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How does corporate social responsibility affect financial performance, financial stability, and financial inclusion in the banking sector? Evidence from Pakistan

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  • Ramzan, Muhammad
  • Amin, Muhammad
  • Abbas, Muhammad

Abstract

This paper examines the impact of corporate social responsibility (CSR) on the financial performance, financial inclusion, and financial stability of the banking sector, focusing on annual data for 20 Pakistani commercial banks for the period 2008–2017. The results suggest that CSR, as well as age and size, has a positive impact on all three factors. However, high levels of leverage reduce financial inclusion and financial stability, while financial inclusion is also negatively associated with the tangibility of assets.

Suggested Citation

  • Ramzan, Muhammad & Amin, Muhammad & Abbas, Muhammad, 2021. "How does corporate social responsibility affect financial performance, financial stability, and financial inclusion in the banking sector? Evidence from Pakistan," Research in International Business and Finance, Elsevier, vol. 55(C).
    • Handle: RePEc:eee:riibaf:v:55:y:2021:i:c:s0275531919301199
    DOI: 10.1016/j.ribaf.2020.101314
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    Cited by:

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    6. Úbeda, Fernando & Mendez, Alvaro & Forcadell, Francisco Javier, 2023. "The sustainable practices of multinational banks as drivers of financial inclusion in developing countries," Finance Research Letters, Elsevier, vol. 51(C).
    7. Agustina, Lidya, 2021. "Does financial performance moderate the effect of CEO characteristics and stakeholder influence on corporate social responsibility in Indonesia?," Technium Business and Management, Technium Science, vol. 2(1), pages 13-29.
    8. Naveed Ahmad & Rana Tahir Naveed & Miklas Scholz & Muhammad Irfan & Muhammad Usman & Ilyas Ahmad, 2021. "CSR Communication through Social Media: A Litmus Test for Banking Consumers’ Loyalty," Sustainability, MDPI, vol. 13(4), pages 1-15, February.
    9. Gao Wei & Wang Lin & Wu Yanxiong & Yan Jingdong & Sadik Yusuf Musse, 2021. "The Relationship of Sustainability Communication on Social Media with Banking Consumers’ Loyalty through e-WOM," Sustainability, MDPI, vol. 13(7), pages 1-13, March.
    10. repec:thr:techub:v:2:y:2021:i:1:p:13-29 is not listed on IDEAS
    11. Úbeda, Fernando & Mendez, Alvaro & Forcadell, Francisco Javier, 2022. "The sustainable practices of multinational banks as drivers of financial inclusion in developing countries," LSE Research Online Documents on Economics 115063, London School of Economics and Political Science, LSE Library.
    12. Bauweraerts, Jonathan & Arzubiaga, Unai & Diaz-Moriana, Vanessa, 2022. "Going greener, performing better? The case of private family firms," Research in International Business and Finance, Elsevier, vol. 63(C).
    13. He, Jingbin & Ma, Xinru, 2023. "Is corporate social responsibility engagement influenced by nearby firms? Evidence from China," International Review of Financial Analysis, Elsevier, vol. 86(C).
    14. Petridis, Konstantinos & Tampakoudis, Ioannis & Drogalas, George & Kiosses, Nikolaos, 2022. "A Support Vector Machine model for classification of efficiency: An application to M&A," Research in International Business and Finance, Elsevier, vol. 61(C).
    15. 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).
    16. Sadeq Damrah & Mohammad I. Elian & Mohamad Atyeh & Fekri Ali Shawtari & Ahmed Bani-Mustafa, 2023. "A Linear Mixed Model Approach for Determining the Effect of Financial Inclusion on Bank Stability: Comparative Empirical Evidence for Islamic and Conventional Banks in Kuwait," Mathematics, MDPI, vol. 11(7), pages 1-17, April.
    17. Ngoc Phu Tran & Co Thi Huyen Dinh & Hien Thi Thu Hoang & Duc Hong Vo, 2022. "Intellectual Capital and Firm Performance in Vietnam: The Moderating Role of Corporate Social Responsibility," Sustainability, MDPI, vol. 14(19), pages 1-13, October.

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