Corporate social performance and financial performance relationship in banks: sub-industry and cross-cultural perspective
Abstract
The aim of the paper is to reveal how corporate social performance (CSP) affects market value and earnings capabilities of companies from banking industry: Banking Services and Investment Banking & Investment Services sub-industries in particular. For Banking Services, the research was extended to a link between corporate social performance and corporate financial performance (CSP-CFP) by classifying institutions into clusters based on a type of culture which dominates in a bank’s country of origin. Regression analysis was run on a unique dataset, which comprehensively captures the contextuality of CSP, measured with corporate governance, environmental and social characteristics. This research uses Refinitiv database of ESG Scores as CSP proxy for banks from all over the world in the period of 2009–2016. The results confirm that environmental performance and social performance have negative impact on CFP in banks and partly confirmed that governance performance has a positive impact on their CFP. This research proves that banks’ CSP performance and the CSP-CFP relationship differs with regard to the type of bank operations as well as the associated culture. This is an important conclusion for investors seeking to increase value of their holdings and bank management who wants to foster bank’s profitability through CSP-related decisions.
First published online 28 December 2020
Keyword : corporate social performance, banking industry performance, financial performance, cultural differences, cross-cultural perspective, Tobin’s q, ROA, CSP-CFP link, ESG, social responsibility
How to Cite
Daszyńska-Żygadło, K., Słoński, T., & Dziadkowiec, A. (2021). Corporate social performance and financial performance relationship in banks: sub-industry and cross-cultural perspective. Journal of Business Economics and Management, 22(2), 424-444. https://doi.org/10.3846/jbem.2020.13892
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Adnan, S. M., Hay, D., & van Staden, C. J. (2018). The influence of culture and corporate governance on corporate social responsibility disclosure: A cross country analysis. Journal of Cleaner Production, 198, 820–832. https://doi.org/10.1016/j.jclepro.2018.07.057
Alexander, G. J., & Buchholz, R. A. (1978). Corporate social performance and stock market performance. The Academy of Management Journal, 21(3), 479–486. https://doi.org/10.5465/255728
Al-Tuwaijri, S. A., Christensen, T. E., & Hughes, K. E. (2004). The relations among environmental disclosure, environmental performance, and economic performance: A simultaneous equations approach. Accounting, Organizations and Society, 29(5–6), 447–471. https://doi.org/10.1016/S0361-3682(03)00032-1
Aupperle, K. E., Carroll, A. B., & Hatfield, J. D. (1985). An empirical examination of the relationship between corporate social responsibility and profitability. The Academy of Management Journal, 28(2), 446–463. https://doi.org/10.2307/256210
Barth, M. E., Beaver, W. H., & Landsman, W. R. (1998). Relative valuation roles of equity book value and net income as a function of financial health. Journal of Accounting and Economics, 25(1), 1–34. https://doi.org/10.1016/S0165-4101(98)00017-2
Beck, T., Demirgü-Kunt, A., & Levine, R. (2010). Financial institutions and markets across countries and over time: The updated financial development and structure database. The World Bank Economic Review, 24(1), 77–92. https://doi.org/10.1093/wber/lhp016
Bohas, A., & Poussing, N. (2016). An empirical exploration of the role of strategic and responsive corporate social responsibility in the adoption of different Green IT strategies. Journal of Cleaner Production, 122, 240–251. https://doi.org/10.1016/j.jclepro.2016.02.029
Bouma, J. J., Jeucken, M., & Klinkers, L. (2001). Sustainable banking: The greening of finance. Routledge.
Cheung, A. W. K., & Roca, E. (2013). The effect on price, liquidity and risk when stocks are added to and deleted from a sustainability index: Evidence from the Asia Pacific context. Journal of Asian Economics, 24, 51–65. https://doi.org/10.1016/j.asieco.2012.08.002
Chih, H. L., Chih, H. H., & Chen, T. Y. (2010). On the determinants of corporate social responsibility: International evidence on the financial industry. Journal of Business Ethics, 93(1), 115–135. https://doi.org/10.1007/s10551-009-0186-x
Consolandi, C., Jaiswal-Dale, A., Poggiani, E., & Vercelli, A. (2009). Global standards and ethical stock indexes: The case of the Dow Jones Sustainability Stoxx Index. Journal of Business Ethics, 87(Suppl. 1), 185–197. https://doi.org/10.1007/s10551-008-9793-1
Cornett, M. M., Erhemjamts, O., & Tehranian, H. (2013). Greed or good deeds: An examination of the relation between corporate social responsibility and the financial performance of U.S. Commercial Banks around the Financial Crisis. Journal of Banking & Finance, 70, 137–159. https://doi.org/10.1016/j.jbankfin.2016.04.024
Cuesta-González, M., Muñoz-Torres, M. J., & Fernández-Izquierdo, M. Á. (2006). Analysis of social performance in the Spanish financial industry through public data. A proposal. Journal of Business Ethics, 69(3), 289–304. https://doi.org/10.1007/s10551-006-9091-8
Damodaran, A. (2012). Investment valuation: Tools and techniques for determining the value of any asset. John Wiley & Sons Inc.
