Effect of corporate social responsibility on financial performance of banks in Sri Lanka

Corporate social responsibility (CSR) is not a new concept in the banking sector, but nowadays, it becomes highly typical since the crisis has significantly highlighted the need for integration of moral principles in the banking business. CSR describes as “Doing all those activities which are not forced by law of those countries in which they are running their business and which are not for the primary benefits of the business but for the benefits of the society.” This study examined the effect of corporate social responsibility for the financial performance of selected Licensed Commercial Banks in Sri Lanka. The objective of this study is to examine the impact of corporate social responsibility on financial performance for the period of 2010 to 2014 in selected Commercial Banks of Sri Lanka. They are Amana Bank PLC, People‟s Bank, Commercial Bank of Ceylon PLC, Hatton National Bank, Nations trust Bank, Bank of Ceylon, DFCC Bank PLC, National Development Bank PLC, Pan Asia Banking Corporation and Sampath Bank PLC. This study utilizes the secondary data. The data were collected from annual reports of the selected banks and Directors‟ reports. Other sources such as newsletters, news articles, journals and websites were also used. The data were analyzed using correlation, regression analysis and hypothesis testing by SPSS 20.0 software. In addition, the regression model shows that there is a positive impact between CSR and the dimensions of financial performance (ROA, ROE, EPS and Net Profit). The finding of this study shows that there is a positive and significant relationship between corporate social responsibility and financial performance, which demonstrates that there is positive impact of corporate social responsibility for the financial performance of selected Licensed Commercial Banks of Sri Lanka. This study concludes that CSR for the success of Commercial Bank since it helps to improve financial performance. The study recommends that banks may portray themselves as socially responsible firms it will lead to improve the overall financial performance of the Banks. Government should play its role to motivate the banks to spend for the welfare of the societies, nations and environment where banks operate their businesses and earn profits

Pengaruh Corporate Social Responsibility Berbasiskan Karakteristik Social Bank Terhadap Kinerja Perusahaan Perbankan Di Bursa Efek Indonesia

The purpose of this study is to test empirically the effect of Corporate Social Responsibility (CSR) on the financial performance of banking companies listed in the Indonesia Stock Exchange (IDX). In contrast to previous studies, this study uses the social bank characteristics for the measurement of CSR. Social bank characteristics are a proxy of sustainability development. The company's performance is proxied by Tobin's Q. The sample was banking companies listed on the IDX in 2008 to 2012. This study used a multiple regression model and the R software to test the hypothesis. At the 5% significance level, the results show that CSR significantly affects the financial performance of banking companies listed in the IDX. The regression coefficient of CSR on corporate performance is -0.075769, thus CSR as measured by the social bank characteristics as a proxy of sustainability development is significantly negative on firm financial performance as measured by Tobin's Q. In other words, CSR-based sustainability development does not affect the increase of financial performance of banking companies that are listed in the IDX

What Drives Bank Profitability? A Panel Data Analysis of Commercial Banks in Bangladesh

Bank profitability plays a significant role in the growth and development of an emerging economy. The purpose of the study was to examine the impact of bank characteristics, industry concentration and macroeconomics variables on commercial bank profitability in Bangladesh from 2007-2017. Bank profitability is proxied by return on assets (ROA), return on equity (ROE) and net interest margin (NIM). The study is based on secondary data and Hausman test has been performed using STATA software in favor of fixed effect modeling. Panel regressions shows that cost efficiency has significant negative impact on ROA and NIM. The positive impact of loan to deposit ratio with ROA suggests that efficient fund management including investment and assessed expenditure should be emphasized. Bank size has significant negative impact on all the measures of profitability, which indicates that monopolistic competition will reduce banking profit. Credit risk has significant positive impacts on ROE. Industry concentration measured by CR3 is positively related with ROE and has significant negative relation with bank profitability (ROA). Among macroeconomic variables inflation has significant positive and bank spread has significant negative impact on ROE. The coefficients of all the macroeconomic variables have been found to be significantly related to bank profitability while measured by NIM. Our study recommends further research with other explanatory variables such as, corporate governance, corporate social responsibility (CSR) and deposit insurance to accelerate the model and construct the econometric model by using structural equation modeling, mediation effect modeling etc

Analisis Kesehatan PT. Bank Syariah Indonesia Menggunakan Metode Risk Profile, Good Corporate Governance, Earnings, Capital: Komparasi Sebelum Dan Setelah Merger

This study aims to analyze the health of PT. Bank Syariah Indonesia uses the method of risk profile, good corporate governance, earnings, capital compared before and after the merger. This study uses quantitative research methods with secondary data in the form of quarterly financial reports obtained from the website of each bank, www.idx.co.id. The sample obtained using a saturated sampling technique which uses all of the population as samples, namely Bank BNI Syariah, Bank BRI Syariah, Bank Syariah Mandiri and the bank resulting from the merger of Bank Syariah Indonesia. with SPSS 25 software program. The results showed that the risk profile, good corporate governance, earnings, capital have significant differences before and after the merge

THE EFFECT OF INTELLECTUAL CAPITAL PERFORMANCE, MUDHARABAH FINANCING, AND GOOD CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE (Empirical Study On Islamic Commercial Banks In Indonesia 2019-2021 Period)

This research aims to test the influence of intellectual capital performance , mudharabah financing, and good corporate governance (independent commissioner, council directors, and Hall sharia supervisor) against financial performance (ROA) on company Bank General Sharia at Indonesia for period 2019-2021. Amount sample in research this is 10 company by sum observation as much as 30 data. Recruitment sample done by purposive sampling. This research uses secondary data obtained from company financial reports from Exchange Indonesia effect and corporate web each as well data from the Financial Services Authority (OJK). Technique analysis data which used in research this is analysis regression linear double by software SPSS 25. Results from this research prove that intellectual capital performance have a significant effect on performance finance (ROA), while mudharabah financing, independent commissioners, board of directors, and board of supervisors sharia no influential against performance finance (ROA