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

Marcia Millon Cornett; Otgontsetseg Erhemjamts; Hassan Tehranian

doi:10.1016/j.jbankfin.2016.04.024

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Journal of Banking & Finance Vol. 70 2016

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

Marcia Millon Cornett¹; Otgontsetseg Erhemjamts¹; Hassan Tehranian²

¹ Bentley University · ² Boston College

Abstract

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.

DOI: 10.1016/j.jbankfin.2016.04.024
Volume: 70
Pages: 137-159
Language: en
Sources: crossref openalex bibtex:phds-export.bib

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

Abstract

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