Daszyńska-Żygadlo, K., Słoński, T., & Zawadzki, B. (2016). The market value of CSR performance across sectors. Engineering Economics, 27(2), 230–238. https://doi.org/10.5755/j01.ee.27.2.13480
Davis, G. F., & Kim, S. (2015). Financialization of the economy. Annual Review of Sociology, 41, 203– 221. https://doi.org/10.1146/annurev-soc-073014-112402
Eccles, R. G., & Serafeim, G. (2013, May 15). Sustainability in financial services is not about being green. https://hbr.org
Elsayed, K., & Paton, D. (2005). The impact of environmental performance on firm performance: Static and dynamic panel data evidence. Structural Change and Economic Dynamics, 16(3), 395–412. https://doi.org/10.1016/j.strueco.2004.04.004
Erhemjamts, O., Li, Q., & Venkateswaran, A. (2013). Corporate social responsibility and its impact on firms’ investment policy, organizational structure, and performance. Journal of Business Ethics, 118(2), 395–412. https://doi.org/10.1007/s10551-012-1594-x
Esteban-Sanchez, P., Cuesta-Gonzalez, M., & Paredes-Gazquez, J. D. (2017). Corporate social performance and its relation with corporate financial performance: International evidence in the banking industry. Journal of Cleaner Production, 162, 1102–1110. https://doi.org/10.1016/j.jclepro.2017.06.127
EU High-Level Expert Group on Sustainable Finance. (2018). Financing a Sustainable European Economy. https://www.ecb.europa.eu
European Central Bank. (2010). Beyond ROE – How to measure bank performance. https://www.ecb.europa.eu
European Parliament, & Council of the European Union. (2020). Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088. https://eur-lex.europa.eu/eli/reg/2020/852/oj
Fijałkowska, J., Zyznarska-Dworczak, B., & Garsztka, P. (2018). Corporate social-environmental performance versus financial performance of banks in Central and Eastern European Countries. Sustainability, 10(3), 772. https://doi.org/10.3390/su10030772
Freeman, R. E. (1984). Strategic management: A strategic approach. Pitman.
Friede, G., Busch, T., & Bassen, A. (2015). ESG and financial performance: aggregated evidence from more than 2000 empirical studies. Journal of Sustainable Finance & Investment, 5(4), 210–233. https://doi.org/10.1080/20430795.2015.1118917
Fu, L., Parkash, M., & Singhal, R. (2017). Tobin’s q ratio and firm performance. International Research Journal of Appllied Finance, 7(4), 1–10.
Galant, A., & Cadez, S. (2017). Corporate social responsibility and financial performance relationship: A review of measurement approaches. Economic Research-Ekonomska Istraživanja, 30(1), 676–693. https://doi.org/10.1080/1331677X.2017.1313122
Gallén, M. L., & Peraita, C. (2017). The effects of national culture on corporate social responsibility disclosure: A cross-country comparison. Applied Economics, 50(27), 2967–2979. https://doi.org/10.1080/00036846.2017.1412082
Garcia-Castro, R., Ariño, M. A., & Canela, M. A. (2010). Does social performance really lead to financial performance? Accounting for endogeneity. Journal of Business Ethics, 92(1), 107–126. https://doi.org/10.1007/s10551-009-0143-8
Garriga, E., & Melé, D. (2004). Corporate social responsibility theories: Mapping the territory. Journal of Business Ethics, 53(1–2), 51–71. https://doi.org/10.1023/B:BUSI.0000039399.90587.34
Gonenc, H., & Scholtens, B. (2019). Responsibility and performance relationship in the banking industry. Sustainability, 11(12), 3329. https://doi.org/10.3390/su11123329
Halkos, G., & Skouloudis, A. (2017). Revisiting the relationship between corporate social responsibility and national culture: A quantitative assessment. Management Decision, 55(3), 595–613. https://doi.org/10.1108/MD-12-2016-0868
Hasan, Z. (2009). Corporate governance: Western and Islamic perspectives. International Review of Business Research Papers, 5(1), 277–293.
