Cultural dimensions and sustainability disclosure in the banking sector: Insights from a qualitative comparative analysis approach

Abstract This study adopts an innovative, holistic research approach based on fuzzy set qualitative comparative analysis (fs‐QCA) to deeply delve into national cultural dimensions' role in affecting banks' sustainability disclosure practices in the Eastern European (EE) region. Accordingly, this study aims to identify whether one or more configurations of cultural dimensions derived from Hofstede's national culture framework are conducive to higher levels of sustainability disclosure, using a sample including the five largest banks in each country of the ‘Bucharest Nine’ (B9) area over 2018–2022 period. Results evidence that sustainability disclosure patterns are not homogeneous among the banks operating in B9 countries. After the introduction of Directive 95/2014/EU, banks in some countries maintained relatively constant levels of sustainability disclosure, while others experienced steady growth rates. No cultural dimension alone would likely determine higher sustainability disclosure levels among B9 banks, confirming that normative pressures influencing EE banks' sustainability disclosure practices result from a combination of more cultural facets. In particular, fs‐QCA highlights a bundle of cultural dimension configurations that mould stakeholders' expectations in investigated countries, exerting pressures on banks to enhance their transparency on sustainability issues. The presence of power distance recurs in most configurations as a factor enabling higher sustainability disclosure levels. On the other hand, in most cases, the presence of uncertainty avoidance and long‐term orientation is conducive to higher banks' sustainability and transparency.