Corporate Social Responsibility Disclosure and Firm’s Productivity: Evidence from the Banking Industry in Bangladesh

Sustainability

Syed Zabid Hossain¹  Md. Harun Ur Rashid²  Yubin Zheng³  Wei Wei³  Abu Bakkar Siddik⁴ 

[1] Department of Accounting and Information Systems, University of Rajshahi, Rajshahi 6205, Bangladesh;Department of Economics & Banking, International Islamic University Chittagong, Chattogram 4318, Bangladesh;School of Economics and Finance, Xi’an Jiaotong University, Xi’an 710061, China;School of Economics and Management, Shaanxi University of Science and Technology, Xi’an 710021, China;

关键词: CSR disclosure;    total factor productivity;    bank performance;    banking industry;    Bangladesh;   

DOI  :  10.3390/su14106237

来源: DOAJ

【 摘 要 】

Since the empirical evidence on the relationship between corporate social responsibility disclosure (CSRD) and firm productivity is scarce in the context of the banking industry, the study examines whether CSRD leads banks in Bangladesh to higher productivity. Using annual report data of all 30 banks listed on the Dhaka Stock Exchange in Bangladesh from 2011 to 2018, the study applied a data envelopment analysis (DEA) to determine the productivity of the sample banks, and then ordinary least squares (OLS) analysis to examine the impact of CSR on the banks’ productivity. Furthermore, the study utilized two-stage least squares (2SLS) and a generalized method of moments (GMM) to check the robustness of the findings amid the detection of endogeneity issues. The study also used several alternative variables to check and verify the reliability of the study. The findings indicate that the greater a bank’s contribution to CSR, the higher its productivity. However, banks with more debt to assets are less productive. Additionally, the study observed that the impact of CSRD on bank productivity is higher in GRI banks compared to non-GRI banks, non-politically connected banks as opposed to politically connected banks, and conventional banks compared to Islamic banks. The study provides valuable insight into how CSR activities can promote bank productivity, thus motivating the banks to execute a well-thought-out action plan to ensure more CSR contribution. This study is the first ever bank-level evidence that provides insight into how the patterns of CSR activity of publicly traded banks impact their productivity.

【 授权许可】

Unknown