Hofstede, G. (1983). The cultural relatively of organizational practices and theories. Journal of International Business Studies, 14, 75–89. https://doi.org/10.1057/palgrave.jibs.8490867
Hofstede, G. (2011). Dimensionalizing cultures: The Hofstede model in context. Online Readings in Psychology and Culture, 2(1), 8. https://doi.org/10.9707/2307-0919.1014
Hsiao, C. (2007). Panel data analysis-advantages and challenges. Test, 16(1), 1–22. https://doi.org/10.1007/s11749-007-0046-x
Hurley, R. (2014). Understanding trust in banks. International Journal of Bank Marketing, 32(5), 348– 366. https://doi.org/10.1108/IJBM-01-2014-0003
Jan, A., Marimuthu, M., & Mat Isa, M. P. B. M. (2019). The nexus of sustainability practices and financial performance: From the perspective of Islamic banking. Journal of Cleaner Production, 228, 703–717. https://doi.org/10.1016/j.jclepro.2019.04.208
Jensen, M. (2002). Value maximisation, stakeholder theory, and the corporate objective function. Business Ethics Quarterly, 12(2), 235–256. https://doi.org/10.2307/3857812
Jo, H., Kim, H., & Park, K. (2014). Corporate environmental responsibility and firm performance in the financial services sector. Journal of Business Ethics, 131(2), 257–284. https://doi.org/10.1007/s10551-014-2276-7
Kim, W. S., & Oh, S. (2019) Corporate social responsibility, business groups and financial performance: A study of listed Indian firms. Economic Research-Ekonomska Istraživanja, 32(1), 1777–1793. https://doi.org/10.1080/1331677X.2019.1637764
Kreiser, P. M., Marino, L. D., Dickson, P., & Weaver, K. M. (2010). Cultural influences on entrepreneurial orientation: The impact of national culture on risk taking and proactiveness in SMEs. Entrepreneurship Theory and Practice, 34(5), 959–984. https://doi.org/10.1111/j.1540-6520.2010.00396.x
Laguir, I., Marais, M., El Baz, J., & Stekelorum, R. (2018). Reversing the business rationale for environmental commitment in banking: Does financial performance lead to higher environmental performance? Management Decision, 56(2), 358–375. https://doi.org/10.1108/MD-12-2016-0890
Lankoski, L. (2000). Determinants of environmental profit: An analysis of the firm-level relationship between environmental performance and economic performance [Doctoral dissertation]. https://aaltodoc.aalto.fi/handle/123456789/2510
Lauesen, L. M. (2013). CSR in the aftermath of the financial crisis. Social Responsibility Journal, 9(4), 641–663. https://doi.org/10.1108/SRJ-11-2012-0140
Levine, R. (2005). Finance and growth: Theory and evidence. In P. Aghion & S. Durlauf (Eds.), Handbook of economic growth (pp. 865–934). Elsevier. https://doi.org/10.1016/S1574-0684(05)01012-9
Lins, K. V., Servaes, H., & Tamayo, A. (2017). Social capital, trust, and firm performance: The value of corporate social responsibility during the Financial Crisis. The Journal of Finance, 72(4), 1785–1824. https://doi.org/10.1111/jofi.12505
Maali, B., Casson, P., & Napier, C. (2006). Social reporting by Islamic banks. Abacus, 42(2), 266–289.
Mallin, C., Farag, H., & Ow-Yong, K. (2014). Corporate social responsibility and financial performance in Islamic banks. Journal of Economic Behavior & Organization, 103(Suppl.), S21–S38. https://doi.org/10.1016/j.jebo.2014.03.001
McWilliams, A., & Siegel, D. (2000). Corporate social responsibility and financial performance: Correlation or misspecification? Strategic Management Journal, 21(5), 603–609. https://doi.org/10.1002/(SICI)1097-0266(200005)21:5<603::AID-SMJ101>3.0.CO;2-3
Michelon, G., Boesso, G., & Kumar, K. (2013). Examining the link between strategic corporate social responsibility and company performance: An analysis of the best corporate citizens. Corporate Social Responsibility and Environmental Management, 20(2), 81–94. https://doi.org/10.1002/csr.1278
Miras-Rodríguez, M., Carrasco-Gallego, A., & Escobar-Pérez, B. (2015). Are socially responsible behaviors paid off equally? A cross-cultural analysis. Corporate Social Responsibility and Environmental Management, 22(4), 237–256. https://doi.org/10.1002/csr.1344
Nelling, E., & Webb, E. (2009). Corporate social responsibility and financial performance: The “virtuous circle” revisited. Review of Quanitative Finance and Accounting, 32(2), 197–209. https://doi.org/10.1007/s11156-008-0090-y
Ortas, E., Álvarez, I., Jaussaud, J., & Garayar, A. (2015). The impact of institutional and social context on corporate environmental, social and governance performance of companies committed to voluntary corporate social responsibility initiatives. Journal of Cleaner Production, 108(A), 673–684. https://doi.org/10.1016/j.jclepro.2015.06.089
Peloza, J. (2009). The challenge of measuring financial impacts from investments in corporate social performance. Journal of Management, 35(6), 1518–1541. https://doi.org/10.1177/0149206309335188
Peng, C. W., & Yang, M. L. (2014). The effect of corporate social performance on financial performance: The moderating effect of ownership concentration. Journal of Business Ethics, 123(1), 171–182. https://doi.org/10.1007/s10551-013-1809-9
Peng, Y.-S., Dashdeleg, A.-U., & Chih, H.-L. (2014). National culture and firm’s CSR engagement: A cross-nation study. Journal of Marketing and Management, 5(1), 38–49.
