Bangladesh Bank Training Academy Journal

Abstract

The objective of the study is to recognize how stockholders adjust environmental information with fundamental accounting measures. This study investigates whether the disclosures regarding green banking activities is relevant to stock price of the firm by employing linear price model. The study applies regression analysis on a sample of 30 listed banks on Dhaka Stock Exchange. The analysis revealed that green banking disclosure has no direct impact on stock prices, but indirectly affects stock price through interaction with fundamental financial information, i.e. book value and earning per share. The estimates show that publications of green banking disclosures decrease the relevance of book value and increase the relevance of earning per share in determining firms share value.