Corporate social responsibility in the banking industry: Motives and financial performance

How does corporate social responsibility impact banking efficiency: a case in China

“…Furthermore, the parametric techniques were the most widely applied ones in the area (McWilliams & Siegel, 2000;Wu & Shen, 2013). One can fi nd the four contradictory conclusions regarding the impact of CSR upon CFP in the literature, namely a positive impact (Ohene- Asare & Asmild, 2012), a negative impact (Winchester et al, 2008), an arbitrary impact (Lee & Park, 2009), and no impact (Soana, 2011).…”

The "Virtuous Circle" Between Corporate Social Performance and Corporate Financial Performance in the European Banking Sector

“…Wu and Shen (2013) suggest that the nature of bank activity, characterized by the use of resources obtained from non-proprietary stakeholders, determines the obligation to provide feedback to the community more frequently than other industries.…”

“…Banks are aware of the specificity of their business, based on the relationship of trust with the public and this awareness explains the presence of a CSR section in the annual financial statements (Wu and Shen, 2013). Following one of the most profound financial crises in history, which directly involved all the major banks in the world and undermined their credibility and reputation, CSR is perceived as a strategy to re-establish bank's credibility (Hsu, 2012;Schultz, Castelló, and Morsing, 2013).…”

“…Scholtens and Dam (2007) compare the commitment in CSR policies, observing that the banks that adopt the Equator Principles pursue important CSR policies but register lower Return on assets (Roa). Wu and Shen (2013) test the relationship between the CSP and CFP in the global banking sector, analysing the reasons that drive banks to adopt CSP measures: strategic, altruistic and greenwashing reasons. The authors point out the existence of a positive, uncertain or neutral relationship with the financial performance, according to the strategic reasons that lead the bank managers to undertake socially responsible activities and policies.…”

“…The size of the company-measured by the logarithm of total assets (lnTA) (Carnevale and Mazzuca, 2014;Lo and Sheu, 2007;Simpson and Kohers, 2002;Waddock and Graves, 1997a)-is considered a determinant of social and financial performance (Ullman, 1985). Further control variables, classified by Wu and Shen (2013) among the bank's main characteristics, are the ratio of loans to deposits (LoanDep), the cost to income ratio (CostInco) and, finally, the ratio between reserves for loan losses and non-performing loans (Cover). Finally, we consider the logarithm of the total of intangible resources (lnINT), which are fundamental for the performance of banking activities (Forcadell and Aracil, 2017).…”