The relation between the CSR and the accounting information system data in Central and Eastern European (CEE) countries – the evidence of the Polish financial institutions

Abstract

Financial institutions play a fundamental role in determining the sustainability of economies, both in developed and developing countries. However, the worldwide financial crises made many financial institutions lost their credibility and CSR engagement has been perceived as a remedy. The aim of this paper is to analyze the interrelation between being socially responsible and tangible financial outcome of financial institutions in one of the CEE countries -Poland. Financial and market data of all the public companies from the financial sector in Poland -116 financial institutions. The analyzed period is 2012-2015 that gives 257 observations. The empirical results reveal that in case of financial institutions in Poland the slack resources are strongly related to CSR involvement, however being socially responsible is not reflected in the bottom line. Polish market and the public are reluctant in considering the CSR importance and the CSR engagement is not rewarded. This undermines the role of CSR commitment in financial institutions in CEECs. It may be assumed that CSR efforts in Poland are not focused properly, or they are not communicated effectively. On the basis of comparative analysis is

A Non-Linear and Disaggregated Approach to Studying the Impact of CSR on Accounting Profitability: Evidence from the Polish Banking Industry

“…Earlier papers [15,32] did not control for an endogeneity problem, as they used a data set from different countries that includes the period of crisis, as well as pre-crisis or post-crisis periods. Some research to avoid this endogeneity problem partially investigated the relationship between CSR and FP before the crisis [22,44] after the crisis [52], or around the crisis [53]. The scope of this study did not exclude the crisis period, so to limit the impact of the financial crisis on the CSR and FP relationship, we focused on banks that were not significantly affected by the crisis.…”

Corporate Social-Environmental Performance versus Financial Performance of Banks in Central and Eastern European Countries

“…The in-depth analysis of literature in terms of confirming indicated hypotheses (e.g., [46]) reveals that although many academics tried to empirically analyze the relation between CSR and CFP, the results of their works are neither coherent nor definite, and with no consensus. The results have often been contradictory, even within a given analysis [45] (p. 6).…”

“…Moreover, these different approaches of CSR are combined with various types of CFP indicators that are based on accounting measures (like return of equity, return of assets, return of sales, current ratio, relation debt/equity, relation EBIT to interest expense, total assets, EPS) and on market-based measures (like Alpha, Beta, relation price to earnings, capital adequacy ratio, mean abnormal returns, risk adjusted return, stock price, relation market value to book value). A combination of these different approaches of CSR and CFP results in multitude of diverse applications and the results of empirical analyses [46] (p. 499).…”

Sustainable Investing Model for Decision Makers (Based On Research of Manufacturing Industry in the Czech Republic)

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