Corporate Social Responsibility and Financial Performance in Nepalese Commercial Banks

Social Responsibility ◽

Financial Performance ◽

Commercial Banks ◽

Banking Sector ◽

Joint Venture ◽

Positive Impact ◽

Corporate Social ◽

This study aims to identify the relationship between corporate social responsibility and financial performance of commercial banks in Nepal. Out of the 28 commercial banks under the population, only 6 banks were selected as the sample for the study through purposive sampling technique comprising 2 government owned, 2 joint venture and 2 private commercial banks covering financial year ranges from 2016/17 to 2018/2019. The results indicate that CSR exerts positive impact on financial performance of the Nepalese government owned banks and provides great insights for management, to integrate the CSR with strategic intent of the business. In contrary it revealed negative impact on financial performance in joint venture banks. Furthermore CSR have significantly low positive impact on financial performance. The study concluded that the relationship between CSR and firm financial performance differs in every category of Nepalese commercial banks. This study can be used for further research regarding corporate social responsibility and financial performance in cross banking sector as well as cross country comparisons.

International Journal of Financial Accountability, Economics, Management, and Auditing (IJFAEMA) ◽

Impact of corporate social responsibility on financial performance of listed Moroccan companies

10.52502/ijfaema.v3i3.58 ◽

2021 ◽

Vol 3 (3) ◽

pp. 132-144

Author(s):

Mimoun Benali ◽

Jihad EL YAAGOUBI ◽

Ghada MOUFDI

Keyword(s):

Social Responsibility ◽

Financial Performance ◽

Positive Impact ◽

Financial Indicators ◽

A Value ◽

Dichotomous Variable ◽

Corporate Social ◽

The Relationship ◽

Analyze Data

This paper aims to study empirically the relationship between corporate social responsibility (CSR) and financial performance (FP) in the Moroccan context. We opted for a longitudinal study of listed companies over the period 2012-2017. We have used the accounting and financial indicators to assess FP. In the absence of an index which measures the score of the PS, we opted for a dichotomous variable which takes a value 1 if the company is labeled CSR by the CGEM and value 0 if not. Control variables are measured by size, age, risk, and industry. Panel data are used as well to analyze data. Findings of this study indicate mixed results. Indeed, we have found a positive impact of CSR on PF, when using ROA as proxy for FP. However, when using ROE as proxy for FP, we do not find any impact of CSR on FP (neutral impact). We found that ROS is linked negatively with CSR.

The Impact of Financial Performance on Corporate Social Responsibility: An Empirical Analysis of Conventional and Islamic Banks of Pakistan

Organization Theory Review ◽

10.32350/otr.0202.01 ◽

2018 ◽

Vol 2 (2) ◽

pp. 01-18

Author(s):

Ummara Fatima ◽

Uzma Bashir

Keyword(s):

Social Responsibility ◽

Financial Performance ◽

Banking Sector ◽

Annual Reports ◽

Islamic Banks ◽

Conventional Banks ◽

Corporate Social ◽

The Impact ◽

The study explores how financial performance (FP) affects the corporate social responsibility (CSR) of the banking sector of Pakistan. Further, it also elaborates the comparison between FP and CSR of Islamic and conventional banks of Pakistan. The study is based on the annual reports of banks listed at Pakistan Stock Exchange (PSE) for the years 2010-2016. The study used several panel data diagnostic tests and three regression models to check the relationship between FP and CSR of Islamic and conventional banks of Pakistan, while taking leverage and size as control variables. The results indicate that in case of conventional banks the relationship between ROE and CSR is negative. Here, the results are consistent with the agency theory which states that investment in CSR related activities is a waste of resources. While return on asset (ROA) is depicting negative and insignificant relationship with CSR, which depicts that FP does not have any impact on the investment in CSR initiatives. In the case of Islamic banks, the relationship between return on equity (ROE) and CSR is positive and significant. Here, the results support social contract and stakeholder theories. The research has important practical consequences that will help the banking industry managers to adopt optimal investment strategies about CSR related activities. The study provides guidelines to conventional banks to invest more in CSR in the same way Islamic banks are doing. The findings of the study lay some foundations upon which a more detailed analysis of CSR of banks could be based.

THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY (CSR) ON ISLAMIC BANKING PERFORMANCE IN MALAYSIA

Advanced International Journal of Banking, Accounting and Finance ◽

10.35631/aijbaf.38001 ◽

2021 ◽

Vol 3 (8) ◽

pp. 01-15

Author(s):

Nur Hanisah Razali ◽

Nizam Jaafar ◽

Ismail Ahmad

Keyword(s):

Social Responsibility ◽

Financial Performance ◽

Future Research ◽

Socially Responsible ◽

Effect Regression ◽

Corporate Social ◽

The Impact ◽

Corporate Social Responsibility (CSR) activities can lead the company to gain better recognition from citizens and investors. CSR has become one of the added values for a company in increasing competition from global and domestic. However, there are some critics who contend that the CSR benefits surpass the actual cost and some also claim that for the company to be socially responsible is too expensive. Therefore, the objective of this study is to determine the relationship between Corporate Social Responsibility (CSR) impacts on the Islamic Banks' financial performance, specifically in Malaysia. This study used Fixed Effect Regression Model to achieve the objectives of this study. The independent variables used to determine CSR comprise of environment, community, and workplace and marketplace expenditure ratio. Meanwhile, to measure the financial bank performance that is the dependent variable, Return on Asset (ROA) is used in this study. Based on this model, the researcher concluded that CSR’s elements which are environment, community, and marketplace have significant impacts on banks financial performance. This is consistent with Stakeholder Theory which states that the firm financial performance is determined by external stakeholders. In order to enhance the study future research may segregate the focus of the study specifically on Islamic Bank or conventional banking. Future research may also conduct research on the different industries.

How does corporate social responsibility influence firm financial performance?

Corporate Governance ◽

10.1108/cg-10-2020-0467 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Sourour Ben Saad ◽

Lotfi Belkacem

Keyword(s):

Social Responsibility ◽

Capital Structure ◽

Financial Performance ◽

Content Type ◽

Structure Channel ◽

Csr Disclosure ◽

Corporate Social ◽

Purpose This paper has three main purposes. First, this paper aims to study the effect of corporate social responsibility (CSR) on firm financial performance. Second, this study aims to examine how mandatory CSR disclosure impacts financial performance. Further, this paper aims to investigate the intervening role of capital structure decisions on the relationship between CSR and financial performance. Design/methodology/approach Based on a sample of French non-financial listed companies over the period 2006–2017, this study uses structural equations modeling and a difference-in-differences approach to highlight these effects. Findings This paper finds that CSR has a significant positive association with financial performance. In addition, although the mandate does not require firms to spend on CSR, the socially responsible firms experience an increase in profitability subsequent to the mandate. Finally, this study argues and finds evidence that the relationship between CSR and financial performance is mediated through the capital structure channel. Originality/value This paper contributes to the literature in several ways. First, the study provides a new research stream by examining the effect of mandatory CSR disclosure on firm financial performance. Second, is to knowledge the first to examine whether and how CSR affects financial performance through the capital structure channel.

Relationship Between Corporate Governance and Corporate Social Responsibility: Evidence From Nepalese Commercial Banks

Journal of Nepalese Business Studies ◽

10.3126/jnbs.v9i1.14603 ◽

2016 ◽

Vol 9 (1) ◽

pp. 137-144 ◽

Cited By ~ 1

Author(s):

Resam Lal Poudel

Keyword(s):