Porter, M. E., & Kramer, M. R. (2006). Strategy & society: The link between competitive advantage and corporatesocial responsibility. Harvard Business Review, 84, 78–92.
Preston, L. E., & O’Bannon, D. P. (1997). The corporate social-financial performance relationship: A typology and analysis. Business & Society, 36(4), 419–429. https://doi.org/10.1177/000765039703600406
Ramzan, M., Amin, M., & Abbas, M. (2021). How does corporate social responsibility affect financial performance, financial stability, and financial inclusion in the banking sector? Evidence from Pakistan. Research in Internation Business and Finance, 55, 101314. https://doi.org/10.1016/j.ribaf.2020.101314
Ringov, D., & Zollo, M. (2007). The impact of national culture on corporate social performance. Corporate Governance, 7(4), 476–485. https://doi.org/10.1108/14720700710820551
Rodgers, W., Choy, H. L., & Guiral, A. (2013). Do investors value a firm’s commitment to social activities? Journal of Business Ethics, 114(4), 607–623. https://doi.org/10.1007/s10551-013-1707-1
Rowley, T., & Berman, S. (2000). A brand new brand of corporate social performance. Business & Society, 39(4), 397–418. https://doi.org/10.1177/000765030003900404
Saeidi, S. P., Sofian, S., Saeidi, P., Saeidi, S. P., & Saaeidi, S. A. (2015). How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction. Journal of Business Research, 68(2), 341–350. https://doi.org/10.1016/j.jbusres.2014.06.024
Schneider, S. C., & De Meyer, A. (1991). Interpreting and responding to strategic issues: The impact of national culture. Strategic Management Journal, 12(4), 307–320. https://doi.org/10.1002/smj.4250120406
Scholtens, B. (2009). Corporate social responsibility in the international banking industry. Journal of Business Ethics, 86(2), 159–175. https://doi.org/10.1007/s10551-008-9841-x
Shakil, M. H., Mahmood, N., Tasnia, M., & Munim, Z. H. (2019). Do environmental, social and governance performance affect the financial performance of banks? A cross-country study of emerging market banks. Management of Environmental Quality, 30(6), 1331–1344. https://doi.org/10.1108/MEQ-08-2018-0155
Shen, C. H., Wu, M. W., Chen, T. H., & Fang, H. (2016). To engage or not to engage in corporate social responsibility: Empirical evidence from global banking sector. Economic Modelling, 55, 207–225. https://doi.org/10.1016/j.econmod.2016.02.007
Shiller, R. J. (2013). Reflections on finance and the good society. American Economic Review, 103(3), 402–405. https://doi.org/10.1257/aer.103.3.402
Simpson, W. G., & Kohers, T. (2002). The link between corporate social and financial performance: Evidence from the banking industry. Journal of Business Ethics, 35(2), 97–109. https://doi.org/10.1023/A:1013082525900
Siueia, T. T., Wang, J., & Deladem, T. G. (2019). Corporate social responsibility and financial perfroamcne: A comparative study in the Sub-Saharan Africa banking sector. Journal of Cleaner Production, 226, 658–668. https://doi.org/10.1016/j.jclepro.2019.04.027
Soana, M. G. (2011). The relationship between corporate social performance and corporate financial performance in the banking sector. Journal of Business Ethics, 104(1), 133–148. https://doi.org/10.1007/s10551-011-0894-x
Thanetsunthorn, N. (2015). The impact of national culture on corporate social responsibility: Evidence from cross-regional comparison. Asian Journal of Business Ethics, 4, 35–56. https://doi.org/10.1007/s13520-015-0042-2
Tsui, J., & Shieh, T. (2003). Corporate governance in emerging markets: An Asian perspective. In F. D. S. Choi (Ed.), International finance and accounting handbook. John Wiley & Sons Inc.
