Since Bitcoin has frequently witnessed price fluctuations and high volatility, the factors influencing its returns and volatility is an important research subject. To accomplish this goal, we applied the Gets reduction method which has a good reputation compared to other competing approaches in terms of the statistical apparatus available for a repeated search to determine the final set of determinants and the consideration of location shifts. We found that the reduced set of explanatory variables that affects Bitcoin returns is composed of Twitter-based economic uncertainty, gold return, the return of the Euro/USD exchange rate, the return of the US Nasdaq stock exchange index, market capitalization, and Bitcoin mining difficulty. In contrast, the volatility of Bitcoin is affected by only lagged terms of the ARCH effect and the volume of this cryptocurrency.

Banks have faced increasing attention regarding their ability to balance Corporate Social Responsibility (CSR) initiatives, operational efficiency, and credit risk management, particularly in the wake of global financial challenges. This study examines the interplay between CSR, efficiency, and credit risk in 131 US banks from 2010 to 2018. Using the Choquet integral, two-step Data Envelopment Analysis, and a dynamic panel with the Generalized Method of Moments, the findings reveal a virtuous circle between CSR and credit risk, where CSR enhances credit risk profiles. Similarly, efficiency and risk exhibit mutual reinforcement. However, a vicious circle is identified between CSR and efficiency, indicating trade-offs between CSR objectives and operational efficiency. These insights guide policymakers and bank managers in optimizing this balance.

This study investigates the dynamic relationship between risk-taking, capital adequacy, and operational efficiency in the MENA banking sector, with a particular emphasis on the role of ESG performance in shaping sustainable financial behavior. Using an unbalanced panel of 167 commercial banks from 2015 to 2024, we develop a three-equation framework and estimate it using the two-step System-GMM method to address endogeneity, simultaneity, and dynamic effects. The empirical results reveal significant interdependencies among risk, capital, and efficiency, confirming the existence of a sustainable risk–capital–efficiency nexus. The results reveal that bank risk is strongly persistent; however, ESG performance significantly mitigates credit risk, particularly through its social and governance dimensions, which enhance transparency, borrower discipline, and stakeholder trust. Efficiency also acts as a stabilizing force by reducing overall risk. Capital adequacy is positively influenced by ESG performance and efficiency, indicating that sustainable and well-managed banks maintain stronger capital buffers and more resilient balance sheets. Furthermore, bank efficiency improves with profitability, capitalization, favorable macroeconomic conditions, and socially oriented ESG engagement. These findings demonstrate that ESG adoption is a strategic driver of financial soundness, simultaneously lowering risk, reinforcing capital strength, and enhancing operational performance. The paper offers important implications for regulators and bank managers, highlighting the need to embed ESG metrics into supervisory frameworks, risk-management systems, and long-term strategic planning.

Purpose This study investigates the potential greenwashing phenomena associated with green sukuk issuances across MENA and ASEAN countries. It explores whether green sukuk genuinely reflect environmentally responsible financing or are misused to attract investors through misleading green claims, drawing on stakeholder theory, signalling theory, and agency theory. Methods The analysis examines the bidirectional relationship between environmental and energy indicators (pollution, carbon emissions, non-renewable energy use, renewable energy adoption) and the issuance volume and coupon rates of green sukuk. Sampling The study covers green sukuk issuances across MENA and ASEAN countries over the period 1990–2022. Findings The results reveal widespread greenwashing practices in most countries studied, where issuers exploit environmental signals while diverting funds to non-ecological projects and offering high coupon rates to offset agency risks and information asymmetry. This undermines the legitimacy of green sukuk from both Islamic finance and environmental perspectives. In contrast, Turkey stands out by demonstrating a credible commitment to environmental responsibility, with green sukuk linked to lower pollution, reduced emissions, and increased renewable energy use, thereby validating stakeholder theory and strengthening issuer legitimacy. Policy implications The findings call for stricter standards, enhanced certification requirements, and greater transparency in green sukuk markets to ensure alignment with genuine environmental objectives and to safeguard investor trust.