Corporate social responsibility expenditure and financial performance: A comparison of Vietnamese listed and unlisted banks

2Citations
Citations of this article
76Readers
Mendeley users who have this article in their library.

This article is free to access.

Abstract

There are legal requirements for a bank to be officially listed on the Vietnam stock exchange; hence by the end of 2020, Vietnam’s banking industry had 43% of banks officially listed on the stock exchange and 57% of banks not officially listed. Accordingly, the difference between these two groups of banks is clear. This study aims to find empirical evidence for a one-way relationship between corporate social responsibility expenditure (CSRE) and the financial performance of Vietnamese commercial banks. In addition, the study also looks for the influence of each component of CSRE, including Community, Government, and Employee Responsibility, on the financial performance of listed and unlisted banks. Using the Generalized Method of Moments (GMM) controlling for heteroscedasticity, serial correlation, and endogeneity effects, the research results of the study show that CSRE as a cost reduces the bank’s financial efficiency; however, social responsibility spending with the community is a positive factor that increases the bank’s financial efficiency through creating an image and good impression with society and customers. Especially significantly stronger for commercial banks that have been officially listed on the stock exchange. Research results show the need to strengthen CSR implementation in the banking industry.

Cite

CITATION STYLE

APA

Chi, L. H. D., & Hang, B. T. T. (2023). Corporate social responsibility expenditure and financial performance: A comparison of Vietnamese listed and unlisted banks. Cogent Economics and Finance, 11(1). https://doi.org/10.1080/23322039.2023.2203987

Register to see more suggestions

Mendeley helps you to discover research relevant for your work.

Already have an account?

Save time finding and organizing research with Mendeley

Sign up for free