Waddock, S. A., & Graves, S.B . (1997). The corporate social performance-financial performance link. Strategic Management Journal, 18(4), 303–319. https://doi.org/10.1002/(SICI)1097-0266(199704)18:4<303::AID-SMJ869>3.0.CO;2-G
Wang, Y., & Berens, G. (2015). The impact of four types of corporate social performance on reputation and financial performance. Journal of Business Ethics, 131(2), 337–359. https://doi.org/10.1007/s10551-014-2280-y
Zyznarska-Dworczak, B. (2018). The development perspectives of sustainable management accounting in Central and Eastern European countries. Sustainability, 10(5), 1445. https://doi.org/10.3390/su10051445
Alexander, G. J., & Buchholz, R. A. (1978). Corporate social performance and stock market performance. The Academy of Management Journal, 21(3), 479–486. https://doi.org/10.5465/255728
Al-Tuwaijri, S. A., Christensen, T. E., & Hughes, K. E. (2004). The relations among environmental disclosure, environmental performance, and economic performance: A simultaneous equations approach. Accounting, Organizations and Society, 29(5–6), 447–471. https://doi.org/10.1016/S0361-3682(03)00032-1
Aupperle, K. E., Carroll, A. B., & Hatfield, J. D. (1985). An empirical examination of the relationship between corporate social responsibility and profitability. The Academy of Management Journal, 28(2), 446–463. https://doi.org/10.2307/256210
Barth, M. E., Beaver, W. H., & Landsman, W. R. (1998). Relative valuation roles of equity book value and net income as a function of financial health. Journal of Accounting and Economics, 25(1), 1–34. https://doi.org/10.1016/S0165-4101(98)00017-2
Beck, T., Demirgü-Kunt, A., & Levine, R. (2010). Financial institutions and markets across countries and over time: The updated financial development and structure database. The World Bank Economic Review, 24(1), 77–92. https://doi.org/10.1093/wber/lhp016
Bohas, A., & Poussing, N. (2016). An empirical exploration of the role of strategic and responsive corporate social responsibility in the adoption of different Green IT strategies. Journal of Cleaner Production, 122, 240–251. https://doi.org/10.1016/j.jclepro.2016.02.029
Bouma, J. J., Jeucken, M., & Klinkers, L. (2001). Sustainable banking: The greening of finance. Routledge.
Cheung, A. W. K., & Roca, E. (2013). The effect on price, liquidity and risk when stocks are added to and deleted from a sustainability index: Evidence from the Asia Pacific context. Journal of Asian Economics, 24, 51–65. https://doi.org/10.1016/j.asieco.2012.08.002
Chih, H. L., Chih, H. H., & Chen, T. Y. (2010). On the determinants of corporate social responsibility: International evidence on the financial industry. Journal of Business Ethics, 93(1), 115–135. https://doi.org/10.1007/s10551-009-0186-x
Consolandi, C., Jaiswal-Dale, A., Poggiani, E., & Vercelli, A. (2009). Global standards and ethical stock indexes: The case of the Dow Jones Sustainability Stoxx Index. Journal of Business Ethics, 87(Suppl. 1), 185–197. https://doi.org/10.1007/s10551-008-9793-1
Cornett, M. M., Erhemjamts, O., & Tehranian, H. (2013). Greed or good deeds: An examination of the relation between corporate social responsibility and the financial performance of U.S. Commercial Banks around the Financial Crisis. Journal of Banking & Finance, 70, 137–159. https://doi.org/10.1016/j.jbankfin.2016.04.024
Cuesta-González, M., Muñoz-Torres, M. J., & Fernández-Izquierdo, M. Á. (2006). Analysis of social performance in the Spanish financial industry through public data. A proposal. Journal of Business Ethics, 69(3), 289–304. https://doi.org/10.1007/s10551-006-9091-8
Damodaran, A. (2012). Investment valuation: Tools and techniques for determining the value of any asset. John Wiley & Sons Inc.
