IDEAS home Printed from https://ideas.repec.org/a/rbs/ijfbss/v6y2017i1p39-50.html
   My bibliography  Save this article

Identifying the Factors Influence Turkish Deposit Banks to Join Corporate Social Responsibility Activities by Using Panel Probit Method

Author

Listed:
  • Serhat Yuksel

    (Asst. Prof.School of Business and Management Sciences, Istanbul Medipol University)

  • Mustafa Ozsari

    (Research Assistant, Department of Economics, Konya Food and Agriculture University, Konya, Turkey)

Abstract

This study aims to determine the influencing factors of the banks to join corporate social responsibility activities. Within this scope, annual data of 23 deposit banks in Turkey for the periods between 2005 and 2015 was taken into the consideration. In addition to this situation, panel probit model was used in the analysis so as to achieve this objective. According to the results of the analysis, it was determined that there is a negative relationship between CSR activities and nonperforming loans ratio. This situation shows that banks do not prefer to make social responsibility activities in case of higher financial losses. In addition to this situation, it was also identified that there is a positive relationship between return on asset and corporate social responsibility activities of the banks. In other words, it can be understood that Turkish deposit banks, which have higher profitability, joint more CSR activities in comparison with others.

Suggested Citation

  • Serhat Yuksel & Mustafa Ozsari, 2017. "Identifying the Factors Influence Turkish Deposit Banks to Join Corporate Social Responsibility Activities by Using Panel Probit Method," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 6(1), pages 39-50, January.
    • Handle: RePEc:rbs:ijfbss:v:6:y:2017:i:1:p:39-50
    as

