Corporate Social Responsibility (CSR) and Financial Performance: An Empirical Evidence on Listed Banks in Bangladesh

Abstract

Companies are under tremendous pressure from various stakeholders to increase their transparency by publishing in-depth reports detailing their corporate social responsibility (CSR)-related initiatives, plans, and strategies in recent times. The study's primary goal is determining which CSR disclosure variables are essential for financial performance. The overall CSR disclosure index was created and calculated for DSE-listed banks in Bangladesh from 2017 to 2021. This research uses regression models to investigate the relationship between corporate social responsibility and financial performance (Return on Asset, Return on Equity, and Tobin's Q). The study's findings imply that CSR boosts company value, except bank size, and all of the study's variables have a positive relationship with corporate financial success. The study fills vital research gaps in the academic literature on CSR disclosures, and the conclusions have relevant and useful implications for achieving economic growth and competitive advantage.