Daszyńska-Żygadlo, K., Słoński, T., & Zawadzki, B. (2016). The market value of CSR performance across sectors. Engineering Economics, 27(2), 230–238. https://doi.org/10.5755/j01.ee.27.2.13480
Davis, G. F., & Kim, S. (2015). Financialization of the economy. Annual Review of Sociology, 41, 203– 221. https://doi.org/10.1146/annurev-soc-073014-112402
Eccles, R. G., & Serafeim, G. (2013, May 15). Sustainability in financial services is not about being green. https://hbr.org
Elsayed, K., & Paton, D. (2005). The impact of environmental performance on firm performance: Static and dynamic panel data evidence. Structural Change and Economic Dynamics, 16(3), 395–412. https://doi.org/10.1016/j.strueco.2004.04.004
Erhemjamts, O., Li, Q., & Venkateswaran, A. (2013). Corporate social responsibility and its impact on firms’ investment policy, organizational structure, and performance. Journal of Business Ethics, 118(2), 395–412. https://doi.org/10.1007/s10551-012-1594-x
Esteban-Sanchez, P., Cuesta-Gonzalez, M., & Paredes-Gazquez, J. D. (2017). Corporate social performance and its relation with corporate financial performance: International evidence in the banking industry. Journal of Cleaner Production, 162, 1102–1110. https://doi.org/10.1016/j.jclepro.2017.06.127
EU High-Level Expert Group on Sustainable Finance. (2018). Financing a Sustainable European Economy. https://www.ecb.europa.eu
European Central Bank. (2010). Beyond ROE – How to measure bank performance. https://www.ecb.europa.eu
European Parliament, & Council of the European Union. (2020). Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088. https://eur-lex.europa.eu/eli/reg/2020/852/oj
Fijałkowska, J., Zyznarska-Dworczak, B., & Garsztka, P. (2018). Corporate social-environmental performance versus financial performance of banks in Central and Eastern European Countries. Sustainability, 10(3), 772. https://doi.org/10.3390/su10030772
Freeman, R. E. (1984). Strategic management: A strategic approach. Pitman.
Friede, G., Busch, T., & Bassen, A. (2015). ESG and financial performance: aggregated evidence from more than 2000 empirical studies. Journal of Sustainable Finance & Investment, 5(4), 210–233. https://doi.org/10.1080/20430795.2015.1118917
Fu, L., Parkash, M., & Singhal, R. (2017). Tobin’s q ratio and firm performance. International Research Journal of Appllied Finance, 7(4), 1–10.
Galant, A., & Cadez, S. (2017). Corporate social responsibility and financial performance relationship: A review of measurement approaches. Economic Research-Ekonomska Istraživanja, 30(1), 676–693. https://doi.org/10.1080/1331677X.2017.1313122
Gallén, M. L., & Peraita, C. (2017). The effects of national culture on corporate social responsibility disclosure: A cross-country comparison. Applied Economics, 50(27), 2967–2979. https://doi.org/10.1080/00036846.2017.1412082
Garcia-Castro, R., Ariño, M. A., & Canela, M. A. (2010). Does social performance really lead to financial performance? Accounting for endogeneity. Journal of Business Ethics, 92(1), 107–126. https://doi.org/10.1007/s10551-009-0143-8
Garriga, E., & Melé, D. (2004). Corporate social responsibility theories: Mapping the territory. Journal of Business Ethics, 53(1–2), 51–71. https://doi.org/10.1023/B:BUSI.0000039399.90587.34
Gonenc, H., & Scholtens, B. (2019). Responsibility and performance relationship in the banking industry. Sustainability, 11(12), 3329. https://doi.org/10.3390/su11123329
Halkos, G., & Skouloudis, A. (2017). Revisiting the relationship between corporate social responsibility and national culture: A quantitative assessment. Management Decision, 55(3), 595–613. https://doi.org/10.1108/MD-12-2016-0868
Hasan, Z. (2009). Corporate governance: Western and Islamic perspectives. International Review of Business Research Papers, 5(1), 277–293.
