Skip to content
Research Article Open access CC BY 4.0

The Impact of Corporate Social Responsibility Practice on Financial Performance of Banking Industry: Case Study: East African Commercial Banks

Hussein Abdi Mohamud

Journal of Economics, Management and Trade · pp. 1–7 · Published 28 Nov 2018

10.9734/JEMT/2018/36764

Abstract

The purpose of the study is to investigate the impact of corporate social responsibility on financial performance in the banking sector in East African countries. The required data are collected from the Annual report and web sites issued by the banks for the year 2010 to 2016 and analyzed using Ordinary least squares (OLS) model by using Eviews9. The sample of the study consists of 35 banks in six countries. Corporate social responsibility score was obtained using content analysis of reports of the banks on various components of corporate social responsibility as reported in their audited financial reports also the variables of Financial performance was obtained from bank’s financial statements. A multiple regression model was established to determine the relationship between the two variables. Control variables of GDP and financial leverage were also introduced in the regression model. The result showed that there is a positive strong relationship between CSR and ROA, while there is a negative relationship between CSR and ROE, therefore the study recommends the banks critically evaluate its existing CSR policy and to increase the wealth of shareholders.

Corporate social responsibility (CSR) ROA ROE GDP financial leverage

Cited by 8

RETRACTED ARTICLE: Nexus between corporate social responsibility and firm’s perceived performance: evidence from SME sector of developing economies

Hou Yumei, Wasim Iqbal, Mohammad Nurunnabi · Environmental Science and Pollution Research · 2020

Exploring the drivers of modern slavery reporting quality in Indonesia

Afifah Muawanah, Desi Adhariani · Business Strategy & Development · 2024

Assessing the Influencing Factors of Electronic Word-of-Mouth on CSR Issues. A Case of Hospotality Service Industry of China

Zhuo Liu, Suihuai Yu, Fangmin Cheng · Frontiers in Psychology · 2022

Compliance of corporate responsibility information at Vietnamese listed enterprises

Tran Quoc Thinh · Problems and Perspectives in Management · 2021

Determining the critical factors of eWOM about corporate social responsibility on social networking sites: End users’ perspective

Yuchen Hu, Qingbo Tang, Xuan Wang · Frontiers in Psychology · 2022

Corporate Social Responsibility through Collaboration in the Supply Chain: Insights into a More Sustainable Economy

Farhan Zeb Khaskhelly, Ali Raza, Hemal Azhar · Reviews of Management Sciences · 2023

Beyond goodwill: Examining the corporate social responsibility-operational efficiency nexus in the context of sustainable banking

Nitashree Barman · Corporate Governance and Sustainability Review · 2025

New Schemes for Investment in of Small and Medium-Sized Enterprises of China: Role of Access to Finance, Innovation, and Sustainability

Xuelian Tang · Frontiers in Psychology · 2022

Related research

Article metrics

Real usage data collected on this platform.

0

Page views

0

PDF downloads

0

Outbound clicks

8

Citations

Views by country

Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".

No views recorded yet.

Traffic sources

Referring site, by host.

No traffic recorded yet.

Views and downloads exclude known bots/crawlers. Citations combines this platform's own DOI-resolved index with each external source's own reported total — see Cited by above for individually listed citing works. Last refreshed 0 seconds ago.