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

Author

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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)

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.

Suggested Citation

  • Krisztina Szegedi & Yahya Khan & Csaba Lentner, 2020. "Corporate Social Responsibility and Financial Performance: Evidence from Pakistani Listed Banks," Sustainability, MDPI, vol. 12(10), pages 1-19, May.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:10:p:4080-:d:358941
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    3. Zaheer Alam & Yasir Bin Tariq, 2023. "Corporate Sustainability Performance Evaluation and Firm Financial Performance: Evidence from Pakistan," SAGE Open, , vol. 13(3), pages 21582440231, July.
    4. Saeed Siyal & Riaz Ahmad & Samina Riaz & Chunlin Xin & Tang Fangcheng, 2022. "The Impact of Corporate Culture on Corporate Social Responsibility: Role of Reputation and Corporate Sustainability," Sustainability, MDPI, vol. 14(16), pages 1-21, August.
    5. Linghui Kong & Muhammad Safdar Sial & Naveed Ahmad & Mariana Sehleanu & Zhihui Li & Malik Zia-Ud-Din & Daniel Badulescu, 2021. "CSR as a Potential Motivator to Shape Employees’ View towards Nature for a Sustainable Workplace Environment," Sustainability, MDPI, vol. 13(3), pages 1-13, February.
    6. Hamzeh Al Amosh & Saleh F. A. Khatib & Husam Ananzeh, 2024. "Terrorist attacks and environmental social and governance performance: Evidence from cross‐country panel data," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 210-223, January.
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    8. Qiang Wu & Jacob Cherian & Sarminah Samad & Ubaldo Comite & Huajie Hu & Stefan B. Gunnlaugsson & Judit Oláh & Muhammad Safdar Sial, 2021. "The Role of CSR and Ethical Leadership to Shape Employees’ Pro-Environmental Behavior in the Era of Industry 4.0. A Case of the Banking Sector," Sustainability, MDPI, vol. 13(17), pages 1-20, August.
    9. George, Ann K. & Kayal, Parthajit & Maiti, Moinak, 2023. "Nexus of Corporate Social Responsibility Expenditure (CSR) and financial performance: Indian banks," The Quarterly Review of Economics and Finance, Elsevier, vol. 90(C), pages 190-200.
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