Hofstede, G. (1983). The cultural relatively of organizational practices and theories. Journal of International Business Studies, 14, 75–89. https://doi.org/10.1057/palgrave.jibs.8490867
Hofstede, G. (2011). Dimensionalizing cultures: The Hofstede model in context. Online Readings in Psychology and Culture, 2(1), 8. https://doi.org/10.9707/2307-0919.1014
Hsiao, C. (2007). Panel data analysis-advantages and challenges. Test, 16(1), 1–22. https://doi.org/10.1007/s11749-007-0046-x
Hurley, R. (2014). Understanding trust in banks. International Journal of Bank Marketing, 32(5), 348– 366. https://doi.org/10.1108/IJBM-01-2014-0003
Jan, A., Marimuthu, M., & Mat Isa, M. P. B. M. (2019). The nexus of sustainability practices and financial performance: From the perspective of Islamic banking. Journal of Cleaner Production, 228, 703–717. https://doi.org/10.1016/j.jclepro.2019.04.208
Jensen, M. (2002). Value maximisation, stakeholder theory, and the corporate objective function. Business Ethics Quarterly, 12(2), 235–256. https://doi.org/10.2307/3857812
Jo, H., Kim, H., & Park, K. (2014). Corporate environmental responsibility and firm performance in the financial services sector. Journal of Business Ethics, 131(2), 257–284. https://doi.org/10.1007/s10551-014-2276-7
Kim, W. S., & Oh, S. (2019) Corporate social responsibility, business groups and financial performance: A study of listed Indian firms. Economic Research-Ekonomska Istraživanja, 32(1), 1777–1793. https://doi.org/10.1080/1331677X.2019.1637764
Kreiser, P. M., Marino, L. D., Dickson, P., & Weaver, K. M. (2010). Cultural influences on entrepreneurial orientation: The impact of national culture on risk taking and proactiveness in SMEs. Entrepreneurship Theory and Practice, 34(5), 959–984. https://doi.org/10.1111/j.1540-6520.2010.00396.x
Laguir, I., Marais, M., El Baz, J., & Stekelorum, R. (2018). Reversing the business rationale for environmental commitment in banking: Does financial performance lead to higher environmental performance? Management Decision, 56(2), 358–375. https://doi.org/10.1108/MD-12-2016-0890
Lankoski, L. (2000). Determinants of environmental profit: An analysis of the firm-level relationship between environmental performance and economic performance [Doctoral dissertation]. https://aaltodoc.aalto.fi/handle/123456789/2510
Lauesen, L. M. (2013). CSR in the aftermath of the financial crisis. Social Responsibility Journal, 9(4), 641–663. https://doi.org/10.1108/SRJ-11-2012-0140
Levine, R. (2005). Finance and growth: Theory and evidence. In P. Aghion & S. Durlauf (Eds.), Handbook of economic growth (pp. 865–934). Elsevier. https://doi.org/10.1016/S1574-0684(05)01012-9
Lins, K. V., Servaes, H., & Tamayo, A. (2017). Social capital, trust, and firm performance: The value of corporate social responsibility during the Financial Crisis. The Journal of Finance, 72(4), 1785–1824. https://doi.org/10.1111/jofi.12505
Maali, B., Casson, P., & Napier, C. (2006). Social reporting by Islamic banks. Abacus, 42(2), 266–289.
Mallin, C., Farag, H., & Ow-Yong, K. (2014). Corporate social responsibility and financial performance in Islamic banks. Journal of Economic Behavior & Organization, 103(Suppl.), S21–S38. https://doi.org/10.1016/j.jebo.2014.03.001
McWilliams, A., & Siegel, D. (2000). Corporate social responsibility and financial performance: Correlation or misspecification? Strategic Management Journal, 21(5), 603–609. https://doi.org/10.1002/(SICI)1097-0266(200005)21:5<603::AID-SMJ101>3.0.CO;2-3
Michelon, G., Boesso, G., & Kumar, K. (2013). Examining the link between strategic corporate social responsibility and company performance: An analysis of the best corporate citizens. Corporate Social Responsibility and Environmental Management, 20(2), 81–94. https://doi.org/10.1002/csr.1278
Miras-Rodríguez, M., Carrasco-Gallego, A., & Escobar-Pérez, B. (2015). Are socially responsible behaviors paid off equally? A cross-cultural analysis. Corporate Social Responsibility and Environmental Management, 22(4), 237–256. https://doi.org/10.1002/csr.1344
Nelling, E., & Webb, E. (2009). Corporate social responsibility and financial performance: The “virtuous circle” revisited. Review of Quanitative Finance and Accounting, 32(2), 197–209. https://doi.org/10.1007/s11156-008-0090-y
Ortas, E., Álvarez, I., Jaussaud, J., & Garayar, A. (2015). The impact of institutional and social context on corporate environmental, social and governance performance of companies committed to voluntary corporate social responsibility initiatives. Journal of Cleaner Production, 108(A), 673–684. https://doi.org/10.1016/j.jclepro.2015.06.089
Peloza, J. (2009). The challenge of measuring financial impacts from investments in corporate social performance. Journal of Management, 35(6), 1518–1541. https://doi.org/10.1177/0149206309335188
Peng, C. W., & Yang, M. L. (2014). The effect of corporate social performance on financial performance: The moderating effect of ownership concentration. Journal of Business Ethics, 123(1), 171–182. https://doi.org/10.1007/s10551-013-1809-9
Peng, Y.-S., Dashdeleg, A.-U., & Chih, H.-L. (2014). National culture and firm’s CSR engagement: A cross-nation study. Journal of Marketing and Management, 5(1), 38–49.
