The Effect of Corporate Social Responsibility on Performance of Taiwan’s Banking Industry
Date Issued
2016
Date
2016
Author(s)
Chang, Kai-Chun
Abstract
This study examines the effect of corporate social responsibility on bank financial performance. First of all, original sample of this study is selected from the banks listed in Central Bank of Taiwan from 2007 to 2014. This paper also uses the 1st to 8th Excellence in Corporate Social Responsibility TOP 50 released annually by renowned magazines in Taiwan, namely, Common Wealth Magazine, as a benchmark for the performance of corporate social responsibility. Moreover, we use return on assets (ROA), return on equity (ROE), operation income per employee (OIPE), non-performing loan (NPL), stock return and bank of international settlement (BIS) as the variables of financial performance. In order to elevate the reliability of research result, total asset and debt ratio are used as the control variables of these models. Finally, we adopt multiple linear regression method to analyze research results. Our findings show that：(1) There are significant positive correlation between bank taking CSR and their ROA, ROE and OIPE, which support the social impact hypothesis ,the good management theory and the managerial guile theory. (2) There is significant negative correlation between bank taking CSR and their non-performing loan. (3) There is no significant relationship between CSR and stock return, supporting the supply and demand theory of the firm. In conclusion, the analysis represents that the corporate social responsibility positively influences bank financial performance.
Subjects
Corporate Social Responsibility
Financial Performance
Banking Industry
SDGs
Type
thesis
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