A non-linear and disaggregated approach to study the impact of CSR on accounting profitability: Evidence from banking industry

Łukasz Matuszak , Ewa Różańska


Idea:The corporate social responsibility (CSR) is now extensively promoted in the European Union and highly desired by stakeholders, however from manager’s view the question whether or not corporations should conduct CSR activities is controversial because of the accompanying high cost and uncertain benefits. The vast empirical literature is rather inconclusive with respect to the question of whether CSR business engagement creates or destroys financial performance (FP). Thus, the purpose of this study is to provide an updated assessment of the relationship between CSR and FP. Data:A sample consists of 18 banks. Hand collected data from annual reports for the period of 2008-2015.Tools:Based on the content analysis we develop four individual CSR disclosure indices, corresponding to the following dimensions the environmental, human resources, product and customers and community involvement, instead of the CSR composite score and we examine their impact on accounting-based measures. We apply boththe linear and non-linear approaches. Software: GRETL. What’s new: Our results confirm the existence of U-shaped relation between human resources and FP and inversely U-shaped relation between community involvement as well as between product and customers and FP. Contribution:This study contributes to the CSR literature providing new insights into this relationship between CSR dimensions and FP suggesting that the inconsistent findings in the literature may be due to the use of aggregated CSR measures, linear approach as well as the omission of the industry or country context. This study also offers policy suggestions for both bank managers and government regulators
Author Łukasz Matuszak (WZ / KR)
Łukasz Matuszak,,
- Department of Accounting
, Ewa Różańska (WZ / KR)
Ewa Różańska,,
- Department of Accounting
Journal seriesProceedings of the International Conference "Accounting and Management Information Systems ", ISSN 2247-6245, (0 pkt)
Issue year2018
Publication size in sheets1
Conference13th International Conference Accounting and Management Information Systems (AMIS 2018), 13-06-2018 - 14-06-2018, Bucharest, Rumunia
Keywords in Polishspołeczna odpowiedzialność biznesu; ujawnienia CSR, wyniki finansowe, zależność nieliniowa, sektor bankowy
Keywords in EnglishCorporate social responsibility, CSR disclosure, financial performance, non-linear relation, banking industry
URL http://amis.ase.ro/2018/docs/AMIS2018Proceedings.pdf
Languageen angielski
Score (nominal)5
Score sourcejournalList
ScoreMinisterial score = 5.0, 09-07-2020, ArticleFromJournal
Citation count*
Share Share

Get link to the record

* presented citation count is obtained through Internet information analysis and it is close to the number calculated by the Publish or Perish system.
Are you sure?