Porter, M. E., & Kramer, M. R. (2006). Strategy & society: The link between competitive advantage and corporatesocial responsibility. Harvard Business Review, 84, 78–92.
Preston, L. E., & O’Bannon, D. P. (1997). The corporate social-financial performance relationship: A typology and analysis. Business & Society, 36(4), 419–429. https://doi.org/10.1177/000765039703600406
Ramzan, M., Amin, M., & Abbas, M. (2021). How does corporate social responsibility affect financial performance, financial stability, and financial inclusion in the banking sector? Evidence from Pakistan. Research in Internation Business and Finance, 55, 101314. https://doi.org/10.1016/j.ribaf.2020.101314
Ringov, D., & Zollo, M. (2007). The impact of national culture on corporate social performance. Corporate Governance, 7(4), 476–485. https://doi.org/10.1108/14720700710820551
Rodgers, W., Choy, H. L., & Guiral, A. (2013). Do investors value a firm’s commitment to social activities? Journal of Business Ethics, 114(4), 607–623. https://doi.org/10.1007/s10551-013-1707-1
Rowley, T., & Berman, S. (2000). A brand new brand of corporate social performance. Business & Society, 39(4), 397–418. https://doi.org/10.1177/000765030003900404
Saeidi, S. P., Sofian, S., Saeidi, P., Saeidi, S. P., & Saaeidi, S. A. (2015). How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction. Journal of Business Research, 68(2), 341–350. https://doi.org/10.1016/j.jbusres.2014.06.024
Schneider, S. C., & De Meyer, A. (1991). Interpreting and responding to strategic issues: The impact of national culture. Strategic Management Journal, 12(4), 307–320. https://doi.org/10.1002/smj.4250120406
Scholtens, B. (2009). Corporate social responsibility in the international banking industry. Journal of Business Ethics, 86(2), 159–175. https://doi.org/10.1007/s10551-008-9841-x
Shakil, M. H., Mahmood, N., Tasnia, M., & Munim, Z. H. (2019). Do environmental, social and governance performance affect the financial performance of banks? A cross-country study of emerging market banks. Management of Environmental Quality, 30(6), 1331–1344. https://doi.org/10.1108/MEQ-08-2018-0155
Shen, C. H., Wu, M. W., Chen, T. H., & Fang, H. (2016). To engage or not to engage in corporate social responsibility: Empirical evidence from global banking sector. Economic Modelling, 55, 207–225. https://doi.org/10.1016/j.econmod.2016.02.007
Shiller, R. J. (2013). Reflections on finance and the good society. American Economic Review, 103(3), 402–405. https://doi.org/10.1257/aer.103.3.402
Simpson, W. G., & Kohers, T. (2002). The link between corporate social and financial performance: Evidence from the banking industry. Journal of Business Ethics, 35(2), 97–109. https://doi.org/10.1023/A:1013082525900
Siueia, T. T., Wang, J., & Deladem, T. G. (2019). Corporate social responsibility and financial perfroamcne: A comparative study in the Sub-Saharan Africa banking sector. Journal of Cleaner Production, 226, 658–668. https://doi.org/10.1016/j.jclepro.2019.04.027
Soana, M. G. (2011). The relationship between corporate social performance and corporate financial performance in the banking sector. Journal of Business Ethics, 104(1), 133–148. https://doi.org/10.1007/s10551-011-0894-x
Thanetsunthorn, N. (2015). The impact of national culture on corporate social responsibility: Evidence from cross-regional comparison. Asian Journal of Business Ethics, 4, 35–56. https://doi.org/10.1007/s13520-015-0042-2
Tsui, J., & Shieh, T. (2003). Corporate governance in emerging markets: An Asian perspective. In F. D. S. Choi (Ed.), International finance and accounting handbook. John Wiley & Sons Inc.
Waddock, S. A., & Graves, S.B . (1997). The corporate social performance-financial performance link. Strategic Management Journal, 18(4), 303–319. https://doi.org/10.1002/(SICI)1097-0266(199704)18:4<303::AID-SMJ869>3.0.CO;2-G
Wang, Y., & Berens, G. (2015). The impact of four types of corporate social performance on reputation and financial performance. Journal of Business Ethics, 131(2), 337–359. https://doi.org/10.1007/s10551-014-2280-y
Zyznarska-Dworczak, B. (2018). The development perspectives of sustainable management accounting in Central and Eastern European countries. Sustainability, 10(5), 1445. https://doi.org/10.3390/su10051445