Impact of corporate social responsibility on bank performance in emerging markets

dc.authoridISIK, Ozcan/0000-0003-2230-8738
dc.authoridRazzaq, Kamran/0000-0002-1738-3744
dc.contributor.authorShabir, Mohsin
dc.contributor.authorPing, Jiang
dc.contributor.authorIsik, Ozcan
dc.contributor.authorRazzaq, Kamran
dc.date.accessioned2024-10-26T18:10:53Z
dc.date.available2024-10-26T18:10:53Z
dc.date.issued2024
dc.departmentSivas Cumhuriyet Üniversitesi
dc.description.abstractPurposeThis study investigates the relationship between corporate social responsibility (CSR) and financial performance of the banking sector from the prospective of emerging countries.Design/methodology/approachThis study obtained balance sheet and income statement data for 173 banks in 20 emerging countries from the Bankscope database from 2005-2018. The CSR-related data were taken from the Thomson Reuters ASSET4 database. Moreover, macroeconomic controls such as GDP per capita, inflation, and financial development are attained from the GFDD. The series of institutional quality indices (Political Stability, Rule of Law, Control of Corruption, Government Effectiveness, and Regulatory Quality) is obtained from the WGI. At the same time, national culture and bank regulation are attained from Hofstede Insights and Barth et al. (2013). We used the panel fixed-effects model in our baseline estimations, while 2SLS and GMM were applied to control for endogeneity.FindingsThe finding shows that CSR activities significantly improve bank performance, but the effect varies across the bank. Only environmentally friendly activities have shown a significant positive relationship with banking performance for CSR dimensions. However, the social and government dimensions did not significantly affect bank performance. Moreover, a sound institutional and regulatory environment and national norms play an important role in the nexus of CSR activities and bank performance.Originality/valueThis study provides empirical evidence that sheds light on CSR and bank performance in an emerging market context.
dc.identifier.doi10.1108/IJOEM-02-2023-0208
dc.identifier.issn1746-8809
dc.identifier.issn1746-8817
dc.identifier.scopus2-s2.0-85187907791
dc.identifier.scopusqualityQ2
dc.identifier.urihttps://doi.org/10.1108/IJOEM-02-2023-0208
dc.identifier.urihttps://hdl.handle.net/20.500.12418/30428
dc.identifier.wosWOS:001183488000001
dc.identifier.wosqualityN/A
dc.indekslendigikaynakWeb of Science
dc.indekslendigikaynakScopus
dc.language.isoen
dc.publisherEmerald Group Publishing Ltd
dc.relation.ispartofInternational Journal of Emerging Markets
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanı
dc.rightsinfo:eu-repo/semantics/closedAccess
dc.subjectCorporate social responsibility (CSR)
dc.subjectBank performance
dc.subjectEmerging economics
dc.titleImpact of corporate social responsibility on bank performance in emerging markets
dc.typeArticle

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