Do Corporate Social Responsibility and Culture Value affect Bank Decisions? Evidence from Risk-Taking and Performance

• Main Authors: TZENG,BO-RU, 曾柏儒
• Other Authors: CHEN,HSIAO-JUNG
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/32119461022069347962

碩士 === 南臺科技大學 === 財務金融系 === 104 === This study explores the influence of engaging in corporate social responsibility (CSR) activities and a country’s culture values on bank operating performance and risk-taking by using ordinary least squares regression model. The bank-specific and country-specific variables are also controlled in the regression model. The sample consists of banks in 39 countries over the period of 2005-2015 and the total observations are 4,552. The results show that banks engaging in CSR activities would lower their risk taking but cannot affect their performance. Higher degree of power distance index (PDI) and uncertainty avoidance index (UAI) or lower degree of individualism (IDV), masculinity (MAS) and long-term orientation (LTOWVS) can enhance banks’ accounting performance. Similarly, higher degree of power distance index, masculinity, uncertainty avoidance index and long-term orientation or lower degree of individualism and indulgence (IVR) can increase banks’ market performance. In addition, banks’ risk taking are decreased as they are located in a country inclined to individualism, masculinity, long-term orientation or indulgence. Although banks located in higher culture value countries are based on the greenwashing motives to engage in CSR activities, they could improve their net interest income or lesson their activity risk and insolvency risk by executing CSR activities. The countries with higher degree of power distance index, uncertainty avoidance index and long-term orientation are suitable for the former and the ones with more indulgent are adequate candidate for the latter.