Corporate Social Responsibility Impact on Financial Performance of Islamic and Conventional Banks: Evidence from Asian Countries

Abstract

Purpose – The basic aim of study is to examine the effect of corporate social responsibility on financial performance in Islamic and conventional banks of various Asian countries.

Design/methodology/approach- The secondary data is collected from respective banks annual reports. This study is quantitative in nature. The data analysis purpose correlation and regression techniques are used.

Findings- According to regression and Robust analysis the research findings show that overall positive and significant relationship between corporate social Responsibility and financial performance. And, in this study we examine that banks not only pay for the CSR also their customers take a role in the bank’s practices. So, the findings of this study support the relationship between CSR and financial performance as both hearted each other.

Research restraints- The bigger limitations of this study is that the size of sample may not adequately represent all Asian countries except Pakistan and Bangladesh and also less year’s data of banks from period 2010-2015. Further research can be conduct by taking other countries, more years’ data of other banks in the future.

Originality/value- The study indicates that financial ability in respect of corporate social responsibility outlay have certain and meaningful influence in bank’s financial performance.

Keywords: Islamic and Conventional Banks, Return on asset, Return on equity, Banks financial performance, Corporate social responsibility.

Research type: Research paper