Greenwashing and Bank Financial Performance in Developing Markets: The Role of Boardroom Diversity and ESG Controversies Mithilesh Gidage, Shilpa Bhide, Ashutosh Kolte, Bright Akwasi Gyamfi, Simplice A. Asongu Business Strategy and Development, 2025 This study investigates the relationship between greenwashing (GWS) and the financial performance (FP) of banks in developing economies, focusing on two critical moderating factors: boardroom diversity and Environmental, Social, and Governance (ESG) controversies. Using a sample of 110 listed banks across 18 developing countries from 2012–2013 to 2021–2022, this study employs regression analysis to assess the impact of GWS on FP. The study uses the peer‐relative GWS score by Yu et al. and introduces boardroom diversity and ESG controversies as moderating variables to analyze their influence on the GWS‐FP relationship. The findings reveal that GWS negatively affects the FP of banks in developing economies. Furthermore, the presence of female directors on bank boards moderates this relationship, reducing the financial penalties associated with GWS. ESG controversies, on the other hand, amplify the negative impact of GWS on FP, indicating the importance of a holistic approach to sustainability. This study addresses critical gaps in the literature by examining the nexus between GWS and FP, specifically within the banking sector of developing economies—a context that has received limited attention. Moreover, the study offers novel insights into the governance‐sustainability‐performance dynamic in the banking sector.
Exploring the impact of green finance, CSR and green banking on environmental sustainability performance in Indian banks Mithilesh Gidage, Shilpa Bhide International Journal of Productivity and Performance Management, 2025 Purpose This study addresses a gap in empirical research by examining how sustainable banking practices influence the environmental sustainability performance (ESP) of banks in emerging economies like India. Specifically, it explores the direct and indirect effects of green banking practices (GBPs), green finance (GF) and CSR practices on ESP. Design/methodology/approach A quantitative research approach was adopted, utilizing a structured questionnaire to collect data from Indian banking institutions. The relationships among the study variables are examined using structural equation modeling. This technique enabled the assessment of both direct and indirect effects. Findings The results indicate that GBPs have a significant and positive effect on ESP, GF and CSR practices. Additionally, GF positively influences both CSR practices and ESP. GBPs were found to exert indirect effects on ESP through both CSR practices and GF. Furthermore, GBPs influence CSR practices indirectly via GF, while GF has an indirect effect on ESP through CSR practices. These findings emphasize the interconnected roles of GBPs, GF and CSR in driving ESP in banking institutions. Originality/value This study contributes to the literature on sustainable banking by focusing on ESP in the Indian banking sector, including often-overlooked institutions like regional rural banks and small finance banks. It uniquely integrates GBPs, GF and CSR practices to assess their combined impact on ESP. Additionally, the research extends legitimacy theory to explore how banks align with societal expectations through sustainability efforts. By analyzing both direct and indirect effects, it offers practical insights for policymakers and managers to enhance sustainability performance in banking.
ESG Performance and Green Innovation Nexus: Insights From Indian Manufacturing Titans Mithilesh Gidage, Shilpa Bhide Business Strategy and the Environment, 2025 The existing literature highlights the influence of green intellectual capital (GIC), green finance (GF), and green innovation (GI) on firms' environmental performance; however, significant gaps persist regarding their impact on ESG performance. To address this gap, our study delves into the intricate interplay between GIC, GF, GI, and ESG performance. In this study, we posit that the interplay among GIC, GF, GI, and ESG performance is more complex than traditionally acknowledged. Contrary to previous assumptions, we posit that GIC and GF do not directly correlate with ESG performance. Instead, we propose that GI acts as a mediator between GIC, GF, and ESG performance. Moreover, we argue that ESG strategies not only directly affect ESG performance but also moderate the relationship between GI and ESG outcomes. To substantiate our assertions, we employ structural equation modeling using data collected from senior decision‐makers in 77 Indian manufacturing firms listed on the NIFTY India Manufacturing Index. Our empirical findings provide robust support for most hypotheses, shedding light on the nuanced dynamics within the realm of ESG performance.
