Evaluating the success of green accounting practices in the banking sector of Bangladesh

Abstract

Green accounting has recently become more popular among Bangladeshi banks in order to reduce environmental damage and maintain ecological balance. Therefore, the main objective of this study is to evaluate the success of green accounting adoption by commercial banks in Bangladesh. Data were collected from Bangladeshi banks and subsequently analyzed using the Structure Equation Model (SEM), Spearman rho correlation, one-sample Wilcoxon signed rank test, Mann-Whitney test and Kruskal-Wallis test to examine factors influencing the present green accounting practice and performance of banks. The study results showed that green accounting knowledge and environmental knowledge contribute significantly to the present green accounting practice in Bangladesh. On the other hand, the policy of Bangladesh bank does not contribute significantly to the present green accounting practice. Additionally, the study's findings also showed that Bangladeshi banks' current use of green accounting practices and their financial performance are positively correlated. According to the study's findings, increasing the use of green accounting practices might improve their performance and improve the efficiency of financial transactions in Bangladeshi banks. The study outcomes may be used to popularize green accounting practices among banks to increase their performance and also save the ecosystem.