Corporate Social Responsibility and Financial Performance: Evidence from Pakistani Listed Banks

Krisztina Szegedi, Yahya Khan and Csaba Lentner
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Krisztina Szegedi: Department of International Commerce and Logistics, Budapest Business School, H-1055 Budapest, Hungary
Yahya Khan: Department of Business Economics, Faculty of Economics, University of Miskolc, 3515 Miskolc-Egyetemvaros, Hungary
Csaba Lentner: Public Finance Research Institute, Faculty of Science of Public Governance and Administration, National University of Public Service, 1083 Budapest, Hungary

Sustainability, 2020, vol. 12, issue 10, 1-19

Abstract: This study intends to examine corporate social responsibility (CSR) in Pakistan’s banking sector, CSR disclosure practices and their impact on financial performance. For the study, relevant data was collected from the banks’ annual reports, financial websites, the State Bank of Pakistan (SBP) and the Pakistan Stock Exchange (PSE) from 2008 to 2018. The methods utilized in this research study were content analysis and panel data techniques. The results indicate an increase in overall CSR disclosure by all banks in the sample and the findings suggest the involvement of commercial banks in CSR activities, and its proper disclosure has helped to improve their accounting-based financial performance proxied by the return on equity (ROE) and return on assets (ROA). The research findings contribute to a better understanding of the CSR practices in the financial sector of an emerging country, which makes a dynamic effort to develop its financial culture and can encourage rapprochement with Pakistan’s financial sector.

Keywords: corporate social responsibility; CSR disclosure; financial performance; stakeholder theory; content analysis (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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