Impact of green investment on stock price of listed

banking
companies of Bangladesh

Author:
MD. Sahidul Islam & Sadman Kabir
Bangladesh University of Professionals

Presented By:
Md.Torikul IKslam
Student, Shahjalal University of Science and Technology,Sylhet
Department of Business Administration
Contents
1. Introduction
2. Literature Review
3. Methodology of the study
4. Key Findings
5. Conclusions
 Introduction
The global economy faces a pressing challenge in addressing environmental issues,
with growing awareness among businesses and consumers alike. Businesses respond
to consumer demand by adapting practices, influenced significantly by the financial
sector, especially banks . Joint efforts from public, business, and individual sectors
are essential to tackle environmental degradation, with banks playing a pivotal role
through initiatives like green banking policies . Sustainable finance, including green
financing, aims to balance economic progress and environmental concerns .
Bangladesh's commitment to green banking reflects its crucial role in fostering
sustainability (Bangladesh Bank). This study examines the relationship between
banks' stock prices and green financing policies, aiming to contribute to existing
problems.
 Literature Review
Green financing is a form of investment practice that considers all social, environmental,
and sustainability aspects with the aim of preserving the environment and the earth's
natural resources. Green financing is an excellent approach to maintain synergy between
economic development and environmental issues. Over the past two decades, numerous
studies have been undertaken all over the world, demonstrating an ever-clearer correlation
between corporate profitability and environmental performances. According to Murphy
(2002), businesses that seek goals that are in line with environmental standards saw
greater financial benefits than the market overall, while those who generated lower profits
did poorly. Exploring the relationship between green investment, financial performance, and
stock price.
 Methodology of the study
1. A standard structured questionnaire

2.Number of respondents 23 DSE listed top banks.

3.The aim of this study is to examine the relationships between

stock price and green investment on the banking sector of
Bangladesh
 Key Findings
1.Green financing has a significant and positive impact on the stock prices of
banks at a 1% significant level under random effect model.

2.Return on assets (ROA) has also significant and positive impact on the stock
price at a 5% level of significance.

3.Debt-equity ratio (D/E ratio) also has a significant and positive impact on the
stock prices of banks at a 1% significant level.
 Conclusion
This study makes a significant contribution to the literature of
business. This research illustrates the connection between one
critical variable—green investment—and the long-term
sustainability of businesses (stock price). This report defines green
investing in significant detail. Their part in ensuring the continued
viability of the company is evaluated.