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http://dx.doi.org/10.13106/jafeb.2021.vol8.no3.0539

Relationship Between Corporate Social Responsibility Expenditures and Performance in Jordanian Commercial Banks  

BANI-KHALED, Sakhr M. (Accounting Department, Faculty of Economics and Administrative Science, Al al-Bayt University)
EL-DALABEEH, Abdel Rahman K. (Accounting Department, Faculty of Economics and Administrative Science, Al al-Bayt University)
AL-OLIMAT, Nofan H. (Accounting Department, Faculty of Economics and Administrative Science, Al al-Bayt University)
AL SHBAIL, Mohannad O. (Accounting Department, Faculty of Economics and Administrative Science, Al al-Bayt University)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.3, 2021 , pp. 539-549 More about this Journal
Abstract
This study aims to examine the relationship between corporate social responsibility (CSR) expenditures and both financial and non-financial performance of Jordanian commercial banks during the period 2008-2018. To measure the variables of interest, secondary data published on Amman Stock Exchange (ASE) website were processed to become preliminary data suitable for the nature of the study. The study sample amounted to 13 commercial banks, which represent all Jordanian commercial banks listed on ASE.. The study found that there is a positive, statistically significant relationship between CSR expenditures and financial performance, as the study showed that the return on equity (ROE) has a positive and significant relationship with CSR expenditure, while the return on assets (ROA) and Tobin's Q model have a statistically significant negative relationship with CSR expenditure, while the market stock price (MSP) had a positive, but not statistically significant. The study also found that there is a positive, statistically significant relationship between CSR expenditures and non-financial performance, which was represented by total deposits and total training expenditures in Jordanian commercial banks. Accordingly, the study recommends encouraging banks to prepare sustainability reports and CSR reports, which are considered comprehensive, and not only with disclosures within the annual reports.
Keywords
Corporate Social Responsibility; CSR Expenditure; Financial Performance; Non-Financial Performance; Jordanian Commercial Banks;
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