Title: Corporate social responsibility and financial performance of Indian banks: panel data analysis

Authors: Akanksha Shukla

Addresses: National Institute of Technology Jamshedpur, Jamshedpur, India

Abstract: Studies have been carried out to determine the association between corporate social responsibility (CSR) and financial performance of the firm. Also, the debate whether CSR is relevant for financial firms and banks or not exists. So, the current research attempts to measure the influence of CSR on profitability of the banks. Panel data regression analysis has been conducted on data of 27 banks of India for the crucial period from 2010-2011 to 2018-2019. The findings reveal that the expenditure made on CSR activities significantly influences the profitability of banks measured using profit after tax. However, insignificant effect of CSRE on ROA and ROE of the firm was shown. It provides a validated model which can be used to determine influence of expenditure on social responsibility activities of firms on their financial well-being.

Keywords: banks; corporate social responsibility expenditure; fixed effect; Hausman test; panel data; random effect; India.

DOI: 10.1504/IJBEX.2024.140342

International Journal of Business Excellence, 2024 Vol.33 No.3, pp.435 - 448

Received: 25 Sep 2020
Accepted: 24 Mar 2021
Published online: 05 Aug 2024 *

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