There have been numerous studies on corporate social responsibility (CSR) and its relation to corporate performance. Recently, studies in this field have paid particular attention to the method of measurement in order to identify the CSR activities. One of the widely recognized measures to proxy CSR is the Environmental, Social, and Governance (ESG) score. This paper examines the relationship between Corporate Social Responsibility (CSR) and corporate profit by testing the ESG performance score on the firm's Financial Performance (FP), specifically for Korea Stock Market (KOSPI) listed firms in the period of 2008~2014. We use three separate individual Environmental, Social and Corporate Governance (ESG) disclosure scores from Bloomberg for the CRS proxy measure, as well as the Return on Equity (ROE), Market-to-Book Ratio (MBR) and Stock Return for the FP measures. We found that the ESG disclosure scores (the measures of environmental, social, and governance responsibility performance) in the Korean corporations shows diversified results. Particularly, the environmental responsibility performance score presents a negative (or U curve) relationship with FP, whereas the governance responsibility performance score presents a positive (or inverse U curve) relationship with FP. On the other hand, we did not find any statistically significant evidence of a relationship between the social responsibility performance score and FP.

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This paper theoretically examines the impacts of the asymmetric expansion of the Fintech-based prepaid services (e.g. Alipay, Cashbee, Payco) on competition and stability in the banking sector. Specifically, Fintech prepaid services can substitute bank deposits in retail payments service but is less likely to penetrate into loan service. Our model focuses on such asymmetric competition pressure from the entry of Fintech firms on the banks' operations. We find that if the expansion of Fintech prepaid services concentrate on the deposit market but not on the loan provision, then banks are likely to take more risky loans. Our finding is interesting because our result in the risky loan is the same as what Allen and Gale (2000) finds, even though our model is based on Boyd and De Nicolo (2006) which has the opposite finding. The reason is due to the introduction of asymmetric competition environment into Boyd and De Nicolo (2006). On the contrary, if the competition becomes symmetric in both deposit and loan market by allowing equally enhanced competition into the loan market, the Fintech's entry will possibly enhance financial stability by making banks taking less risky loan. The supervisory authorities need to take this point into account when they make their policies.

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