Corporate Governance ◽

Social Responsibility ◽

Commercial Banks ◽

Joint Venture ◽

Sampling Technique ◽

Governance Practices ◽

Csr Disclosure ◽

Corporate Social ◽

The research paper aims to show the relationship between corporate governance (CG) and corporate social responsibility (CSR) disclosure in Nepalese commercial banks. In simple terms corporate governance is the system by which companies are governed. It is a set of rules and behaviors according to which companies are managed and controlled. Corporate social responsibility or sustainability is an important feature in contemporary business addresses different aspects like business ethics, stakeholder’s management and social performance. Effective corporate governance is expected to support effective and efficient corporate social responsibility within commercial banks. The content analysis of 10 commercial banks composing 5 Joint Venture (JV) Banks and 5 Non Joint Venture (NJV) Banks though judgmental sampling method based on stratified sampling technique was used to extract CSR disclosure items and corporate governance factors from secondary data specifically annual report for the period of one year. T-test was employed to test the level of significance. Regression analysis was used to examine the relationship between corporate social responsibility disclosure and independent variables associated with corporate governance practices. The study reveals that different variables associated with corporate governance practices are positively and significantly correlated with the level of corporate social responsibility initiatives based on all three models. The paper is useful to organization and statutory bodies to take consideration of corporate governance practices which will enhance corporate social responsibility initiatives.Journal of Nepalese Business Studies Vol. 9, No. 1, 2015 pp.137-144

The Impact of Corporate Social Responsibility (CSR) on Bank Reputation and Financial Performance (Case study: Iranian banks)

10.47277/jee/1(1)6 ◽

2020 ◽

Vol 1 (1) ◽

pp. 1-6

Keyword(s):

Social Responsibility ◽

Financial Performance ◽

Banking Sector ◽

Positive Impact ◽

Financial Institution ◽

Private Banks ◽

Corporate Social ◽

The Impact

Banks and financial institutions play a significant role in the economy by facilitating the transfer of resources between lenders and borrowers. This article is an endeavor to map the corporate social responsibility (CSR) practices of major players in the Iranian banking sector and to find out the impact of such practices on their performance and image. This study examines the impact of CSR on bank reputation and financial performance. This research is based on local sample of 24 private banks and financial institution in Iran. We use a questionnaire for assessing reputation and for assessing performance we check bank income by their annual statements. The main hypotheses of research show the positive relationship between these indicators. The findings of study suggest that banks in Iran have increased their CSR activities, which also have a positive impact on performance of the business, apart from improving their reputation and goodwill.

Effects of Corporate Social Responsibility on Corporate Financial Performance: A Competitive-Action Perspective

Journal of Management ◽

10.1177/0149206315602530 ◽

2015 ◽

Vol 44 (3) ◽

pp. 1097-1118 ◽

Cited By ~ 58

Author(s):

Kwang-Ho Kim ◽

MinChung Kim ◽

Cuili Qian

Keyword(s):

Social Responsibility ◽

Financial Performance ◽

Corporate Financial Performance ◽

Socially Responsible ◽

Competitive Action ◽

Using Data ◽

Corporate Social ◽

We attempt to provide a more nuanced view of the relationship between corporate social responsibility (CSR) and firm financial performance using a competitive-action perspective. We argue that competitive action should be considered as an important contingency that determines the effects of CSR activities on firm financial performance. Using data for 113 publicly listed U.S. firms in the software industry between 2000 and 2005, we found that socially responsible activities (positive CSR) enhance firm financial performance when the firm’s competitive-action level is high, whereas socially irresponsible activities (negative CSR) actually improve firm financial performance when the competitive-action level is low. By introducing competitive action as an important contingency, this study contributes to the literature on CSR and strategic management.