Impact of ESG performance on financial risk in energy firms: evidence from developing countries Mithilesh Gidage, Shilpa Bhide International Journal of Energy Sector Management, 2025 Purpose This study aims to examine the impact of ESG performance on financial risk (FR) in energy firms from developing countries. It also explores the moderating roles of ESG controversies and board gender diversity (BGD) on this relationship. Design/methodology/approach The research uses a panel data set of 218 energy firms from 20 developing countries from 2017 to 2022, using two-stage least squares regression to address potential endogeneity. Robustness checks are conducted using fixed-effects estimation and pooled ordinary least squares. Findings The results indicate that superior ESG performance significantly reduces both total and systemic risk. ESG controversies positively moderate the relationship between ESG performance and FR, suggesting that controversies may weaken the risk-reducing benefits of strong ESG practices. Additionally, BGD significantly strengthens the negative relationship between ESG performance and FR. Robustness checks confirm the consistency of these findings across different estimation methods. Originality/value This study contributes to the growing body of literature by examining the role of ESG performance in FR mitigation, specifically within the energy sector in developing countries. To the best of the authors’ knowledge, this is the first research to explore these dynamics in this specific context. This study uniquely illustrates how ESG controversies and BGD significantly moderate the ESG–risk relationship, offering fresh insights that extend stakeholder, risk management and legitimacy theories. The findings highlight the importance of integrating ESG factors into corporate governance and risk management, particularly for firms operating in high-risk, high-impact industries such as energy.
Exploring the nexus between intellectual capital, green innovation, sustainability and financial performance in creative industry MSMEs Mithilesh Gidage, Shilpa Bhide Journal of Enterprising Communities, 2025 Purpose This study investigates the impact of intellectual capital (IC) and green innovation (GI) on the financial performance (FP) of micro, small and medium enterprises (MSMEs) within creative industry in India. It also explores the mediating role of sustainability in these relationships, aiming to provide insights into how these factors contribute to business success and long-term sustainability within the creative sector. Design/methodology/approach The research uses a quantitative methodology, analyzing data collected from creative MSMEs in India. Structural equation modeling (SEM) is used to test the hypotheses. Data was gathered through a structured questionnaire, ensuring a comprehensive analysis of the relationships among the constructs. Findings The study reveals significant positive relationships between IC, GI, sustainability and FP in small and midsize creative businesses. IC and GI positively influence FP, with sustainability acting as a mediating factor. These findings illustrate that integrating sustainability into business strategies can amplify the benefits derived from IC and GI. Originality/value This study advances the understanding of FP in creative MSMEs by examining the impact of IC and GI through the lens of sustainability. It introduces a framework that demonstrates how strategic resources and sustainable practices can be leveraged to achieve significant business outcomes. By providing insights into how sustainability initiatives enhance operational efficiency and profitability, this research offers a transformative approach to integrating sustainability into business strategy. The findings contribute to a generalizable model applicable across various sectors and regions, enriching the discourse on sustainable business practices.
ESG and economic growth: Catalysts for achieving sustainable development goals in developing economies Mithilesh Gidage, Shilpa Bhide Sustainable Development, 2025 This study investigates the impact of Environmental, Social, and Corporate Governance (ESG) dimensions and economic growth on the achievement of Sustainable Development Goals (SDGs) in developing countries. The research utilizes a quantitative approach, analyzing panel data from 12 developing nations from 2010 to 2022. The Panel ARDL (Pooled Mean Group) method is applied to assess both short‐term and long‐term effects of disaggregated ESG components—environmental, social, and governance scores—on SDG attainment. Robustness is confirmed through endogeneity tests conducted using Instrumental Variable (IV) regression analysis with the Two‐Stage Least Squares (2SLS) method. The results reveal a positive relationship between ESG dimensions and SDG attainment, with economic growth also contributing significantly to SDG progress. The study highlights the importance of integrating ESG principles with economic growth strategies to enhance SDG fulfillment in developing countries, offering valuable insights for policymakers and business leaders in advancing sustainable development agendas.
Reporting and disclosure of intellectual capital: a literature review Shilpa Bhide International Journal of Intellectual Property Management, 2025 The objective of the paper is to review the literature on the measurement methods, valuation, and disclosure (reporting) of intellectual capital. Research papers from 1998 to 2021 were collected, studied, and classified into relevant and non-relevant for the present study. Out of 150 research papers, 91 papers were identified and studied in detail, out of which around 64 research papers appear in the literature review. The results of the literature review were that it was observed in many cases the disclosures are voluntary and there seems to be no harmonisation in the disclosure requirements. Disclosure and reporting can help in decision-making to the stakeholders, even if the measurement and valuation are difficult. It can also be observed that in different types of businesses the degree of reporting and disclosures are different and influences the profit and the firm's financial performance, making it an important component of disclosures and reporting.
