Corporate Social Responsibility on Financial Performance: A Study of the Bangladeshi DSE Listed Private Commercial Banks

Authors

DOI:

https://doi.org/10.52962/ipjaf.2020.4.4.110

Keywords:

CSR, Financial Performance, Dhaka Stock Exchange, Private Commercial Banks, Bangladesh

Abstract

The fundamental purpose of the study is to examine the impact of corporate social responsibility (CSR) on the financial performance (FP) of Private Commercial Banks (PCBs) in Bangladesh. The study uses a simple random sampling technique. Ten (10) PCBs are selected as samples for the study from the Dhaka Stock Exchange (DSE) listed companies. Statistical analysis tools such as regression, analysis of variance (ANOVA), and correlation are applied to collected data to examine CSR's impact on selected banks' financial performance. In the study, net profit after tax (NPAT), earnings per share (EPS), net asset value per share (NAVPS), return on assets (ROA), return on equity (ROE), and market value per share (MVPS) are considered as dependent variables and the independent variable, corporate social responsibility (CSR). The findings reveal that the EPS, NAVPS and MVPS of the selected banks are significantly influenced by CSR 56.4, 62.0, and 59.8 percent, respectively. In contrast, CSR has an insignificant relationship with NPAT, ROA, and ROE. The study also indicates a high degree positive and statistically significant correlation between CSR and financial performance (EPS, NAVPS, and MVPS). CSR influences financial performance essentially, so considering social benefits, the banks should perform CSR activities emphasizing educational, environmental, and health issues.

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Published

2020-10-01

How to Cite

Saki, F. (2020). Corporate Social Responsibility on Financial Performance: A Study of the Bangladeshi DSE Listed Private Commercial Banks. Indian-Pacific Journal of Accounting and Finance, 4(4), 3–12. https://doi.org/10.52962/ipjaf.2020.4.4.110

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