Corporate social responsibility and future financial performance

EuroMed Journal of Business ◽

10.1108/emjb-11-2017-0044 ◽

2018 ◽

Vol 13 (3) ◽

pp. 351-371 ◽

Cited By ~ 22

Author(s):

Mahdi Salehi ◽

Mahmoud Lari DashtBayaz ◽

Sohila Khorashadizadeh

Keyword(s):

Social Responsibility ◽

Financial Performance ◽

Emerging Market ◽

Return On Assets ◽

Content Type ◽

The Future ◽

Corporate Social ◽

Purpose The purpose of this paper is to investigate the relationship between corporate social responsibility (CSR) expenditures and firm financial performance in an emerging market. Design/methodology/approach The authors examine the hypotheses by performing panel data analysis on a sample of 159 companies listed on the Tehran Stock Exchange during 2010–2015. Findings The findings suggest that the investment in CSR initiatives is significantly and positively associated with firm financial performance as proxied by changes in return on assets. Moreover, the findings confirm a positive and significant association between CSR expenditures and firm financial performance as proxied by both the future changes in return on assets and the future changes in operating cash flows scaled by total assets. Originality/value The present study has examined the relationship between CSR and firm financial performance in a country where, to the authors’ knowledge as in most other developing markets, such a relationship has not been a subject of empirical research. Besides, the use of a three-dimensional measure of financial performance, primarily considering research undertaken in an emerging market, as a valuable contribution may be observed.

Corporate social responsibility and financial performance: An empirical study on Egyptian banks

Corporate Ownership and Control ◽

10.22495/cocv12i2p9 ◽

2015 ◽

Vol 12 (2) ◽

pp. 107-127 ◽

Cited By ~ 4

Author(s):

Hassan M. Hafez

Keyword(s):

Social Responsibility ◽

Financial Performance ◽

Banking Sector ◽

Statistical Significance ◽

Well Being ◽

Corporate Image ◽

Islamic Banks ◽

Corporate Social ◽

Due to the significance of the banking sector in the stability and welfare of any economy; it is important to constantly monitor and evaluate its performance. Most banks have incorporated social practices in their business operations regardless of the managers’ real intentions of whether it is for the corporate image that might lead to better performance; or it is for the well being of the environment or society overall. Consequently, the purpose of this study is to check if the concept of the CSR is widely applied to local, international and Islamic banks operating in Egypt over the interim period from 2005 to 2013 and if there is a difference in the application. Moreover does CSR really matters and affect banks’ financial performance. Descriptive statistics will be used. The difference in performance will be tested for statistical significance using one way ANOVA tests. The statistical study conducted on 34 banks categorized under Local commercial, International and Islamic banks are operating in Egypt. The relationship is neutral when it is looked at from the ROA measure. The banks’ Corporate Social Responsibility did not have any impact on the financial performance of the banks. However, the relationship was positive when the financial performance perspective was looked from the estimated ROE and NIM; it implies that banks’ corporate social responsibility practices not act as costs to shareholders as they do not reduce the returns. Whether the relationship is positive or neutral, the coefficient for both models are rather small as well as the model that resulted in Neutral relationship had lower standard of error which indicates that it is a better model compared to the model using ROE and NIM as the dependent variable. Therefore relationship is Neutral

The impact of corporate social responsibility on firm performance: Evidence form a MENA country

Corporate Ownership and Control ◽

10.22495/cocv12i1c9p1 ◽

2014 ◽

Vol 12 (1) ◽

pp. 761-774 ◽

Cited By ~ 7

Author(s):

Mohamed A. K. Basuony ◽

Reham I. Elseidi ◽

Ehab K. A. Mohamed

Keyword(s):

Firm Performance ◽

Social Responsibility ◽

Financial Performance ◽

Organization Performance ◽

Cross Sectional ◽

Corporate Social ◽

The Impact ◽

This paper investigates the effect of corporate social responsibility (CSR) on organization performance. It uses cross sectional data from non-financial companies in Egypt that derived from the Kompass Egypt data base. Regression analysis was used to explain the relationship and the effect of CSR on organization financial performance. The findings of this study found that there is a positive and significant effect of CSR on firm performance. Also, all CSR dimensions have significant relationship with firm financial performance. Furthermore, one of the conclusions of this study is that larger and older firms have a positive effect on financial performance (profitability) which will lead to enhance use of better CSR practice