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

Author

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  • Shu-Yu Lin
  • Che-Chiang Hsu
  • Juei-Chi Chang

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.

Suggested Citation

  • Shu-Yu Lin & Che-Chiang Hsu & Juei-Chi Chang, 2023. "The Study of Corporate Social Responsibility and Ownership Structure on Bank’s Financial Performance in Taiwan," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 13(6), pages 1-16.
    • Handle: RePEc:spt:admaec:v:13:y:2023:i:6:f:13_6_16
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    References listed on IDEAS

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    More about this item

    Keywords

    Corporate Social Responsibility (CSR); Ownership Structure; Financial Performance.;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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