IMPACT OF INVESTMENT IN CORPORATE SOCIAL RESPONSIBILITY ON FINANCIAL PERFORMANCES OF SOME FINANCIAL INSTITUTIONS LISTED IN DHAKA STOCK EXCHANGE
Journal Title: Asian Journal of Management Sciences and Education - Year 2012, Vol 1, Issue 2
Abstract
The study is on” Impact of Investment in Corporate Social Responsibility (CSR) on Financial Performances of Some Financial Institutions Listed in Dhaka Stock Exchange (DSE)”. The main objective of this study is to critically analyze the impact of investment in CSR on the financial performance of some banks listed in DSE. The empirical analysis of the study covered a period of 7years ranging from 2003 to 2009. The major findings of the study are: i) the study depicts that the sample enterprises discharge funds in the form of scholarship, free medical treatment, donation to the victims of natural calamity, sponsorships in talent hunt program, and sports and cultural program ; ii) employee motivation, learning and innovation, management’s reputation, risk management, operational efficiency, access to capital, licence to operate, globalization, governments and intergovernmental bodies, advances in communications technology, increasing awareness of the limits of government legislative and regulatory initiatives lead to investment in CSR; iii) enhanced brand image, increased customer loyalty, product differentiation, improved reputation of the management, enhanced ability to recruit, develop and retain staff, greater productivity, improved competitiveness and market positioning, better access to capital, risk management, enhanced operational efficiencies and cost savings, and ultimately to improve financial performance; iv) the study shows that there has been a positive partial relationship between investment in CSR and market price per share as well as net asset value per share in case of the sample enterprise during the study period because the value of coefficient of determination (r2) between the between investment in CSR and market price per share has been calculated as 0.728 , whereas between investment in CSR and net asset value per share has found 0.284. Therefore, the relationship between investment in CSR and market price per share is statistically significant; on the contrary the relationship between investment in CSR and net asset value per share is not statistically significant at 5% level of significance. All the findings signify that the performance of the sample enterprise in terms of market price per share and net asset value per share has been influenced by the investment in CSR during the study period.
Authors and Affiliations
Mohammad Emdad Hossain, Md. Zahangir Alam
Keywords
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