LAUSR

Focusing on the differences between sustainability in developed and developing countries, this study examines the relationship between sustainability reporting and bank's performance in developed and developing countries. This study examines equal selected sample from developed and developing countries for eight years (2009-2016). The sample contained 232 banks to yield 1,856 bank-year observations. The findings deduced from the empirical results on one hand demonstrated that ESG positively affect the bank's market performance in developed countries which supporting the value creation theory. However, the ESG negatively affect the bank's financial performance which explains the cost capital reduction theory. On the other hand, the findings of developing countries showed that ESG positively affect the bank's financial performance in developing countries. However, it has insignificant effect on the market performance.