Issue

Vol. 13 No. 3 (2026): December

Date Log

Submitted
21 July 2026
Accepted
22 September 2026
Published
9 October 2026

Copyright (c) 2026 Nurhikmah Nurhikmah S.R, Nasrullah Nasrullah, Ismawati Ismawati (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Green Financing, Green Innovation, and Financial Performance of Indonesian Listed Banks

https://doi.org/10.24252/minds.v13i3.70821
Nurhikmah Nurhikmah S.R
Universitas Muhammadiyah Makassar, Indonesia
Nasrullah Nasrullah
Universitas Muhammadiyah Makassar, Indonesia
Ismawati Ismawati
Universitas Muhammadiyah Makassar, Indonesia

Corresponding Author(s) : Nurhikmah Nurhikmah S.R

[email protected]

Jurnal Minds: Manajemen Ide dan Inspirasi, Vol. 13 No. 3 (2026): December

Abstract

This study examines the effect of Green Financing on financial performance through the mediating role of Green Innovation in Indonesian listed banking companies. It contributes to the sustainable finance literature by explaining how Green Innovation serves as a strategic mechanism linking Green Financing to financial performance. The study employs a quantitative approach using panel data from 14 banks listed on the Indonesia Stock Exchange during 2022–2024. Green Financing is measured by the natural logarithm of total sustainable financing, Green Innovation by the Green Innovation Disclosure Index (GIDI), and financial performance by Return on Assets (ROA), Return on Equity (ROE), and Capital Adequacy Ratio (CAR). Panel regression and Sobel mediation tests reveal that Green Financing significantly promotes Green Innovation. Green Innovation negatively affects ROA and ROE but positively influences CAR while significantly mediating the relationship between Green Financing and financial performance.

Keywords

Green Finance Green Innovation Financial Performance Sustainable Banking Panel Data Analysis
Nurhikmah S.R, N., Nasrullah, N., & Ismawati, I. (2026). Green Financing, Green Innovation, and Financial Performance of Indonesian Listed Banks. Jurnal Minds: Manajemen Ide Dan Inspirasi, 13(3), 641–652. https://doi.org/10.24252/minds.v13i3.70821
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