Corporate Social Responsibility and Banks’ Financial Performance

Gangi, Francesco; Mustilli, Mario; Varrone, Nicola; Daniele, Lucia Michela

doi:10.5539/ibr.v11n10p42

Cited by 39 publications

(31 citation statements)

References 79 publications

(114 reference statements)

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“…This situation confirms that a sound management approach allows CSR activities at every stage of the company's operations. Gangi, Mustilli, Varrone, and Daniele (2018) highlight the ongoing impact of CSR disclosure on financial performance in the European banking industry. The study confirmed positives trends in the profitability of banks through active CRS engagement practices.…”

Section: Csr and Banking Sector: Review Of Literaturementioning

confidence: 99%

Nature and Extent of Corporate Social Responsibility in the Indian Banking Sector

Miralam¹,

Jeet

2020

RWE

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Corporate social responsibility (CSR), are societal initiatives of an organization for the community welfare and development. The purpose of the present study is to highlight the corporate social responsibility disclosure of Indian banks for the financial year 2014-15 to 2016-17. The contribution of Indian banks in CSR initiatives has been observed in the form of development of the rural sector, the contribution in basic education, generating more employment opportunities, public healthcare, and sanitation, etc. CSR has been emerged as an important factor in facilitating sustainable growth and valuing the stakeholder and featured as a competitive edge in the banking sector over its rivals and improves the reputation. The results of the study highlighted the compounded CSR spent and sector-wise CSR contributions by the Indian banks during the period of study. A compounded downfall of 7.70 percent has been observed in the growth of the amount required to CSR spent. Simultaneously, the downfall of 8.39 percent in the actual CSR spent has also been recorded in the study. But on the other hand, the amount of CSR spent of all sample banks has been increased by a compound growth of 22.60 percent during the period of study. Besides, the growth analysis of “sector-wise” CSR spent reflected an increase in the compound growth of all sectors by 21.80 percent.

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Section: Csr and Banking Sector: Review Of Literaturementioning

confidence: 99%

Nature and Extent of Corporate Social Responsibility in the Indian Banking Sector

Miralam¹,

Jeet

2020

RWE

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“…However, all the studies focus on non-financial institutions. There are few studies which attempted to examine the relationship between CSR and bank risk (Bolton, 2013;Gambetta et al, 2017;Gangi et al, 2018; among others). Our study significantly contributes to the literature on CSR in banking by being the first piece of research using three specific indicators (namely donations, Loans to Small and Medium Sized Enterprises and Balance of Green Credits) related to banks' corporate social behaviour rather than general CSR indices or scores (Francis et al, 2018).…”

Section: Corporate Social Responsibility and Performancementioning

confidence: 99%

Corporate social behaviour: Is it good for efficiency in the Chinese banking industry?

Fukuyama

Tan

2021

Ann Oper Res

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We develop an output-oriented data envelopment analysis framework to examine the efficiency of Chinese banks over the period 2007–2017 and further test the relationship between efficiency and corporate social responsibility (CSR). We are the first piece of research considering the number of employees as one bank input and potential increase in the number of employees as one CSR indicator. Additionally, we innovatively propose another three specific CSR indicators: namely donation, balance of green credits and loans to small and medium sized enterprises. The results show that the gain from improving allocative output-efficiency by reallocating variable inputs is less than the gain attained by improving technical output-efficiency. Evidence from the second-stage regression analysis shows that the overall indirect technical efficiency is significantly and negatively affected by the volumes of green credits, while an increase in the volumes of donations will improve the indirect allocative efficiency.

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“…Hence, they do not go for under or overinvest in a firm"s performance increasing or damaging policies. Nevertheless, the board impacts indirectly through the channel of financial slacks on firm performance while making investments in highly profitable NPV investment projects (Deutsch, 2005;Gangi & Daniele, 2019).…”

Section: Review Of Literature and Construction Of Hypotheses Corporate Governance And Firm Performancementioning

confidence: 99%

Corporate Governance and Firm Performance: Exploring the Mediating Role of Financial Slack

Tabassam

Khan

2021

JAFEE

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Purpose: Generally, prior literature merely focuses on the direct nexus of governance-performance, while ignoring the precise channels through which corporate governance has an effect on the firm performance. Specifically, this study has taken up this issue to capturing the governance-enterprise valuation following the indirect channel of financial slack in Pakistan. Design/Methodology/Approach: The study examined the corporate governance and enterprise performance linkage, employing financial slack as a mediating variable. A market-based performance measure “Tobin’s Q” and corporate governance index are used. For the years 2005-2019, this empirical study looks at a large number of 180 firms in the Pakistani non-financial sector. For analysis, a variety of alternative specifications and estimate approaches of panel data analysis are used. Findings: The empirical findings support the hypothesis that the association between corporate governance and Tobin’s Q is likely to be significant. The novelty of the study lies in the governance-value linkage considering financial slack resource as mediator. The study also confirms partial mediation of financial slack, between CG and FP. Implications/Originality/Value: This study examines the corporate governance standards in Pakistan, a developing nation with a fledgling stock market. The findings show that the organizations with effective corporate governance principles strive to deliver the best financial and market performance. It emphasizes that efficient corporate governance policies curtail the agency conflicts and costs. It is also argued that firms with effective corporate governance can enhance the efficiency of financial slack resources to enhance the efficiency of the firms.

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Corporate Social Responsibility and Banks’ Financial Performance

Cited by 39 publications

References 79 publications

Nature and Extent of Corporate Social Responsibility in the Indian Banking Sector

Nature and Extent of Corporate Social Responsibility in the Indian Banking Sector

Corporate social behaviour: Is it good for efficiency in the Chinese banking industry?

Corporate Governance and Firm Performance: Exploring the Mediating Role of Financial Slack

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