Determinants of Green Banking: Evidence from Banking Companies Listed on the Indonesia Stock Exchange

Nadila; Mega Silvia

Nadila Bina Darma University, Palembang
Mega Silvia Bina Darma University, Palembang

Keywords: Green Banking, Board of Commissioners Size, Profitability, Green Innovation

Abstract

This study aims to analyze the effect of board size, profitability, and Green Innovation on Green Banking in banking companies listed on the Indonesia Stock Exchange (IDX) for the 2024 period. This study uses a quantitative method with secondary data obtained from annual reports and sustainability reports. The research sample consisted of 42 banking companies selected using a purposive sampling technique, while data analysis was conducted using multiple linear regression. The results show that board size and Green Innovation have a positive and significant effect on Green Banking, while profitability has no significant effect. Simultaneously, the three independent variables have a significant effect on Green Banking with an Adjusted R Square value of 0.638. The findings of this study indicate that good corporate governance and the development of environmentally friendly innovations play an important role in increasing the implementation of Green Banking in the banking sector

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