The Study of Corporate Social Responsibility and Ownership Structure on Bank’s Financial Performance in Taiwan

Shu-Yu Lin, Che-Chiang Hsu and Juei-Chi Chang

Advances in Management and Applied Economics, 2023, vol. 13, issue 6, 16

Abstract: This study investigates the relationship between corporate social responsibility (CSR), ownership structure, and financial performance in a sample of 14 domestic financial holding companies in Taiwan. The empirical data gathered clearly indicate that banks recognized with CSR awards demonstrate superior financial performance across all models compared to those without awards. Notably, the bank’s practice of CSR, which signifies drawing from and contributing back to society, correlates with superior financial returns. In terms of large external shareholders, the institutional block-holders has a more pronounced impact as a monitoring mechanism compared to individual block-holders. Moreover, the study also supports the convergence-of-interest hypothesis, indicating that the alignment of interests between the managerial insiders and the shareholders through equity ownership can bolster a company’s financial performance.  JEL classification numbers: G32.

Keywords: Corporate Social Responsibility (CSR); Ownership Structure; Financial Performance. (search for similar items in EconPapers)
Date: 2023
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