THE RELATIONSHIP BETWEEN CORPORATE SOCIAL RESPONSIBILITY AND PROFITABILITY OF COMMERCIAL BANKS IN NEPAL
- 주제(키워드) Corporate social responsibility economic responsibility , Legal responsibility , ethical responsibility , discretionary responsibility profitability , ROA , ROE , Size and growth
- 발행기관 아주대학교
- 지도교수 RHEE CHEUL
- 발행년도 2017
- 학위수여년월 2017. 8
- 학위명 석사
- 학과 국제대학원 국제경영학과
- 실제URI http://www.dcollection.net/handler/ajou/000000025826
- 본문언어 영어
- 저작권 아주대학교 논문은 저작권에 의해 보호받습니다.
초록/요약
CSR can be the useful strategic tool for attraction of very qualified and skilled employees. CSR activities focusing on sustainability issues may lower costs and improve efficiencies as well. Some of the studies found that the relative weightings of Carroll formerly consigned to four components are appropriate and some studies counter. One of the main theoretical controversies concerns the relationship between CSR and profitability. Some studies have shown positive relationship and other studies have shown negative or no relationship between CSR practices and profitability. The main objective of the study is to analyse the relationship between corporate social responsibility and profitability of Nepalese commercial banks. The quantitative sample of this study includes pooled panel data from 25 commercial banks for the period of 6 years (2010/11- 2015/16) with 150 observations and qualitative sample of this study includes 61 respondents which includes managers and employees of 25 commercial banks. The relation between CSR and Profitability is hard to be measured in a direct way as profitability is also affected by other factors of the bank. This paper examines the relationship between the components of CSR and profitability through correlation and regression analysis. The empirical results show the different relationship of each of the components of the CSR with the profitability proxies’ ROA and ROE of the Nepalese commercial banks. The finding reveals that Nepalese commercial banks are more involved in the activities related to charities and funds. CSR is developing practices in context of Nepal by firms and financial institutions. The bank performs CSR as a voluntary act without any mandatory policies. So size and growth (eps growth) were included in the study as control variables. Employees of commercial bank didn’t rank the CSR according to the original concept of Carroll. Managers and employees of commercial bank give highest ranking to legal responsibility followed by ethical responsibility, discretionary responsibility and economic responsibility. From the study it was found that the relation for profitability measured by ROA and ROE were not significant with the economic and legal responsibilities but have positive and significant relationship with discretionary responsibility of the commercial bank of Nepal. However, the ethical responsibility has positive and significant relationship with only ROA following the Carroll’s Pyramid.
more목차
CHAPTER ONE INTRODUCTION 1
1.1 Introduction to CSR 1
1.2 Background of study 2
1.2.1 CSR and Banking 4
1.2.2 Commercial Bank in Nepal 5
1.2.3 CSR Practices in context of Nepalese Commercial Bank 6
1.3 Statement of problem 7
1.4 Research Questions 9
1.5 Purpose of the study 9
1.6 Significance of the study 10
1.7 Research hypothesis 10
1.8 Operational definitions and assumptions 11
CHAPTER TWO LITERATURE REVIEW AND CONCEPTUAL FRAMEWORK 14
2.1 Reviews of related literature 14
2.2 Research gap 24
2.3 Conceptual framework 25
Figure 2.1 Schematic Diagram of Factors Influencing Profitability 26
2.4 Concluding remarks 27
CHAPTER THREE RESEARCH METHODOLOGY 29
3.1 Research design and plan 29
3.2 Description of the sample 30
3.3 Instrumentation 32
3.4 Data collection procedure 33
3.4.1 Primary data 33
3.4.2 Secondary data 33
3.5 Reliability Test 34
3.6 Validity Test 34
3.6.1 Factor Analysis Test 35
3.6.2 Multicollinearity Test 35
3.7 Method of Analysis 36
3.8 Model specification 37
CHAPTER FOUR RESULT ANALYSIS 39
4.1 Presentation of results 39
4.1.1 Analysis of primary data 39
4.2 Validity Test Results 55
4.2.1 Factor Analysis Results 55
4.2.2 Multicollinearity Test Results 57
4.3 Analysis of Secondary Data 58
4.3.1 Kendalls Tau-b correlations coefficient for CSR and profitability of Nepalese commercial banks 59
4.3.1.1 Kendalls correlations coefficient of CSR and ROA of Nepalese Commercial banks 59
4.3.1.2 Kendalls correlations coefficient of CSR and ROE of Nepalese commercial bank 61
4.3.2 Regression analysis 62
4.3.2.1 Regression of CSR variables on return on asset 62
4.3.2.2 Regression of CSR variables on return on equity 64
CHAPTER FIVE DISCUSSION 68
CHAPTER SIX SUMMARY AND CONCLUSION 74
6.1. Summary 74
6.2 Conclusion 79
6.3 Recommendations 80
6.4 Limitation of the research 80
6.5 Future research recommendations 83
REFERENCES 84
APPENDIX-1 95
APPENDIX-2 96
APPENDIX-3 101
APPENDIX 4 102