    Download full text from publisher

    File URL: https://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/321/283
    Download Restriction: no
    File URL: https://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/321
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Wu, Meng-Wen & Shen, Chung-Hua, 2013. "Corporate social responsibility in the banking industry: Motives and financial performance," Journal of Banking & Finance, Elsevier, vol. 37(9), pages 3529-3547.
    2. Serhat Yuksel & Hasan Dincer Author-Workplace-Associate Professor of Finance, School of Business and Management Sciences & Umit Hacioglu, 2015. "CAMELS-based Determinants for the Credit Rating of Turkish Deposit Banks," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 4(4), pages 01-17, October.
    3. Da-Chang Pai & Chi-Shiun Lai & Chih-Jen Chiu & Chin-Fang Yang, 2015. "Corporate Social Responsibility and Brand Advocacy in Business-to-Business Market: The Mediated Moderating Effect of Attribution," Journal of Business Ethics, Springer, vol. 126(4), pages 685-696, February.
    4. Saeidi, Sayedeh Parastoo & Sofian, Saudah & Saeidi, Parvaneh & Saeidi, Sayyedeh Parisa & Saaeidi, Seyyed Alireza, 2015. "How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction," Journal of Business Research, Elsevier, vol. 68(2), pages 341-350.
    5. Bert Scholtens, 2009. "Corporate Social Responsibility in the International Banking Industry," Journal of Business Ethics, Springer, vol. 86(2), pages 159-175, May.
    6. Abagail McWilliams & Donald Siegel, 2000. "Corporate social responsibility and financial performance: correlation or misspecification?," Strategic Management Journal, Wiley Blackwell, vol. 21(5), pages 603-609, May.
    7. Donald S. Siegel & Donald F. Vitaliano, 2007. "An Empirical Analysis of the Strategic Use of Corporate Social Responsibility," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 16(3), pages 773-792, September.
    8. Christine Ye & J. Cronin & John Peloza, 2015. "The Role of Corporate Social Responsibility in Consumer Evaluation of Nutrition Information Disclosure by Retail Restaurants," Journal of Business Ethics, Springer, vol. 130(2), pages 313-326, August.
    9. Cornett, Marcia Millon & Erhemjamts, Otgontsetseg & Tehranian, Hassan, 2016. "Greed or good deeds: An examination of the relation between corporate social responsibility and the financial performance of U.S. commercial banks around the financial crisis," Journal of Banking & Finance, Elsevier, vol. 70(C), pages 137-159.
    10. Miyakoshi, Tatsuyoshi, 2000. "The causes of the Asian currency crisis: empirical observations," Japan and the World Economy, Elsevier, vol. 12(3), pages 243-253, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mario La Torre & Sabrina Leo & Ida Claudia Panetta, 2021. "Banks and environmental, social and governance drivers: Follow the market or the authorities?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1620-1634, November.
    2. Francesco Gangi & Antonio Meles & Eugenio D'Angelo & Lucia Michela Daniele, 2019. "Sustainable development and corporate governance in the financial system: Are environmentally friendly banks less risky?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(3), pages 529-547, May.
    3. Danisman, Gamze Ozturk & Tarazi, Amine, 2024. "ESG activity and bank lending during financial crises," Journal of Financial Stability, Elsevier, vol. 70(C).
    4. Issam Laguir & Rebecca Stekelorum & Lamia Laguir & Raffaele Staglianò, 2021. "Managing corporate social responsibility in the bank sector: A fuzzy and disaggregated approach," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(4), pages 1324-1334, July.
    5. Shen, Chung-Hua & Wu, Meng-Wen & Chen, Ting-Hsuan & Fang, Hao, 2016. "To engage or not to engage in corporate social responsibility: Empirical evidence from global banking sector," Economic Modelling, Elsevier, vol. 55(C), pages 207-225.
    6. Antonio Martos‐Pedrero & David Jiménez‐Castillo & Vera Ferrón‐Vílchez & Francisco Joaquín Cortés‐García, 2023. "Corporate social responsibility and export performance under stakeholder view: The mediation of innovation and the moderation of the legal form," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(1), pages 248-266, January.
    7. Amir Gholami & John Sands & Habib Ur Rahman, 2022. "Environmental, Social and Governance Disclosure and Value Generation: Is the Financial Industry Different?," Sustainability, MDPI, vol. 14(5), pages 1-17, February.
    8. Byung‐Jik Kim & Youngkyun Chang & Tae‐Hyun Kim, 2023. "Translating corporate social responsibility into financial performance: Exploring roles of work engagement and strategic coherence," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(5), pages 2555-2573, September.
    9. Broadstock, David C. & Matousek, Roman & Meyer, Martin & Tzeremes, Nickolaos G., 2020. "Does corporate social responsibility impact firms' innovation capacity? The indirect link between environmental & social governance implementation and innovation performance," Journal of Business Research, Elsevier, vol. 119(C), pages 99-110.
    10. Hoje Jo & Hakkon Kim & Kwangwoo Park, 2015. "Corporate Environmental Responsibility and Firm Performance in the Financial Services Sector," Journal of Business Ethics, Springer, vol. 131(2), pages 257-284, October.
    11. Kuldeep Singh & Madhvendra Misra & Jitendra Yadav, 2021. "Corporate social responsibility and financial inclusion: Evaluating the moderating effect of income," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(5), pages 1263-1274, July.
    12. Moufty, Souad & Clark, Ephraim & Al-Najjar, Basil, 2021. "The different dimensions of sustainability and bank performance: Evidence from the EU and the USA," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 43(C).
    13. Massimiliano Cerciello & Francesco Busato & Simone Taddeo, 2023. "The effect of sustainable business practices on profitability. Accounting for strategic disclosure," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 802-819, March.
    14. Bardos, Katsiaryna Salavei & Ertugrul, Mine & Gao, Lucia Silva, 2020. "Corporate social responsibility, product market perception, and firm value," Journal of Corporate Finance, Elsevier, vol. 62(C).
    15. Tahira Naseem & Faisal Shahzad & Ghazanfar Ali Asim & Ijaz Ur Rehman & Faisal Nawaz, 2020. "Corporate social responsibility engagement and firm performance in Asia Pacific: The role of enterprise risk management," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 501-513, March.
    16. Herenia Gutiérrez-Ponce & Sigit Arie Wibowo, 2023. "Do Sustainability Activities Affect the Financial Performance of Banks? The Case of Indonesian Banks," Sustainability, MDPI, vol. 15(8), pages 1-17, April.
    17. Galletta, Simona & Mazzù, Sebastiano & Naciti, Valeria, 2022. "A bibliometric analysis of ESG performance in the banking industry: From the current status to future directions," Research in International Business and Finance, Elsevier, vol. 62(C).
    18. Hummel, Katrin & Laun, Ute & Krauss, Annette, 2021. "Management of environmental and social risks and topics in the banking sector - An empirical investigation," The British Accounting Review, Elsevier, vol. 53(1).
    19. Labrini Sideri, 2021. "Leveraging CSR for Sustainability: Assessing Performance Implications of Sustainability Reporting in a National Business System," Sustainability, MDPI, vol. 13(11), pages 1-16, May.
    20. Encarna Guillamon-Saorin & Magdalena Kapelko & Spiro E. Stefanou, 2018. "Corporate Social Responsibility and Operational Inefficiency: A Dynamic Approach," Sustainability, MDPI, vol. 10(7), pages 1-26, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rbs:ijfbss:v:6:y:2017:i:1:p:39-50. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Hasan Dincer (email available below). General contact details of provider: https://edirc.repec.org/data/ssbffea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.