Sustainable Supply Chain Management and Banks Performance: Evidence from Banking Sector in Nigeria

The study examines the effect of Sustainable Supply Chain Management (SSCM) on performance of Nigerian Deposit Money Banks (DMBS). An ex-post factor design was employed to study seven banks from 2005 to 2019 using panel co-integration test and dynamic ordinary least squares methods. The findings revealed SSCM has significant positive impact on market value (Tobin’s q) of DMBs (β = 0.529, p < 0.05; β = 1.386, p < 0.05). SSCM also had insignificant positive effect on banks’ operational profitability in the long-run (ROA: β = 0.276, p < 0.05; Tq: β = 3.61, p < 0.05). However, bank size, capital structure and bank’s liquidity support financial performance. This implies that SSCM environmental disclosure drives banks’ long-term corporate image. The study thus recommends continuous integration of SSCM strategies in the banking sector to proactively help managers communicate challenges and bridge information asymmetry among diverse stakeholders.