Corporate Social Responsibility and Financial Performance Amongst Rural and Community Banks in Ghana

Asiedu, Michael Amoh; Yalley, Emma; Boakye, Kwame Owusu; Oduro, Richard; Adu, Isaac Nyarko

doi:10.31014/aior.1992.03.03.264

Cited by 4 publications

(8 citation statements)

References 57 publications

(75 reference statements)

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“…Financial performance serves as the model's dependent variable. Both profitability and stock market return might be used as performance indicators based on the previous study in accordance with earlier research like (Asiedu et al, 2020).…”

Section: Methodsmentioning

confidence: 65%

“…It should be highlighted that Ghana's inconclusive CSR-financial performance nexus is similar to the worldwide scenario. While most previous studies (Adu, 2020;Hevi et al, 2018;Owusu, 2017) discovered a positive association, a few discovered a negative relationship (Marfo et al, 2015). This means that there is an empirical gap in the CSRfinancial performance nexus that needs to be addressed in the Ghanaian context, which is what this study aims to do.…”

mentioning

confidence: 80%

“…While sustaining the company's profitability, CSR key objective is to raise people's quality of life both inside and outside the organisation. According to Asiedu et al (2020), commercial businesses forced by profit‐driven behaviour to veer away from purely economic objectives and towards societal practices. This includes corporate social responsibility (CSR), human resource management and moral marketing.…”

Section: Introductionmentioning

confidence: 99%

“…The majority of earlier studies in Africa discovered a favourable connection between CSR and financial performance (Adu, 2020;Anlesinya et al, 2014;Gichohi, 2016;Gololo, 2016;Hevi et al, 2018;Mansaray et al, 2017;Muritala, 2013;Nyeadi et al, 2018;Owusu, 2017). However, the empirical literature shows that the CSR-financial performance link is not always positive; some previous studies in Europe, for example, found a negative relationship (Bråtenius & Melin, 2015;Johansson et al, 2015), while others in Asia found a negative relationship between CSR and financial performance (Hermawan & Mulyawan, 2014).…”

mentioning

confidence: 99%

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Corporate social responsibility and financial performance nexus: Empirical evidence from Ghana

Saeed,

Mudliar,

Kumari

2023

Corp Soc Responsibility Env

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This paper investigates the relationship between corporate social responsibility and the financial performance of Ghana's publicly listed financial institutions. Twelve listed financial institutions on the Ghana Stock Exchange (GSE) provided secondary data during a 10‐year period (2010–2019). The data were examined using descriptive statistics, correlation matrix, rotated factors, factor score efficiency, and regression results. Corporate social responsibility (CSR) has a favourable effect on profitability and stock returns, according to the data. This demonstrate that while CSR enhances businesses' capacity for financial success, it should not be viewed as an optional activity but rather be included in long‐term business strategies. The study recommends management of financial institutions to ensure CSR activities are formally inbuilt into their policy statements and backed with an effective budget. The study further recommends more publicity be given to CSR programs undertaken by financial institutions to assist them get the needed potential benefits in enhancing their ROE and ROA. This study serves as a guide for policymakers and reference for future research on the effect of CSR on company performance in Sub‐Saharan Africa.

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Section: Methodsmentioning

confidence: 65%

mentioning

confidence: 80%

Section: Introductionmentioning

confidence: 99%

mentioning

confidence: 99%

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Corporate social responsibility and financial performance nexus: Empirical evidence from Ghana

Saeed,

Mudliar,

Kumari

2023

Corp Soc Responsibility Env

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“…As such, Tsamenyi, Enninful-Adu, and Onumah (2007, 330) and Asiedu et al (2020Asiedu et al ( , 1089 believe that since developing countries are often challenged with problems of weak legal controls, uncertain economies, frequent government intervention and protection of investors, it becomes even more necessary for them to adopt effective corporate governance structures.…”

Section: Development Of the Concept Of Corporate Governancementioning

confidence: 99%

Factors which influence sustainable implementation of corporate governance systems in an institution of higher learning

Assan

2021

SAJHE

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As the demand for higher education continues to grow and as governments acknowledge their role in promoting economic development, it becomes increasingly important to ensure that higher education systems are managed in an effective way. The study examined the factors which influence effective and sustainable corporate governance in a merged University. The study was intended to create awareness of the challenges and opportunities regarding perceived conflicts in a new institution of Higher Learning with respect to management of transformation in higher education A mixed method approach was used and, as a result, data were collected using a questionnaire and interview instruments. The sample was made up of 120 randomly selected staff and students. The research established that issues of language and culture, effective communication as well as stakeholders' consultations among others are factors which influence effective corporate governance. The study recommended that more should be done to improve the culture, ethos and the practices that would enhance a sustainable corporate governance system.

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The moderating role of board gender diversity in ESG and firm performance: Empirical evidence from Gulf countries

Alahdal,

Hashim,

Almaqtari

et al. 2024

Bus Strat Dev

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The study aims to analyze the impact of environmental, social, and governance performance (ESGP) on firm performance (FP) in the Gulf countries. Furthermore, this study examines how the number of female members on the board affects the relationship between ESGP and FP. This study uses balanced panel data of 424 firm‐year observations from 106 Gulf non‐financial listed firms from 2018 to 2021. The results show that the effect of ESGP and social performance (SP) on return on equity (ROE) is positive and statistically significant. SP and governance performance (GP) reveal a positive impact on ROE. However, a negative impact is exhibited instead for Tobin's Q (TQ). Conversely, environmental performance (EP) positively affects both ROE and TQ. Besides that, the diversity of board gender significantly and positively strengthens the relationships of ESGP, EP, SP, and GP with FP. The study concludes that policymakers in the Gulf countries and public company executives can use the suggestions from this research to change existing corporate governance rules to encourage more ESG performance and board diversity. We also emphasize the need to consider ESG performance and the diversity of the board when making plans to meet societal expectations and reach business goals. To the best of our knowledge, this study is among only a few that have investigated the effect of board gender diversity on the impact of ESGP on FP in the context of Gulf countries.

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Corporate Social Responsibility and Financial Performance Amongst Rural and Community Banks in Ghana

Abstract: The Journal of Economics and Business is an Open Access publication. It may be read, copied, and distributed free of charge according to the conditions of the Creative Commons Attribution 4.0 International license.

Cited by 4 publications

References 57 publications

Corporate social responsibility and financial performance nexus: Empirical evidence from Ghana

Corporate social responsibility and financial performance nexus: Empirical evidence from Ghana

Factors which influence sustainable implementation of corporate governance systems in an institution of higher learning

The moderating role of board gender diversity in ESG and firm performance: Empirical evidence from Gulf countries

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