Greed or good deeds: An examination of the relation between corporate social responsibility and the financial performance of U.S. commercial banks around the financial crisis

We examine the relation between banks’ corporate social responsibility (CSR) and financial performance in a context of the recent financial crisis. We find that banks, in general, appear to be rewarded for being socially responsible as financial performance is positively and significantly related to...

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Bibliographic Details
Published inJournal of banking & finance Vol. 70; pp. 137 - 159
Main Authors Cornett, Marcia Millon, Erhemjamts, Otgontsetseg, Tehranian, Hassan
Format Journal Article
LanguageEnglish
Published Amsterdam Elsevier B.V 01.09.2016
Elsevier Sequoia S.A
Subjects
Commercial banks
Corporate social responsibility
Correlation analysis
Economic crisis
Financial performance
Firm performance
Social responsibility
Studies
United States
United States > US
M14
Corporate social responsibility
G21
Firm performance
L21
L25
Commercial banks
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Summary:We examine the relation between banks’ corporate social responsibility (CSR) and financial performance in a context of the recent financial crisis. We find that banks, in general, appear to be rewarded for being socially responsible as financial performance is positively and significantly related to CSR scores. We find that the biggest banks pursue socially responsible activities to a significantly greater extent than smaller banks. Further, the largest banks see a steep increase in CSR strengths and a steep drop in CSR concerns after 2009.
Bibliography:ObjectType-Article-1
SourceType-Scholarly Journals-1
ObjectType-Feature-2
content type line 23
ISSN:0378-4266
1872-6372
DOI:10.1016/j.jbankfin.2016.04.024