abstract This research paper examines the impact of environmental accounting on the risk-adjusted financial performance of commercial banks in emerging economies. As sustainability concerns grow, financial institutions are increasingly integrating environmental considerations into their accounting practices. This study employs a mixed-methods approach, combining quantitative analysis of financial data and qualitative interviews with banking professionals to assess how environmental accounting practices influence risk management and overall financial performance. Findings indicate that banks implementing robust environmental accounting frameworks experience enhanced risk-adjusted returns, driven by improved stakeholder trust, regulatory compliance, and operational efficiencies. Furthermore, the study highlights the role of environmental disclosures in reducing perceived risks among investors, leading to lower capital costs. The paper concludes that adopting environmental accounting not only aligns banks with global sustainability goals but also serves as a strategic tool for enhancing financial stability and competitiveness in emerging markets. Recommendations for policymakers and banking institutions are provided to foster the integration of sustainable practices within the financial sector. Supplementary Material File (how environmental accounting influences the risk.pdf) Download 311.12 KB Information & Authors Information Version history V1 Version 1 15 May 2025 Copyright This work is licensed under a Non Exclusive No Reuse License. Keywords commercial banks in developing economies environmental accounting finance financial performance of commercial banks sustainability Authors Affiliations McKenzie Curtis 0009-0006-8450-4944 [email protected] View all articles by this author Metrics & Citations Metrics Article Usage 173 views 94 downloads .FvxKWukQNSOunydq8rnd { width: 100px; } Citations Download citation McKenzie Curtis. How Environmental Accounting Influences the Risk-Adjusted Financial Performance in Commercial Banks Across Emerging Economies -A Review of Existing Literature. Authorea . 15 May 2025. 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last seen: 2026-05-20T01:45:00.602351+00:00