Effect of corporate social responsibility scores on bank efficiency: The moderating role of institutional context

Forgione, Antonio Fabio; Laguir, Issam; Staglianò, Raffaele

doi:10.1002/csr.1950

Cited by 32 publications

(33 citation statements)

References 66 publications

(70 reference statements)

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“…In contrast, other studies found that the disclosure of environmental activities had a negative impact on banks. For example, Forgione et al [5] used a one-step SFA method to examine ESG and bank efficiency in primarily developed economies from 2013 to 2017. They found the disclosure of environmental activities reduced bank efficiency.…”

Section: Environmentalmentioning

confidence: 99%

“…Efficiency is an important indicator of bank performance which is measured mostly by financial data. Battese and Coelli [4] began to use bank efficiency to measure bank performance, followed by other researchers [5][6][7]. Efficiency is measured by comparing inputs such as cost of borrowed funds, cost of tangible assets and labor, against outputs such as loans, income-generating assets, and deposits.…”

Section: Introductionmentioning

confidence: 99%

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Using Environmental, Social, Governance (ESG) and Financial Indicators to Measure Bank Cost Efficiency in Asia

2021

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Environmental, social, and governance (ESG) practices have been used as non-financial indicators to measure bank performance worldwide in the last decade. The United Nations (UN) has specified 17 Sustainable Development Goals (SDGs) for the implementation of these ESG concepts. However, it remains unclear whether the costs of ESG have exceeded the benefits. The purpose of this study is to examine the impact of ESG on the cost efficiency of developed and developing Asian banks using a two-step approach comprising stochastic frontier analysis (SFA) and stochastic metafrontier analysis (SMF). The data sample from 2015 to 2018 is separated into two groups: 60 Asian developed economies and 85 developing economies. The results show that banks in the developed Asian economies become more cost-efficient through environmentally friendly activities. The banks in the developing Asian economies increase their cost efficiency by socially responsible activities and improved governance. Moreover, banks in the developed Asian economies outperformed those in the developing Asian economies in terms of technology gap ratio (TGR) and metafrontier cost efficiency (MCE). The results of this study benefit not only investors and bank managers but also the entire banking sector and the world economy.

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Section: Environmentalmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Using Environmental, Social, Governance (ESG) and Financial Indicators to Measure Bank Cost Efficiency in Asia

2021

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“…The second approach takes into consideration the argument why corporations should not implement CSR. In this context, it is particularly important to point out that, in the beginnings of the twentieth-century history of CSR, it was treated as a socialist conspiracy [44,66,67]. The sole obligation and responsibility of the corporation is to generate profits for its owners.…”

Section: Discussion and Future Csr Research Opportunitiesmentioning

confidence: 99%

“…Corporate owners/managers are not skilled enough or do not have sufficient time to act toward public policy. This statement releases corporations from accountability for their actions [66,68]. The property rights concern against social responsibility is rooted in neoclassical capitalism.…”

Section: Discussion and Future Csr Research Opportunitiesmentioning

confidence: 99%

Philanthropy and the Contribution of Andrew Carnegie to Corporate Social Responsibility

Janowski

2020

Sustainability

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The idea of corporate social responsibility (CSR) has attracted the interests of both practitioners and scientists, particularly since 1953, when H. R. Bowen published The Social Responsibilities of the Businessman. Over the years, the CSR concept evolved and became a managerial phenomenon; it was applied to different sectors with supposedly excellent effects. Unfortunately, there was discourse around the meaning of CSR. In the world of science, there is no agreement as to the semantic area of CSR. Academics face absolute, undisturbed freedom in the formulation of its elements and definitions. That abovementioned ambiguity determined the situation the recent CSR literature is vague and biased, and an extensive analysis of the latest contributions are lacking. To address this gap, there has been proposed a systematic literature review and bibliometrics of 119 articles published in 45 peer-reviewed, high-quality academic journals and 19 books, from January 1950 to July 2020. There are three objectives of this paper: to analyze the recent CSR definitions in the context of Carnegie’s principles, to identify trends in that field and evaluate the utility of the scientific efforts in the abovementioned context, and to indicate the future research paths in the context of corporate social responsibility.

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“…The majority of research used univariate analysis, namely ratios such as Return on Assets (ROA), Non-Performing Loans (NPL), Return on Equity (ROE), as a measurement of bank performance (Simpson & Kohers, 2002, Soana, 2011, Weber 2017, Chih, Chih, & Chen, 2010, Szegedi, Khan, & Lentner, 2020. However, the use of univariate analysis to assess bank performance has several limitations because it is considered to be affected by earnings management (Forgione, Laguir, & Staglianò, 2020). Thus, efficiency-based performance measurement is the most appropriate measurement for assessing bank performance.…”

Section: Introductionmentioning

confidence: 99%

Does Sustainable Banking Disclosure Affect Bank Efficiency? Evidence from Indonesia

Kosasih

Rahman

Prastiwi

2021

JAI

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Research aims: In Indonesia, there are regulatory developments that require companies to implement a sustainable manner in business activities. Based on Financial Service Authority Regulation No. 51/2017 regarding sustainable finance, Bank BUKU 3 and 4 are the first parties required to run and publish a sustainability report. Therefore, it is essential to evaluate the performance of a bank implementing sustainable banking. This study aims to examine sustainable banking disclosure on bank efficiency in Indonesia.Design/Methodology/Approach: The researchers used 70 observations of banks listed on the Indonesian stock exchange from 2015 to 2019. The method for testing bank efficiency employed Data Envelopment Analysis (DEA). In the second stage of the analysis, the researchers utilized a panel data regression method.Research findings: First, the results showed that commercial banks BUKU 3, 4 in Indonesia were still inefficient. Second, the article also found that sustainable banking disclosure had a positive effect on bank efficiency.Theoretical contribution/Originality: This study's results constitute empirical evidence related to stakeholder theory and provide empirical evidence regarding the effect of sustainable banking on bank efficiency.Practitioner/Policy implication: This research contributes to bank management to implement sustainable banking because it can increase bank efficiency.

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Effect of corporate social responsibility scores on bank efficiency: The moderating role of institutional context

Cited by 32 publications

References 66 publications

Using Environmental, Social, Governance (ESG) and Financial Indicators to Measure Bank Cost Efficiency in Asia

Using Environmental, Social, Governance (ESG) and Financial Indicators to Measure Bank Cost Efficiency in Asia

Philanthropy and the Contribution of Andrew Carnegie to Corporate Social Responsibility

Does Sustainable Banking Disclosure Affect Bank Efficiency? Evidence from Indonesia

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